Can basic income and good karma/credit system provide a way to cope with AI’s automation?

In 2017, a lot people and various parts of different countries are talking and experimenting with basic income.  Automation — comes naturally and intelligently through artificial intelligence — is the new thing that has gotten people worried.  Some people argue that AI’s automation will replace human beings with robots/programs in all sorts of jobs.  Dumb automation probably has already replaced humans in many cumbersome, repetitive jobs/functions.  Intelligent machines/programs through AI can probably replace many white collar jobs already.  When too many people are out of work, this could become a huge bother for many powerful people who carry important positions in our society.  Displaced people would want to be able to survive and strive in a society in which they’re no longer productive, but this could mean standing up against the factory owners, corporations, and even the governments.  If not careful, a world of full automation could mean a bloody revolution.  Thus, basic income becomes an urgent question for many leaders in any country in our time.

Nonetheless, in the West, we have a thing that was being taught since the fall of Soviet Union is that communism has failed utterly.  We look at China as if Chinese communistic society is the new capitalist society.  How can basic income fit into a Western society in which communism has been taught to be disgusted upon?  After all, basic income is about rationing, splitting equal income for everyone in a single society.  Isn’t communism is also about rationing and splitting equal things for a community, a society, and in biggest case a country?  I guess, we could argue a mix of basic income with capitalistic values won’t lead to new communism, but it could morph into an entirely different beast.  I guess we should ask, can a strong supportive basic income be an uplifting element for the despondent citizens?  I guess we should consider the humming capitalistic tunes of the middle class in this situation.  Can basic income give the despondent ones a chance to reach the middle and eventually the upper classes within this beastly creation?

Perhaps, basic income may not be the only solution.  Perhaps, we require many more parts of a larger, more creative solution in order for us to tackle the AI’s automation revolution.  Imagine in a society in which doing good things promotes good karma, and this karma translates into real monetary credits.  Can this route take us to a Nirvana?  Basic income to support a crumpling foundation, and on the top of this reparable foundation we decorate it with good karma.  The double edge sword of a good karma/credit system is that the implementation of punishments, punishing the good people who have bad karma/credits.  Then the question should be asked such as what could be the punishments for the people who have bad karma/credits?  This won’t be a good thing if new harsh punishments are there to wreck havoc in lives of good citizens.  It could literally lead to a society in which looks very much like a Nazi one.  Perhaps, karma/credit system should be used for the implementation of a positive, credit/monetary system only and not much more, and no punishment should come along with this very system.  This way, good folks won’t be affected by stupid punishments.  Just imagine good karma/credit system provides even more basic income on the top of the basic income?

I couldn’t let this go. Imagine a society in which isn’t too different from a fantastical Star Trek’s one, because a replicator alone could conjure any item out of the thin air.  Perhaps, a replicator could replace basic income and money and credits altogether?  If such a society and technology exist, this could mean the end of being desperate in a more intelligent universe.  Perhaps, if this to occur, people won’t have the need for ancient money/credit system, because a replicator alone could conjure up anything.  It’s magical.  Anyhow, the summation of all is that an interesting time is upon us, and AI’s automation may be replacing us humans in all sorts of jobs.  The old system isn’t providing an answer to how to create new jobs in an AI universe.  A jobless society would be very different in nature, because people need money to survive.  Without providing jobs to a hungry population, a society could face an upheaval of all sorts.  Can basic income and good karma/credit system provide a way to cope with AI’s automation?

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Cashless Society Encourages Monopoly Money

I’m not an economist, because I’m a nobody.  Thus, my experience in trained economics is a zero.  As a human being, I do have opinions.  By staying informed with everyday experiences, I do form opinions on facts that, I think, are real.  From these opinions and ideas, I can draw some non-expert conclusions.  In fact, right now I like to talk about one or two conclusions I have on cashless society.

