Economics and Finance


A Biological, Systemic Model of the Eco(nomic)system and Its Financial Crashes: the 72 Years Cycle of Evolution of Weapons, Machines and Money

Authors: Luis Sancho

The Industrial Evolution of machines follows an economic human generational cycle’ of 72±8 years. Each cycle a nation discovers a new form of energy (steam, then oil and electricity), applied to the creation of money, the software of the economy and its hardware, which are machines that imitate the organic functions of human beings, enhancing our biological systems but also competing and atrophying them. So in the XIX century during the British age steam was applied to bodies of metal, trains and steamers; then in the German cycle, oil was applied to engines, their hearts and after II world war in the American cycle, electricity applied to the creation of minds of metal, chips, cameras and mobiles that imitate human brains, eyes and ears. Now in the last cycle of the industrial evolution we put together those organic parts into organic machines, robots. Since we create machines by imitating human organs of energy and information, from a scientific perspective, machines must be considered organisms of metal, and their ‘company-mothers’ their systems of reproduction, whose only goal is to evolve, multiply and sell them for profit, creating an eco(nomic)system made to its image and likeness. Facts those which allow to study the economics with the laws of biological organisms, predicting the evolution of machines, their crisis of over reproduction and their relationships of symbiosis and competition with the human kind, as this writer has done for the past 20 years, forecasting with remarkable accuracy the present crisis of overproduction of chips, its software, e-money and its hardware, white collar pcs and blue collar robots that are displacing humans from labor and war fields. Such biological model of the industrial evolution casts doubts on the present strategy of solving the crisis by further increasing the overproduction of those ‘memes of metal’. Instead nations should increase the production of the alternative economic system: welfare, carbon-life based goods that humans need to survive, creating a world made to our image and likeness, by switching credit in a global New Deal to companies that reproduce human WHealth, from Health care to agricultural goods while limiting credit to corporations that overproduce industrial wealth. Yet since machines have lower costs of production and higher prices than welfare goods, their sales give higher profits, reason why in a capitalist system where money is invented by private corporations whose only goal is to increase profits, the present overproduction crisis of industrial goods that absorbs the limited resources of the planet - provoking a parallel, chronic underproduction of welfare foods - cannot be solved. The result is the constant degradation of the ecosystems based in carbon-life goods, Nature and History. Since we, humans are NOT made of metal, but of carbon-life, and we need welfare goods to survive, a fact often forgotten by those financial and industrial corporations that rule the eco(nomic)system. Thus the only democratic, humane solution to the crisis is political: the financial industry must be nationalized, creating a mixed system of political democracy, western style and financial control, Chinese style, where banks are regulated to foster credit on the welfare sectors of the economy that provokes a much higher, healthier demand-based economical growth.

Comments: 64 Pages.

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[v1] 2014-01-01 13:18:44

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