Free Market vs. biological science of the economic ecosystem we live in.
A Free market is one in which corporations, its free citizens have all rights and so do their owners, the ‘stockrats’, the new aristocrats of the modern age, which have as aristocrats in the past all the privileges of a non-democratic society (creation of the language of social power in monopoly, then weapons now money; and null legal responsibility – then aristocratic courts, today anonymous societies). They are the 1%, while the rest, the 99% has two tasks: to work=reproduce machines and vitalize=consume them. And this is what we are indoctrinated to do.
Of course, from a human perspective, the 1% of owners and managers of those corporations profit handsomely and so they will try to preserve at all costs the capitalist system. And they will require to ‘cheat’ the rest of humans that the capitalist, ‘democratic’ free market is the best of all systems.
To that aim financial economists at the service of companies and bankers have crafted a series of myths, ‘damned lies and statistics’ (Disraeli) to justify an ideology of power and a false postulate – that the wealth of a nation is the quantity of money and machines (the objects with higher monetary price) it has. This also fundamental myth of capitalism is false, as the graph proves. The maximal wealth of capitalism happens in ages of war, since weapons are the most valuable metal-memes in terms of informative metal-money. And indeed, before capitalism and the myth of the wealth of nations, was invented, physiocrats, the economist of the pre-industrial age considered rightly the goods of the welfare state, as the goods that created wealth.
And of course, people are easily imprinted with the word freedom, so they don’t even realize the freedoms of capitalism apply ONLY to legal corporations.
The difference between an objective science and a subjective cultural ideology is clear. A science does not promote anything, but merely describes reality. A cultural ideology of power such as capitalism favor certain species, social groups and nations over others. What are the species economics favors? Machines, weapons and money and the 1% elite of bankers, mechanist scientists, military and politicians who most profit of them.
So we must deal here not with the concept of science, but with the concept of biological information – studied in the left side of the web dedicated to the understanding of the ‘higher science’ of General Systems and Organisms:
In essence, in any superorganism, information is censored, limited and biased to help the ruling ‘cells of the organism’. So the body cells are blind and the neuronal cells control all the information of the body. This is what happens in a human social organism. The ‘informative castes’ that control the two languages of social power, money and the law, bankers and politicians, will not let the rest of the population to share with fairness that power. And so they will always choose ‘damned lies and statistics’ that favor their privileges to a real scientific management of history with the laws of social organisms, with a single aim – to get most of the pie, to make money, to increase profits, which is achieved by the ‘law of affinity between metal’ NOT by creating the goods we need to survive, but the machines and weapons of maximal price. This is the bottom line, which explains it all. Metal is biological, organic and evolves together. And yet, there is an entire scientific, economical schools who knows this for centuries – one must say since the first prophets of love said ‘those who kill with iron die by iron’, and ‘you cannot serve two gods, money and the word’. The values of life and metal are different, and so each cater to different species. Capitalism cater to metal and the 1% and so it restricts information of ‘life values’ and ‘goods’ that sustain life and have no price.
What are the species it prevent us from having? What we call here Human Goods, that create what we call ‘the WHealth of nations’, the goods that third world countries reproduce, the goods that people really need, the Goods of man.
In that regard, we can define capitalism and “free market democracies” as societies ruled by company-mothers, which have as only aim to give total Freedom to those companies, to reproduce and evolve machines. Against that Freedom, the freedom of human societies, are systematically repressed. This is however hidden with a series of theoretical myths, and ideological truths, that form the core of the Economical Theory. We have treated in other pages, some of those myths:
We will consider here three myths derived of the concept of freedom: the myths of consume, the myths of free markets, and the myth of free trade. They hide three ugly truths: the fact that consumers are slavish to machines, the fact that free markets are organic systems, perfectly ordered by company-mothers, and governed by stock-markets through digital orders, and the fact that free trade, hides the bio-economical conquest of nations with higher technological power, that colonize and destroy systematically the historic and economical systems of other nations.
The myth of the free choice: consumers which confuse the biological drives of free men (desire of human verbal information, human energy and human reproduction) with the biological drives, and organic elements of free machines. Those drives and organic elements are mathematical information, the language of machines, which men evolve through science, the drive to exist, which men give to machines through the consume=vitalization of those machines, and finally the drive to reproduce which men give to machines through work=reproduction of machines. When we confuse those drives with the free goals of mankind, under propaganda of work and consume, we become slaves of the biological goals of company-mothers…
Once men think that to be free, is to exercise the freedom and rights of machines, it is easy to convince them to become free, by making them slaves of machines. The more slavish their behavior become, the more free they think they are. They live through their machines, no longer through their bodies and minds. Then the transformation of man into animetal is completed. He no longer behaves as a human being, but as an attachment to the machines he thinks he controls. At a certain point in their brain-washing education, such men will have forgotten their own repressed rights. They will consider sex, not a natural pleasure but a sin; food not the prize of a top predator, but something to swallow fast in tasteless restaurants; words, not the language of human truths, but a lesser language to the numbers of machines. So they will despise all things humans, sex, food, words, and despise all humans who still feel as such (ecological cultures, women, children, the poor, the good people who think in ethic terms). The British animetal will despise the Irish and the Indian; the Jewish animetal will despise the Muslim; the American Animetal will despise the Black and the Latino; the Japanese Animetal will despise the Filipino; the Protestant Animetal will hate the Catholic; the Capitalist Animetal will hate the Communist; the scientific Animetalwill hate the priest; the trader Animetal will destroy Nature; the warrior Animetal will kill mankind…
Such transformation of the human mind into the Animetal mind is done through ideologies of machines, gold religions, educational systems, science, market policies, laws, war, repression,mass-media, monetary corruption, scientific theories, and any other mean that influences our ideas and behavior. It is a very old process, which finally culminates in a series of modern economic myths, that are embedded in the idea of a free market: a free ecosystem of machines (the free market) is supposed to provide freedom to human beings, instead of providing freedom to machines.