I think cashless society is wonderful for governments, bankers, and whatever associations that have control over a society, because electronic traces are available 24/7.  What is scarier is that anybody in the position of power or any hacker who has enough knowledge can just shut you out of a cashless society by changing your electronic numbers.  This is very real, because without any cash on hand, your only option is to rely on the credit system and other electronic monetary forms.  When such a system cuts you out, you are basically helpless and powerless and cashless.  In such a situation, surviving becomes impossible!

Cashless society can also be wonderful for you, but as long the illusion of real efforts and real transactions are actually taking place.  I think bankers can just enter any number of money into a bank account for just about anybody, and the money will form instantly by the electronic means.  You could say money seem to be appearing out of thin air!  Growing on tree, or however you want to phrase this illusion.  I think cashless society will enhance this ability by an infinite time more.  What do I meant by an infinite time more?  Cashless society won’t use cash, because cash cannot be legal.  Thus, cashless society is all about the electronic, monetary numbers, and anybody who has the authorization to form these numbers can just make them out of nothing.  Or they can just delete these numbers whenever!

What makes cashless society humming brilliantly is the illusion of convincing people that real efforts and transactions are actually taking place.  Let’s say, if a doctor who got paid very well by treating his patients in exemplary manner would probably quit his job if the bank could instantly form any amount of money, into the infinity, without any effort.  Why even bother to go to work when you can just go to the bank for an easy loan, and the bank won’t care if you can pay the money back or not since the bank can form infinite amount of credits.  In the cashless society, if the bank isn’t going to lend you any credit, you have to acquire these credits by working for a job or doing whatever to acquire more credits.  But will you be working with a happy smile on your face knowing the bank can form any amount of credits out of thin air?  Demand and supply formula won’t be a good gauge anymore in cashless society, because unlimited amount of credits can flood the system forever.

Even better, why don’t you just form a bank where you, yourself, can electronically form infinite amount of credits?  Wouldn’t this make you an infinite-air?  Why would you bother with taking out someone else’s trashes and problems for a wage/fee when you can just hallucinating yourself with infinite credits of your own bank?  If everyone is into this, then the system got a problem.  The problem is not lacking of credits or money, but the problem is about — nothing will ever get done.  Because nobody will give any real effort in any exchange since credit is created out of thin air without any real effort.  This means the producers see no reason to produce products, because the infinite bank is giving out easy credits freely.  Basically, why produce when you can obtain free credits, right?  Without producers in the equation, the consumers won’t have anything real to consume.  The whole economic system would become meaningless, and so the system collapses.

I guess, the only real demand for cashless society is the demand for more credits, and the easy credits are plentiful available so the demand for more credits could be fulfilled.  Of course, the government and the powerful bankers can just create laws that make the illusion works for awhile.  An example would be you have to pay back the loan you want to borrow, or else you may suffer a consequence of being shutout of the cashless society system.   Knowing being shut out, it means you are not going to be able to buy the most necessities such as foods, and so you know you’re doom for good.

Nonetheless, in a cashless society — a shutout mandate or whatever rules a cashless society wants to impose on the people — the atmosphere can become very toxic for the powerful people.  How come?  If a society can only get poorer while the banks have unlimited amount of credits, the poor people will see this as the greatest injustice of all time.  This means if there is large amount of poor people who are thinking this way will have a king’s head rolls.  Thus, a cashless society needs to uphold not only the illusion of real efforts and transactions, but it also needs to uphold the income equality for the whole society.  As long the majority (e.g., 65%, or 75%, or 80% of the general population) is wealthier than a small percentage of the whole population, then nobody would be able to form a big enough movement to have a king’s head rolls.

If you’ve read thus far, I think you would probably have a notion that cashless society is the same thing as a credit society we’re living in today.  I would agree, but cashless society is more draconian since it outlaws the tangible cash.  With cash in the equation, people can still feel that transactions are real, because something gets sold something gets paid with hard, cold cash (i.e., it’s real).  Even with cash in the system, it’s all about maintaining the illusion that credits are properly distributed.  Taking the cash out of the current credit system to make a complete cashless society, the illusion of proper distribution and exchange will be harder to uphold when the going gets really tough.  Few good examples would be unemployment goes skyrocket, income inequality goes skyrocket, debts go skyrocket and so forth.

