The conundrum of neoclassical economic theory and quantitative finance induced 2008 financial crisis and the great financial crisis enabled transition from cheap oil based mass-production economy to the emergence of cheap microchip enabled information economy [attention merchants’ surveillance capitalism]

Year 2019, Volume: 1 Issue: 1, 49 - 83, 31.07.2019

Tunç Özelli

Abstract

The text examines the main
insights of the new sciences and disciplines, and shows how they reveal the
flaws of NEWTONIAN orthodox NEOCLASSICAL ECONOMIC THEORY, in explaining and
predicting the catastrophic events of the near economic history of the Unites
States, and provides new ways of understanding the role of monetary policy in
the emergence of information economy of ASSET MANAGER CAPITALISM.  A brief history of the transition from
MANAGERIAL CAPITALISM of nation states of the post-World War II
institutionalized with the BRETTON WOODS AGREEMENT, to global ASSET MANAGER
CAPITALISM, is presented to enlighten the emergence of CHIMERICA
[China+America], and President Trump’s recent attempts to dismember it by
enabling the emergence of a bipolar world - TECHNOLOGIC COLD WAR - by
weaponized global interdependence.  The
globally interdependent techno-sphere is shown as an enabled outcome of the implementation
of WASHINGTON CONCENSUS of Anglo-American ASSET MANAGER CAPITALISM, that
survived a comatose near death experience in 2007-2008.  The major warriors and battlegrounds of THE
TECHNOLOGIC COLD WAR are identified.

The text shows how GAIA THEORY
sheds new light on economic growth, how fuzzy logic affects the national
accounts, how accounting systems over-value the assets of publicly traded
multinational companies balance sheets, and how network theory reveals the
value of relationships, and argues that the economy needs to be viewed as a
complex, chaotic system, as scientists view nature, not as an equilibrium
seeking NEWTONIAN construct.

Keywords

Asset manager capitalism, Managerial capitalism, Attention merchant’s capitalism, Chimarica

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