The WWII era with its postwar capitalist bubble is now extinct.
Capitalism is dead!
The 100-year-old edifice of capitalism is cracked. It finally began its death throes in the last quarter of 2008 with the great lurching and cascading collapse of the global tower of capital.
The whirling, howling, cacophonous wilderness of the global marketplace has taken its inevitable toll on the capitalism system–with its ferocious fads, toxic wastes, and vicious moods, its callous explosions and cruel darwinian extinctions the global marketplace has put capricious end to the blind and righteous rivalry between spoiled and cosseted CEOs in clueless medieval double-entry boardrooms.
The CEO Delusion
In Richard Dawkins book, THE GOD DELUSION, he shows how the ancient belief that there are omnipotent GODs who are on-duty 24/7 and are busily and conscientiously intervening in worldly affairs is a medieval pre-scientific belief and is very likely to be also a mental delusion.
I have observed, for the past 40 years, that the same may apply to CEOs.
The capitalist belief that CEOs can be relied on to ensure the survival and growth of the enterprise is also a delusion and one that is not supported by the evidence (Welch, Jobs and Murdoch are the kind of exceptions that prove the point). This belief has also proven to be a very costly leap of faith for shareholders, employees and customers alike.
Cost of CEOs
When you consider the global cost to shareholders of CEOs over the recent era, the ROI has been a dramatic disappointment of Shakespearean proportions.
Intellectual Capitalism – IC
I have written about my belief in Software For Your Brain that we need to go beyond capitalism to intellectual capitalism where the brainpower of the stakeholders–shareholders, employees and customers–is used to lead the enterprise.
Sack the CEOs and harness the enterprise brainpower to grow the business!
Shareholders around the world have seen extravagant expenditures of their wealth squandered by loitering CEOs with their arm-waving and talmudic reading of balance-sheets and P&Ls, like the obsessive pre-scientific study of entrails, when less than one CEO in a hundred could give an intelligent, educated account of what strategy it would take for their business to survive in the fast-changing, darwinian environment of the next decade.
Like the Theory of Communism, which lasted 70 years before it became obsolete, The Theory of Capitalism is dead. Bereft. Discredited. Empty. Depressed.
2008 began the global assault on capital which has so overwhelmed the market that we find ourselves in an economic war involving every national economy in both hemispheres. A war which I’ve called WWIII: The Great War on Capital of 2008.
“Economic Pearl Harbour”
Even the guru of capitalists, Warren Buffett, admits the US economy has “fallen off a cliff”, describing the crisis as “an economic Pearl Harbour”, as concerns spread about the US administration’s fitful attempts to halt the collapse of the US banking sector.
The leading investor, an informal adviser to President Barack Obama, whose financial diagnoses are widely respected — although he conceded he failed to predict the severity of the crisis — said the economy had come “close to the worst case” imagined, and that recovery would be slow.
Mr Buffett, one of the wealthiest capitalists in the world, said the entire banking sector had been hours from collapse in September, and would have imploded without the $US700billion ($1trillion) Wall Street emergency bailout.
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(This is an SOT preview. This article will be published in the April edition of Australian Anthill magazine).
… Also check out this Catalyst video … “Risky Business” …