Of course, you can argue, when the going gets really tough, with cash in the economic system or not, the whole bubble is going to pop and a king’s head rolls anyway.  Nonetheless, with cash in the system, at least new problems of cashless society won’t be introduced to the general population.  Once cashless society is in place, some traditional problems plus new problems are going to continuously rain down on the whole society, especially when people can be cut off from the system altogether since only credit-like means are acceptable and real.

Cashless society would definitely help the controllers to see the nuts and bolts of the whole system more clearly, because electronic transactions are going to leave electronic traces behind.  Nonetheless, in bad time, this would aggravate people rather easily, because they feel their privacy are being invaded all the time.  When it comes to money, privacy matters!

I think people won’t mind sharing who they’re having sex with, but when it comes down to money people are not that willing to share.  Thus, money is rather private!  So, cashless society is going to have a problem of allowing people to have some privacy with their money.  For an example, if everything is so connected in the cashless society, everyone would know how much credits you have available.  This would mean your local pizza parlor would refuse you a slice of pizza for they know your whole worth is zero or negative credit.  In a cash society, you can just hand over the cash, the local pizza parlor would careless if you have any credit, and off you go with a delicious slice of pizza.  In a cashless society, your shame would be revealed instantly.  Even worse, you will not be able to fill up your stomach when nobody is going to accept cash.  After all, it’s a cashless society!

In summary, I think cashless society can make bad economics worse, because new problems would be introduced to the general population.  These problems may become apparent rather quickly when the economy goes bad.  An example would be people may become less cooperative in making a living, because there are less incentives to encourage people to earn money the hardy way.  People may try to scheme the infinite credit/cashless society to make money the easy way, and economic bubbles would form into gigantic ones till they burst and collapse the economic system altogether.  Instead of really solving the problems of society such as poverty and whatnot, cashless society can only enhance the paranoia of lacking privacy.  Money is a very private matter to many people, and so these people are not going to be very happy about having to live in a cashless society when every known businesses and services out there know how much you are worth 24/7.  At least with cash, people can hide their shame of having less worth.  Basically, any society with a lot of insecurity can collapse, and so the same goes with cashless society.

 

War and Politics Are Money Making Machines

When core commodity prices such as oil are going down, logically, anything else that depends and adjusts to these commodities would become cheaper too.  Let’s say oil prices are going down big time, and so the gasoline prices should be plummeting too.  Let’s say oil prices are going down big time, foods and transportation costs should also plummet too.  With lower oil prices, companies that produce products should see cost reliefs (e.g., transportation, commodity prices, etc…).  Basically, any price of core commodities plummets should bring the prices of the related products and services down.

As we speak, world politics and agenda have pushed the prices of oil way down.  Not too long ago, I remember oil prices were near $100 price range.  Nowadays we are seeing oil prices go under $40.  I don’t think we are seeing the natural cycle of supply and demand is at work for oil here, because world politics is dictating the terms.  Sure, many countries are pumping more oil out of the oil wells even though the oil prices are being suppressed at a super low level, but these countries are doing so to manipulate the world’s oil market in an artificial supply and demand way.  Normally, the world market should be the factor that influences the supply and the demand curves.

Since oil prices are plummeting way low in unnatural manner, any small positive news could really affect the oil prices.  Oil prices are also being stressed out by the advances of green energy technologies.  As the present keeps on pushing for a greener future, oil will have to compete with various green energies for market share.  If the politics stays away and the world market gets to decide, prices for oil and other energies should balance out according to the supply and demand curves.

It’s worrisome to see that countries are not on best of terms with each other nowadays.  Middle East is still experiencing great violences.  Europe’s economic might is in further decline.  Elsewhere is not doing too good as the whole world is experiencing a recession or depression, depending on who you would raise the topic with.  Cheaper oil could also mean oil is more accessible for stockpiling.  Great oil stockpile means instigating war or prepare for one is rather convenient.

