Skip to main content

August 12, 2020: The day capitalism officially died and replaced by something even worse

 
It was the 12th of August, 2020. Nine o'clock in the morning, in London, the news came out that the national income of Britain (GDP) had fallen by more than 20%. That had never happened before in the history of capitalism - British GDP falling by 21% or so in one year. It was not anticipated. The markets were expecting a fall of 8,9,10%. No one was expecting a 21% fall.

Fifteen or sixteen minutes later, the London stock exchange went up by 3%. There can be no explanation of that along the lines of capitalism.
 
 
This is how the Greek economist, Yanis Varoufakis, described essentially the official death of capitalism and its replacement by something even worse. The thing he calls "technofeudalism".

While Varoufakis in various discussions struggles to explain why capitalism is already dead, it's rather funny that people still willing to debate on something that's already dead (capitalism) against something that's far from being practically implemented (Socialism), since this something that died has been already replaced by something even worse. That is, a kind of 21st century corporate feudalism which drives civilization further away from a Socialist Utopia.

The beginning of the end of Keynesian capitalism, took place half century ago, when in 1971, one of the worst presidents in the history of the United States opened the door to the domination of financial capitalism and the correlated destructive neoliberalism.

Throughout all these decades since Nixon opened the gates of hell, neoliberalism completely prevailed in the entire West and elsewhere through a peculiar cultural totalitarianism. The fraudulent ideology hypnotized the masses by offering a fake prosperity that came out mainly from the excessive money-borrowing from households to cover even their basic needs.

The 2007-08 big financial crisis was almost inevitable. Yet, instead of seeing a mobilization by the state similar to that after the 1929 crisis, we saw the opposite.  The state intervened to save the advocates of the free market, at the expense of the taxpayers and the working class. 
 
And it could have become quite obvious that capitalism (in its last transformation) already died in 2008, if the governments in the West hadn't spent huge amounts of credit energy to keep the rotten system alive. 

Another Greek economist, Kostas Lapavitsas, describes another unprecedented thing that happened back then, which brought the system just one step prior to total collapse. As Lapavitsas says:
 
                         That crisis was global, systemic - the entire system came very close to collapse, and it was structural, it was deep, it wasn't because of some accident. This was a crisis of financialization - and where did it come from? Strikingly enough, it came out of the financial system, and out of lending to the poorest sections of the US working class. This is an extraordinary thing. Historically, we've never seen anything like it - that lending to workers and particularly to poor workers, could destroy the capitalist system.

The fact that the governments extended the life of the dying system, gave the time to the most powerful to prepare ground for zombie capitalism's successor, in order to significantly extend their power globally. The transition from the dead capitalism to a new type of feudalism is taking place today under our noses. And grotesquely enough, it happens while we still debate about whether capitalism should be preserved or replaced.
 
Varoufakis focuses on technofeudalism and the BigTech digital monopolies that control almost every aspect of life, as people increasingly depend on digital environments for almost every activity. Yet, it seems that, unfortunately, the situation is much worse.
 
Behind the glamorous facade of the new technologies - glamorous enough to act like a powerful drug that disorientates especially young generations from the real issues - the big picture is being revealed for those who have the will to clearly see the dystopian reality.
 
And this reality includes the attempt by the big corporations to control not just digital environments, but also vital resources in the real world. New revelations indicate that big corporations in 2019 made a first organized attempt to institutionalize land-grab in order to control the global food production. 
 
The blog identified such a dark prospect already since 2014. We wrote back then that having secured the new labor force through fully automated machines, what has left for the dominant elite now, is to take all the resources. Big corporations are grabbing huge cultivable areas especially in the developing countries in order to control food production. 
 
But even without all that information, the feudal nature of the new system is unfolding in front of our eyes, as long as we have the will to see it. Think about it. A declining capitalism that didn't manage to recover from the 2007-08 global financial earthquake, passed the COVID-19 pandemic to the hands of the new feudalism. Why on earth a feudal system would be interested to deal effectively with such a health crisis, instead of using it to boost the power of the modern oligarchs? Indeed, the mega-billionaires saw their fortunes grow bigger, when millions more workers struggle even harder, just to keep their heads above the water. And how about the BigTech oligarchs like Branson, Bezos and Musk, who thought that a space race would be OK at such an extremely difficult time for the many? Such a hubris!

 
The only thing now left to ask, is whether there are any signs of hope to fight such a dystopian development. We believe there are. 
 
The Anglo-American axis and soon after the entire West, became the main carriers of neoliberalism throughout the 80s and 90s, until the major financial crisis of 2007-08. Neoliberalism's shock doctrine was first implemented in Chile, later in Russia, South-East Asia and elsewhere with devastating results.
 
However, China managed to escape the disastrous wave and followed a different path, which resulted in a far more successful and truly viable model. And that's the last thing the Western financial/corporate oligarchy would like people to see against its failed model, which of course is quite successful only for maintaining oligarchy's power and interests. 

