I didn’t enjoy this report at all, but thanks for posting, it is good to be aware of it.
To me, at best, the outcome of us taking the Bank’s opinion on this seriously would be a massive step backwards in human progress, which at worst, could have us all ending in war, the real armaggedon.
The truth is we’ve been doing things wrong all along using capital, and I don’t mean that in any partisan sense, or even to assign blame.
We have all been under the same misconception of physics.
It is becoming apparent that wealth (generating value), at its most fundamental level, is not a static thing. It does not stand still with time. The wealth put onto our planet from its source, the sun, in terms of the number of photons deposited, never stands still, it is always accumulating with time.
And yet, we claim value in balances of things which are static results of activities, like gold, Bitcoin, etc.
Truly valuable things change over a period of time, like the number of photons emitted from the sun.
So things like activity, or movement, or rotation, are all valuable.
When the activity stops, they no longer have value, in the same way that the sun would no longer have value if the photons stopped.
To claim otherwise is almost like a kind of theft, since that has the result of claiming some of the value of photons accumulated at time B, for only the activity carried out until time A.
Yes, crazy, but true.
That practice, we can now see, is the fundamental mechanism of inequality.
It is what gives the first to possess anything static, the unfair advantage.
It is the same mechanism that keeps the value of Bitcoin ahead of imitators trying to compete with no change in functionality.
Banks have done very well by it, amongst others.
We’ve all profited by it, more or less, at some time or another.
It is the reason why we are perceived as more wealthy than our children, despite them being a new improved version of us.
It is why kings and queens and colonials of all kinds are still perceived as the most wealthy, even as the world progressed around them.
But now, thanks to the internet, and Metcalfe’s law of networked value, one of the true measures of human value, by which all individuals are becoming aware of things as above, we are gaining a new global awareness of how things should really be, and the banks and others who originally drove globalisation in search of more profit, are suddenly getting cold feet, as they too get a glimpse of the truth.
Too late, the cat is out of the bag.