The New Cold War & What's After Capitalism | Yanis Varoufakis National Press Club Address

Recent questions

• What are the concerns about Europe and Australia's future?

  Yanis Yakis, an academic economist and former Finance Minister of Greece, expressed concerns about the future of Europe and Australia during his speech at the National Press Club. He highlighted the shift from strategic dependence on the United States to a non-strategic alignment with Washington's agenda as a threat to their relevance. Yakis discussed the challenges posed by the era of "techn feudalism," where Cloud Capital dominates, and emphasized the concentration of this capital in the United States and China, which could challenge Europe and Australia's competitiveness. He also critiqued Europe's monetary architecture post-Global Financial Crisis (GFC) and discussed the impact of the new Cold War on these regions, attributing it to a clash between the American dollar-denominated system and Chinese Cloud Capital.

• What is the proposed solution for Australia's business model?

  Yanis Yakis proposed a shift towards a green New Deal for Australia to address the issues with its old business model, which he likened to a Ponzi scheme. He suggested focusing on renewable energy sources like solar power to produce green hydrogen for domestic use and export. Public investment, similar to the historic Snowy Scheme, was deemed essential for this transition. Yakis also recommended reversing the financial burden on the youth by making higher education free again and taxing concentrated power. Building social housing was advised to benefit individuals and stabilize private home prices. Additionally, he urged the Australian government to invest in public Cloud Capital to compete with big Tech and provide a digital Australian dollar for all residents.

• How can Australia navigate the challenges of the new Cold War?

  Yanis Yakis urged Australia to navigate the challenges of the new Cold War by addressing domestic challenges and adapting to the evolving global landscape. He advised Australia to disengage from blind alignment with the United States and foster peaceful cooperation with China to deescalate tensions. Collaboration between Europe and Australia on separate but coordinated Green New Deals was proposed to combat irrelevance and navigate the challenges of the new Cold War. Extreme policy solutions like breaking up big tech companies in the US and banning tech companies from collecting user data in Australia were also suggested as ways to navigate this geopolitical landscape.

• What are the proposed solutions for digitalization and data protection?

  Yanis Yakis discussed various proposed solutions for digitalization and data protection during his speech. He highlighted the importance of creating a public Cloud Capital infrastructure by the government and suggested the concept of the Reserve Bank of Australia providing a digital wallet for salary and payments with no fees. Additionally, he proposed a cooperative enterprise for a government Uber, where drivers retain earnings, and emphasized the need for a digital Bill of Rights to own data and digital identity. Other recommendations included a 5% Cloud tax on digital purchases, depositing shares in a Sovereign wealth fund for basic income, and socializing algorithms in cooperative enterprises to ensure fair practices and protect users.

• What is the significance of investigating issues while providing aid?

  Yanis Yakis stressed the importance of investigating issues while continuing to provide aid to those in need during his discussion. He emphasized the need for a new political approach to address the challenges posed by techn feudalism and the rise of far-right parties in Europe. The text reflected on the decline of social democracy due to the shift of power from industrial to financial sectors, highlighting the importance of addressing these issues while still offering support to vulnerable populations.