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What is money and who rules the world? | Yanis Varoufakis | Escaped Sapiens #46

Escaped Sapiens・46 minutes read

Former Greek Finance Minister Janus Verifakis discusses power dynamics, economic crashes, and the rising influence of social media and tech giants, highlighted on the "Escape Sapiens" podcast with Shane Farnsworth. Verifakis contrasts capitalism and feudalism, advocates for writing off unpayable debts, and criticizes the handling of economic crises, lack of tech innovation, and integration within the European Union.

Insights

  • Janus Verifakis emphasizes the detrimental impact of bank bailouts post-2008, where state money saved bankers while innocent people faced harsh austerity, hindering economic recovery and the green transition.
  • Verifakis critiques the European Union's lack of cohesive plans for financial aid distribution, artificial intelligence, and energy strategies, contrasting it with the US and China's proactive tech approaches, ultimately hindering Europe's competitiveness and technological progress.

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Recent questions

  • How does Janus Verifakis view the power dynamics between politicians, multinational banks, and tech giants?

    Janus Verifakis discusses the intricate power dynamics between politicians, multinational banks, and tech giants, shedding light on economic crashes, bank bailouts, and the influence of social media and tech monopolies. He emphasizes the real power wielded by politicians and the rising impact of social media and tech companies in today's world.

  • What historical insights does Janus Verifakis provide on the evolution of money?

    Janus Verifakis delves into the historical evolution of money, citing Karl Marx's definition of money as the alienated ability of humankind. He explains money as both a tangible commodity and a transferable form of debt, tracing its roots back to ancient payment systems. Verifakis contrasts feudalism and capitalism, highlighting how capitalism's financialization led to endogenous economic crises.

  • How did the 2008 bank bailout differ from traditional methods of handling financial crises?

    The 2008 bank bailout involved central banks printing money to salvage banks' failed bets, rather than extracting value from the future. Janus Verifakis explains that unpayable debts should be written off, either by tearing up the IOU or constantly rolling it over to pretend it can be repaid. He criticizes the post-2008 tragedy of socialism for bankers and austerity for innocent people, leading to a catastrophic economic situation.

  • What are the consequences of saving banks versus saving bankers during financial crises?

    Janus Verifakis emphasizes the importance of saving banks to maintain the payment system but argues that saving bankers is unnecessary and harmful. He contrasts South Korea's approach in 1998 of saving banks but not bankers, leading to minimal crisis impact in 2008. Verifakis highlights how directing financial aid to the general population can boost demand and prevent economic downturns.

  • How does Janus Verifakis view the European Union's handling of financial challenges and technological progress?

    Janus Verifakis criticizes the European Union's inefficiencies in distributing financial aid to citizens during the pandemic, highlighting technological shortcomings and lack of integration. He notes Europe's failure to nurture tech competitors like China or the US, resulting in a defensive stance against Big Tech. Verifakis discusses the EU's lack of a comprehensive plan for artificial intelligence and the absence of a common debt system, hindering effective crisis management and technological progress.

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Summary

00:00

"Power Dynamics in Politics, Finance, Tech"

  • Janus Verifakis, a former Greek Minister of Finance, discusses the power dynamics between politicians, multinational banks, and social media/tech giants.
  • The conversation delves into economic crashes, winners and losers of bank bailouts, dysfunctions within the EU, and the real power politicians wield.
  • Verifakis highlights the rising influence of social media and tech monopolies in today's world.
  • The podcast, "Escape Sapiens," hosted by Shane Farnsworth, supports these conversations.
  • Verifakis shares his favorite swimming spot in Greece, a secluded cove on an unnamed island.
  • He describes the island's beauty, proximity to Athens, and the sense of being far from civilization.
  • Verifakis explains the historical evolution of money, citing Karl Marx's definition of money as the alienated ability of humankind.
  • Money is seen as both a tangible commodity and a transferable form of debt, with roots in ancient payment systems.
  • Verifakis contrasts feudalism and capitalism, explaining how capitalism's financialization led to endogenous economic crises.
  • The 2008 bank bailout involved central banks printing money to salvage banks' failed bets, rather than extracting value from the future.

19:30

Debt forgiveness, bank saving, tech competition impact

  • Unpayable debts should be written off, either by tearing up the IOU or constantly rolling it over to pretend it can be repaid.
  • The tragedy post-2008 involved socialism for bankers and harsh austerity for innocent people, leading to a catastrophic economic situation.
  • Bankers benefited from state money while others suffered austerity, causing low levels of investment and hindering the green transition.
  • Saving banks is crucial to maintain the payment system, but saving bankers is unnecessary and harmful.
  • South Korea's approach in 1998 of saving banks but not bankers led to minimal crisis impact in 2008, contrasting with other regions.
  • Directing financial aid to the general population, as seen in Australia and the US, can boost demand and prevent economic downturns.
  • European inefficiencies in distributing financial aid to citizens during the pandemic highlight technological shortcomings and lack of integration.
  • The US dominance in tech innovation is due to size, first-mover advantage, and historical hegemony, while China actively cultivated tech competitors.
  • Europe's failure to nurture tech competitors like China or the US results in a defensive stance against Big Tech, hindering technological progress and competitiveness.

37:29

EU's Lack of Cohesion Hinders Progress

  • Tick Tock is gaining popularity over YouTube, reflecting a trend of tech companies rising.
  • The European Union's handling of challenges like the banking crisis and green energy has been criticized.
  • Lack of a cohesive energy plan for Europe is highlighted, with individual countries pursuing their own strategies.
  • The European Union is faulted for lacking a comprehensive plan for artificial intelligence, unlike other global players.
  • The European Union Commission is likened to OPEC, focusing on market control rather than innovation.
  • The absence of a common debt system in the EU is noted, hindering effective crisis management.
  • The Euro's creation was intended as a stepping stone towards political union, but it may have backfired.
  • The financial crisis exposed rifts between European countries, leading to blame games and cultural tensions.
  • Power dynamics in today's world are analyzed, with emphasis on the concentration of power within capital.
  • The speaker, a former Finance Minister of Greece, reflects on his limited power in the face of economic challenges.

56:39

"Marxist speaker opposes share markets, embraces art"

  • The speaker, a Marxist or socialist, discusses ethical decisions like buying shares or shopping on Amazon, expressing opposition to share markets and derivatives. They mention indirectly owning shares through superannuation funds but personally avoid consciously buying shares.
  • They recount accepting a position in the Ministry of Finance after a political party's rise in popularity due to proposals aligning with the speaker's ideas on banking, wages, and empowering the masses. Their main goal was to restructure Greek debt to alleviate austerity measures.
  • The speaker finds happiness in being with loved ones and immersing themselves in art, music, and cinema, drawing inspiration from Captain Picard in Star Trek who emphasizes self-improvement through personal growth and appreciation of beauty in the world.
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