Capitalism Falls Down

Imagine if you will, Capitalism falls down (its "late stage Capitalism" after all, they say) and all that is left is capitalism.

Rots-child said it best, "Competition is a sin" (or maybe he said Competition is a crime)

"But, Builder, we all learned in school that Capitalism biggest strength is that people continually compete to make better/cheaper products."

Well, you were told a lie. We all were told a lie.

Starbuckins doesn't sell better coffee at better prices, they flood the local market, where they open a Starbuckins with coupons until the small coffee shops go out of business. They can afford losing money far longer than mom & pop.

The other side of reality is that there is room enough for both coffee houses to be in business, except evil business people do not think so.

And now, profit is considered evil. Making it even more difficult to run a good business.

Profit is Mom & Pop's income

Nobody complains about getting a salary, or getting paid $X an hour. But all the neo-liberals and Marxists complain about profit. In a Mom & Pop operation, the profit is their salary. And it is often less than they pay their employees.

Sadly, for Mom & Pop, profit is also the capital needed to grow the business. So, they have a choice, take a cut in their salary, or not grow the business.

Farms are even worse. You have to spend soooo much to hope that you get a harvest. And, since it is a commodity, the price is set by the lowest offer.

The independent farmer is screwed, both ways. The Wheat market is a Monopsony! (Monopsony - Monopoly means one seller, Monopsony means one buyer) Basically, if you grow wheat, you are selling it to Kel-logs. They set the price. If that is lower than your costs, well, too bad.

There is such a tiny market for wheat in the commercial sector. Individuals who make their own bread. Or small bakeries.

But, i love several farms for trying. Order my wheat straight from them.

Anyway, profit is important. And a level of profit is needed to be maintained, or the industry dies. (there are a lot of things you can't buy, because there is no profit in them)

And the thing the BigCorps and the BigBanks do is they make it cheaper, by printing money, for the Monopolies and the Monopsonies to stay in business while technically running a loss.

Wally Mart Makes profit off of Inflation

No one can compete with Wally Mart. Because, their profit is made off the inflation from when they buy something to when they sell it.

And this is only doable if they get really cheap money from the banks. And, of course, the banksters defend this by saying that of course they lend Wally Mart money, they are a big corporation that always pays. (sometimes with another loan) But, you can go through the history and find all kinds of companies that were killed off by the banks denying them financing/cutting off their line-of-credit, even cutting off their payment processor.

The BigBanks and the BigCorpse are in cahoots. Well, it might be better to say that Rots-childs owns both of them.

Woe to Mom & Pops who need a little cash to float them over a hump. The banks are ruthless, even though the sign out front says they support small business.

When the money printer stops

When the money printing is stopped, prices of everything will change, and drastically.

The best example is shirts from China. You can buy a shirt, online, from a Chinese seller, for less than it costs you to send a shirt to your friend. A shirt, manufactured, put in an envelope, shipped across the ocean, goes through customs, given to USPS/UPS/FedEX, and delivered to your friend's door, costs less than you shipping a shirt, that you have already bought, to your friend across the States.

How is this possible?

Because banksters pay the difference. And competition is a crime.

It is difficult to prove, because they have to look legit. They say, that the shipping is cheaper in bulk. And that they buy the shirts in bulk, straight from the manufacturer. But, it is apparent, with any digging, that City of London banks are paying Chinese banks to subsidize manufacturing and shipping. Of course, the CCP says that it is only proper to support Chinese businesses.

As soon as that money flow stops. Which is as soon as the money printers stop working. All the prices of everything changes. Stuff from China will be 3-10x overnight. Stuff from independent sellers may stay the same, or may become non-existent. (Imagine if cheap screws from China stopped coming, could you assemble anything? There are very few screws/bolts made in The US)

We, in America will probably pay a little bit more for wheat. and the rest of the world will be pay 10x for wheat. We are complaining about the measly 100% inflation on food, imagine the other countries with 1,000% increase, overnight.

Nothing in our life is priced accurately. Water costs more than gasoline! The Christmas toy costs less than the wrapping paper. McDs "hamburger" costs less than a salad.

Capitalism doesn't work because there hasn't been capitalism for a long time.

Capitalism really only works when there are dozens of sellers, all about the same size, and none of them have access to printed money. And ALSO, that there are many buyers. Many buyers buying from many sellers.

Do we have anything close to that? When we have 7 companies providing almost all the stuff in grocery stores? And we have a handful of grocery stores, that are only different in name.

Something strange is going to happen. Things will find their price. A dozen eggs will cost a satoshi. (it will probably be cheaper) And everyone will sell them for a satoshi. And anyone trying to undercut will be laughed at. And people who cut corners, and try to run a giant, indoor chicken pen, with lots of diseases and stressed hens, will be avoided. (yes, businesses will get social credit scores) But, back to the price, it will be figured out from what a locally grown hen, laying an egg actually costs, and how much profit (payment) is appropriate for that.

So, with local manufacturing (a bunch of small sellers) and no money printing (like bitcoin) and lots of informed buyers, we may actually see what people call free-market capitalism.