As the US empire was occupied with the disastrous outcomes from its wars in Iraq and Afghanistan, we saw the Pink tide - a political wave and perception of a turn towards left-wing governments in Latin American democracies moving away from the neoliberal economic model at the start of the 21st century. A resurgence of the pink tide was kicked off by Mexico in 2018 and Argentina in 2019, and further established by Bolivia in 2020 along with Peru in 2021, and Honduras and Chile in 2022.
 
And even inside the motherlands of neoliberalism, we saw Leftist politicians becoming quite popular particularly among young generations. The political scenery would have changed radically if the terrified establishment hadn't spent so much propaganda energy and fraud to prevent politicians like Bernie Sanders and Jeremy Corbyn taking the power.

The blatant failure of the neoliberal model made it very hard to continue propagating its typical narratives to brainwash, especially young generations, about its alleged success. And this became very clear when even Joe Biden was forced to declare inside the US Congress that one of neoliberalism's most basic and fraudulent narratives (Trickle-Down Economics), has never worked.

These developments among others, indicate that the Western neoliberal establishment struggles harder and harder to maintain neoliberal status quo. And the fraudulent neoliberal principles are necessary for the transition from neoliberalism to the 21st century corporate feudalism. Yet, the elites always seem to be at least one step ahead. And we believe there are two main reasons for that. 
 
First, the elites accumulated so much power in previous decades that ended up controlling almost entirely the economic and political decision centers.
 
Second, the cultural totalitarianism designed to secure neoliberalism's sovereignty, penetrated so deeply inside the brains of entire societies, that, today, it looks like it is almost impossible to be removed. 
 
It is evident that the key slogans of neoliberalism lost most of their power. Yet, younger generations seem to only beginning to scratch the surface of this cultural Matrix inside which they were born and trapped. And the complete liberation of their minds appears to be a very slow and difficult process.
 
And even worse, many others will keep defending the new Dystopia, completely ignoring that capitalism died and replaced by something even worse. It's actually what Morpheus explained to Neo about the Matrix: "... most of these people are not ready to be unplugged. And many of them are so inured, so hopelessly dependent on the system, that they will fight to protect it.

This - desirable for the elites - behavior, can only be achieved if the transition towards the corporate feudalism is as smooth as possible and silent. And it appears that at least for now, this goal has been met.

Comments

Popular posts from this blog

Gaza 2 Years On: Yanis Varoufakis & Katie Halper on the Flotilla, Israel's PR Machine & What’s Next

DiEM25   Two years since October 7, Katie Halper (‪@TheKatieHalperShow‬) and Yanis Varoufakis join host Mehran Khalili to break down Israel’s genocide in Gaza, the latest on the flotilla, Israel’s influencer PR push, and the “peace plan”.  

World leaders rebel against US & Israel: to save Gaza, they demand international intervention

Geopolitical Economy Report   Leaders from dozens of countries condemned the USA and Israel in their speeches at the UN General Assembly, demanding international intervention to save Gaza. Diplomats staged a mass walkout to protest Netanyahu's speech. Ben Norton shows how Latin American governments are standing in solidarity with Palestine.  

Freedom Flotilla Coalition & Thousand Madleens to Gaza sailing to break the siege

Freedom Flotilla Coalition   The next wave is already being prepared, help us buy the boats and get them ready to sail!  

The Rise of the Thielverse & the Surveillance State

The Chris Hedges YouTube Channel  Whitney Webb traces the Thielverse’s rise and the construction of the bipartisan modern surveillance state that Trump and his benefactors are deploying against dissidents and immigrants today.

Capitalism & Genocide - Yanis Varoufakis Speech at the Gaza Tribunal, 23rd October 2025, Istanbul

Yanis Varoufakis   On 23rd October, Yanis Varoufakis testified in front of the Jury of Conscience in the context of the Gaza Tribunal. His speech focused on the economic forces underpinning the genocide of the Palestinian people. In particular, he spoke on the manner in which capitalist dynamics have historically fuelled the white settler colonial project and, more recently, how the accumulation of a new form of capital - which he calls cloud capital - has accelerated, deepened and amplified the economic forces powering and propelling the machinery of genocide. 

Προβλέψεις ...