The Free Market Goals
In the graph, the fact about “free markets” is that there are no free markets, but economic systems organisms governed by privileged organizations called company-mothers, which systematically underproduce welfare goods of minimal price-profit under the equations of capitalism that promote: profit (financial companies) = maximal price-sales (weapons) – minimal cost (software, mass media) and to that aim buy laws to politicos, fire workers, substituted by machines under maximal re=productivity laws and so terraform the Earth into a planet of machines, since METAL-MONEY gives minimal value to life which becomes expendable.
The market is not an abstract concept, nor is it free. It is neither just nor humane in its goals. The market is an ecosystem of machines, products, money, consumers, and workers. It is an ecosystem in which humans evolve products by testing (consuming) them, and by working (producing) them, in “organisms” of evolution and reproduction of machines called “companies”. The market has an obvious biological simile: a company is a reproductive and evolutionary organism, a “mother” form of a product. So the market reproduces products and evolves them. Men act symbiotically toward companies, testing, creating and evolving products. This meant an enormous change in the life and goals of man, that no longer promoted their own goods, Human Goods,but machines and metal-species. Yet as the process accelerates, the mind of man is programmed, to prevent his understanding of his slavery to the market ecosystem of machines. This is done, creating “false information”, fiction (movies), ideologies of machines, and corrupted Darwinian ideologies that deny social evolution and promote competence between men. humans today live the dream of arrogance, “fun” and “entertainment”, promoted by metal-communicators, which has a purpose: to hypnotize them and make them stupid enough to carry their free market goals, to the benefit of machines.
The freedom of company mothers, to create an environment to the image and resemblance of machines is today the main engine of change in History. We call it “freed”=freedom of greed. Sincehumans contribute to it, promoting greed, the accumulation of money, mainly stock-money that represents companies and machines. Two mechanisms hide that freedom of companies to rule our world: the theatrical mask of democracies and the creation of a new system of linguistic power, digital orders, given by prices and money, which men do obey hypnotically. So company mothers, by controlling ht reproduction and invention of money in banks and stock-markets, dispose of a language of power to control all the acts of men, as workers and consumers.
A real democracy, a real free society, where men were free, not a “free market” (free ecosystem of company mothers) implies the control of the language of power -no longer the rhetorical word, but money- by the government chosen by the people, under an ideology that helps mankind (the Human Constitution). The Human Constitution chooses the products mankind needs according to his carbolife nature. Those that are lethal to man become extinct. Only an ethical guidance to economics, can avoid the metal-evolutionary consequences of the irresponsible search for profits that motivate present Company-mothers.
Societies guided by “freed”=freedom of greed, by the search of profits are a function of goods with maximum price, (for example weapons), with maximum evolution of costs, (for examplecomputers), and with maximum reproduction, (for example digital software). For those reasons such societies do not credit Human Goods, with slow replication and slow profits. Stockracies=democracies merely try to increase profits, replicating unneeded machines. They are antidemocratic, and lethal to the humankind.
The higher costs of Human Goods with slow, non evolutionary, non-adaptable systems of mass reproduction makes his production costly, from the point of view of pure profit=credit. In general we can consider that there are two cre[dit]ative deficits:
– Stock deficit, spent in the evolution and radiation of products, mainly elements of complex machines and machines of war.
Since stock deficit is more than 75% of the total deficit, it has more work-consumption power. Stock controls in fact both deficits through the mechanisms of lobbying. So because the criteria of cre[dit]ation in stockratic societies is profit, and the rights of companies and metal-goods cannot be controlled, there is chronic scarcity of human goods, and massive radiations of metal products. Meanwhile the GNP of nations keeps growing because metal goods count in statistics.
We have paradoxes of wealth such as the standard of life of Americans or Japanese (with total cre[dit]ation for metal-goods by the stock market) which is lower in human goods that the European standard. Yet American GNP is higher because it counts its metal-goods (75% of computer and metal mind software, and weapons are produced in America). People are told to be richer when they are poorer, in those goods they can really consume. In an Ethonomy, lethal goods like weapons do not add but rest to the GNP. In ethonomics, America shows a much lower rent, its real human rent, that explains the degraded life of so many Americans, which lack the minimal human goods that most Europeans have, such as Health care, street peace, urban transport and good food.