If war breaks out now, prices of most services and commodities will shoot up.  This too isn’t natural since war conditions would push the natural market forces aside.  Both politics and war would be the major factors in manipulating the market prices, and I surmise that people who can easily wield these factors will be able to make a lot of money.  This is why we keep hearing someone would say something along this line, war is money.  Well, politics is also money!  I think war and politics are money making machines.

What Is The Future Market?

Don’t you hate to hear the future market this and that when you read or listen to the news?  Well, if you understand what future market is, you probably don’t mind hearing news on it.  Some people though, they may not know what the heck is the future market.  Thus, future market seems like a big mystery that will forever be a mystery into the future for these people.  Nonetheless, if you are one of those people who wants to understand what the future market is, then just check out the video right after the break.  In short though, future market is gambling, because you are betting on a contract price that represents for whatever it is in the market.

United States’ Stock Market Plunged Triple Digits In Past Two Days, Fears Are In The Driver Seat

I don’t play stock anymore, because I’m suck at it.  United States’ stock market plunged a thousand points, more or less, since last Friday and this Monday, and the whole market looks incredibly shaky now.  Nonetheless, I remembered how we complained the market was so unregulated in 2008 or so in which contributed to subprime crisis that spilled into the whole market, but now we are complaining that the market is being controlled by China which may contribute to the plunging of stock markets around the world.  I’m wondering, which method is the correct method to let the market runs wild?

If you have followed the news, China’s stock market has been hammered very badly by selling, and so people suggest that the fear in China’s stock market has spread to the United States and elsewhere.  This certainly has some truth, I think.  After all, if people invest in China as the stock market there is plunging, it’s understandable that they may sell in the United States to recover some physical assets such as Dollar.  Nonetheless, this may not be true since nobody would know how China’s stock market gone wrong would really affect the United States.  It’s curious to me to see China’s stock market is affecting the United States’ stock market too.

There is another argument which proposes that China’s Yuan devaluation contributes to the stock market plunge in the United States, because United States’ corporations and companies would be less competitive in China, elsewhere, and at home, thus contributing to the selling of shares in the United States’ stock market.  Nonetheless, nobody would know how much fear would be driven by Yuan devaluation.  Thus, it is curious to me to see people are selling shares in the United States as China devalued Yuan down to 4%, more or less.

Of course, people may think Yuan devaluation would not allow the FED to raise interest rate, and so it would be super bad to see the FED may raise interest rate.  I think this may have some effects on how people manage their shares in the United States’ stock market.  Nonetheless, the general public isn’t too sure about when the FED would raise interest rate, but the FED had said that they want to raise interest rate.  Perhaps I’m missing on reading several news articles or so, because I didn’t see the FED had come out to calm the stock market down in term of relieving the fear of interest rate raising.

The stock markets around the world are evermore interconnected somehow, and I don’t really know how one country’s stock market could affect another, but I guess it’s all about the economic conditions that drive the fears, speculations, and so on.  We are living in an interesting decade as not only economic conditions are the fears but we also have around the world, small scale conflicts that may spill into much bigger conflicts kind of fear.  Furthermore, we have oil prices which has plunged below $40 per barrel.  The near term outlooks of the stock market and world economy are not really that optimistic.  I guess we will see more actions coming soon in coming days.

Dr. Ron Paul On China’s Currency Devaluation And Currency War

Dr. Ron Paul warns more bad time to come as China is now beginning to participate in currency war.  Today, as it’s happening now, China devalues its currency to 1.9% weaker than the pegged Dollar (USA) (according to WSJ).  Market in the USA goes negative, and the world is actively watching China’s movements.  Dr. Ron Paul thinks what China is doing cannot solve China’s slow down in the long run, because the market eventually will force other countries to do the same thing which negates the benefits of what China is doing now.  Since China is devaluing its currency as we speak, can the FED in USA be able to raise interest rate?  Is China sending a message to the IMF and USA for not including China’s Yuan in SDR basket thus far?  How far China will devalue her currency?  Anyhow, check out Dr. Ron Paul’s message on China’s currency devaluation in the video right after the break.  Enjoy!!!