GR elections Update (15/9): Αναθεωρημένες προβλέψεις (μετά το δεύτερο debate): ΣΥΡΙΖΑ 28-30% ΛΑΕ + ΣΧΕΔΙΟ Β' κ.λ.π. 20-23% ΝΔ 11-13% ΧΑ 6-8% ΚΚΕ 5-5,5% ΕΝΩΣΗ ΚΕΝΤΡΩΩΝ 2,5-3% ΠΟΤΑΜΙ 2,5-3,5% ΠΑΣΟΚ + ΔΗΜΑΡ 3-4% ΑΝΕΛ 2,5-3,5% Update (11/9): Αναθεωρημένες προβλέψεις (μετά το πρώτο debate): ΣΥΡΙΖΑ 25-28% ΛΑΕ + ΣΧΕΔΙΟ Β' κ.λ.π. 20-23% ΝΔ 11-13% ΧΑ 6-8% ΚΚΕ 5-5,5% ΕΝΩΣΗ ΚΕΝΤΡΩΩΝ 3,5-4% ΠΟΤΑΜΙ 2,5-3,5% ΠΑΣΟΚ + ΔΗΜΑΡ 3-4% ΑΝΕΛ 2,5-3,5% Update (04/9): Αναθεωρημένες προβλέψεις: ΣΥΡΙΖΑ 23-25% ΛΑΕ + ΣΧΕΔΙΟ Β' κ.λ.π. 20-23% ΝΔ 12-15% ΧΑ 6-8% ΚΚΕ 5-5,5% ΕΝΩΣΗ ΚΕΝΤΡΩΩΝ 3,5-4% ΠΟΤΑΜΙ 2,5-3,5% ΠΑΣΟΚ 3-4% ΑΝΕΛ 2,5-3,5% Update (29/8): Αναθεωρημένες προβλέψεις: ΣΥΡΙΖΑ 23-25% ΛΑΕ + ΣΧΕΔΙΟ Β' κ.λ.π. 20-23% ΝΔ 12-15% ΧΑ 6-8% ΚΚΕ 5-5,5% ΕΝΩΣΗ ΚΕΝΤΡΩΩΝ 4-4,5% ΠΟΤΑΜΙ 4-4,5% ΠΑΣΟΚ 3-4% ΑΝΕΛ 2,5-3,5% Update : Αναθεωρημένες προβλέψεις: ΣΥΡΙΖΑ 26-27% ...

WikiLeaks reveals that literally every router in America has been compromised

The latest Wikileaks Vault7 release reveals details of the CIA’s alleged Cherry Blossom project, a scheme that uses wireless devices to access users’ internet activity. globinfo freexchange As cyber security expert John McAfee told to RT and Natasha Sweatte: Virtually, every router that's in use in the American home are accessible to hackers, to the CIA, that they can take over the control of the router, they can monitor all of the traffic, and worse, they can download malware into any device that is connected to that router. I personally, never connect to any Wi-Fi system, I use the LTE on my phone. That's the only way that I can be secure because every router in America has been compromised. We've been warning about it for years, nobody pays attention until something like WikiLeaks comes up and says 'look, this is what's happening'. And it is devastating in terms of the impact on American privacy because once the router...

Confirmed: US imperialists wanted to drag Russia into a war with Ukraine since at least 2019

globinfo freexchange   As we wrote in our previous article, after almost eight years, the US imperialists and the NATO criminals got what they wanted. They finally managed to drag Russia into a war with Ukraine.     We now have indisputable evidence for that, through a document by the top US think tank, RAND Corporation. In the preface of a 2019 report under the title Extending Russia, Competing from Advantageous Ground we read: [emphasis added]                            The purpose of the project was to examine a range of possible means to extend Russia. By this, we mean nonviolent measures that could stress Russia’s military or economy or the regime’s political standing at home and abroad. The steps we posit would not have either defense or deterrence as their prime purpose, although they might contribute to both. Rather, these steps ar...

Already happens: Capitalism destroys human labor force and goes to the next phase

by system failure Connecting the dots one can discover the most nightmarish scenarios. Destructive capitalism's next phase is the total substitution of the human labor force with robotic machines, or in other words, the hyper-automatization. There is a process taking place right now, and no one (or nearly no one) knows what would happen after its completion. The true picture behind unemployment From a latest article in PressTV: “ Did you know that there are nearly 102 million working age Americans that do not have a job right now? And 20 percent of all families in the United States do not have a single member that is employed. So how in the world can the government claim that the unemployment rate has “dropped” to '6.3 percent'?” “ Well, it all comes down to how you define who is 'unemployed'. For example, last month the government moved another 988,000 Americans into the 'not in the labor force' category.” http://www.presstv.ir/detail...

A response to misinformation on Nicaragua: it was a coup, not a ‘massacre’

There is so much misinformation in mainstream corporate media about recent events in Nicaragua that it is a pity that Mary Ellsberg’s article for Pulse has added to it with a seemingly leftish critique. Ellsberg claims that recent articles, including from this website, often “ paint a picture of the crisis in Nicaragua that is dangerously misleading. ” Unfortunately, her own article does just that. It looks at the situation entirely from the perspective of those opposing Daniel Ortega’s government while whitewashing their malevolent behavior and downplaying the levels of US support they have relied on. Her piece is an incomplete depiction of what is happening on the ground, ignoring many salient facts that have come to light and which have been outdated by recent events. The following is a brief response to Ellsberg’s main points from someone who lives in Nicaragua and has observed the situation directly and intimately: https://grayzoneproject.com/2018/08/15/a-res...