The Mystery Of Money Creation: use of confusing words, deficits and taxation.
economics hides with enormous jealousy, such injustice: the “monopoly in the creation of money” held by companies in the stock-market. Since the beginning of democracies, “stocrats” in Holland, England, and America fought and won wars to maintain their right to “invent money”, speculating with the value of company-mothers. They hold that right as a military privilege of conquest, against the rights of the population to control the language of social power.
This is hidden also with semantic rhetoric, with the concept of “deficit” a negative word that suggests a bad use for the money governments invent; and the concept of “the stock market rises”, which means exactly the same, but seems very positive.
economics says that the invention of money by government is a deficit that people have to pay. At the same time, the invention of money by stock-companies is not a deficit that people have to pay but “manna”, economical growth.
This lie is reinforced with The myth of taxation: today, as a result of company power, Parliaments have null power to invent money (deficit zero), unlike companies, which have unlimited credit in paper-money (in stocks and bonds). Instead Parliaments get their money from their citizens (taxes) who resent having to support society.
The myth of necessary taxes is also false. Money could be invented and distributed among the people to pay human goods. Today money is only invented in stocks and distributed to companies to promote their products. While governments extort taxes from human beings, to pay the basic needs of those humans. Yet the injustice is even more brutal: after stealing citizens money, governments normally use it in weapons and products of companies.
A nation without taxes is possible. The state could invent money for human goods, instead of asking the people for that money. Companies invent money for their products. Why governments do not invent money for their welfare products? The answer again is that governments do not respond to popular will but to companies will. economists tend to forget those facts. It is not positive for their religion.
The myth of necessary taxes of course, makes the citizen hate the government who collects taxes to finance basic human goods, such as health-care and education. So it comes the myth of the inefficiency of human goods, and welfare states. Since companies seems to create “out of nothing” their goods. Should then become surprised that our world is becoming a world designed by company-mothers and “animetal ideologies” to cater the needs of their machines? Should we become surprised that our free time to cater our lives and needs dwindles, and the time we consume=vitalize, and work=reproduce machines increases?
Shall we wonder that all this becomes hidden by the massive reproduction of misleading information that tell us that to become servants of machines, not of humanity, to consume and work is the best we can do?
We hardly realize we are actually “devolving” our world, our historic ecosystem, because of so much information given to us, with languages of machines, digital images and numbers that we do not understand and misguide our actions.
If we were properly informed with words, our brains could understand better the problem, but part of the way, we are programmed to help the evolution and reproduction of machines, instead of our reproduction and evolution is the way in which we are denied true, verbal meaningful information. Instead we are fed with “fiction” that might be fun, but basically wastes our minds. Documentaries are basically forbidden. Company-mothers of mass-media hate them. It is not truth that people do not want to see “truth”, non-fiction, become rightly informed, read good books. They merely are never given the chance.
The abstract explanation of our world with ciphers further erases ethic al responsibilities. Only verbal thought can explain what free markets causes to humans: wars, extinction of labor,extinction of life. In mathematical terms we only see profits.
Free money for machines, free credit in Stocks have amplified the selfish use of money in the pursuit of profitable war, that allows higher sales and profits to companies of metal goods. Companies of human goods dwindle, and human goods become scarce and expensive. This is covered with the myth of inflation.
Inflation has monetary causes
One of the by-products of such multiplication of stock-money, is inflation in human goods. Today inflation exists as a product of the freed invention of e-money in stock systems that diminishes the value of money, and increases the price of those good which receive minimal investment to increase their production, human goods.
In the XVI century prices grew from the arrival of new money, gold and silver from America. economists accepted this inevitability for centuries in economic theory. Yet today they blame the oil shock (poor nations), and the supposed inefficiency of governments and human goods companies.
The fact is that human goods grow in price because they have no stock credit to promote their reproduction. While machines lower price because they have free credit for their research. Inflation is a process caused by lack of credit in human goods, that limits the goods people need, increases their poverty, and pushes the spiral of money reproduction and wealth of a few stocrats.
Since 1973, the radiation of e-money has increased ten-fold the quantity of stock money. This inflation has caused higher prices in human goods, lower prices of technology products which receive the investment of that money to improve their evolution, and has biased the economy against humanity. The reason such aberration continues is pure greed. Cannons make more money than butter; computers make more money than human education…
The anonymity and lack of individual responsibility of companies and stocks, protected by the law of anonymous societies has accelerated this process.
Technology, weapons and other species harmful to humankind become then the star products to reach higher wealth. Since resources are limited, the result of such bias against investment in human goods, is that we do not have enough butter, but have stockpiles of canons and other weapons of mass destruction.
The Malthus Paradox: The Myth Of Human Goods Scarcity
If you read economics magazines they won’t discuss this. They are written by men who value money at all costs. They cannot afford to show the dark side of economic “progress”. No one will speak honestly about the reality of the economic system. If they did, you might ask for solutions or hold companies and politicians responsible for their behavior. If people truly determined the political decisions of their country, there would be more butter and less cannons. Instead, companies decide the politics of the nations. They pay economists to support the myths of the free market.
Among them there is the myth of “scarcity” and inefficiency in the production of human goods. