Wednesday May 24 2017

Neoliberalism is a socially compulsory game where money is points, to be maximized. Points have no limits; the most successful strategies gain points by fiat: new money is given to players who do socially approved things. 

Arbitrarily devalued pursuits are not assigned points, with the excuse that "there's no more points left". But games have no such conservation of points law. The bank never breaks in Monopoly.

The rich know that in a system with one bank, bank runs are impossible because the single bank issues the best money. The rich further understand that the world central bank unlimited currency swap network makes the world financial system function as if there were one bank. Thus the finance companies can create money in innovative ways using exotic financial instruments such as derivatives, swaps, perfect hedges derived from linear algebra optimization algorithms, etc. The created IOUs promise future risk-free returns and become themselves bid up in market trading, circulating as money. In times of crisis the Federal Reserve proved in 2008 and after that it can create an unlimited amount of Federal Reserve US Dollars, which is the best money, to rescue world markets.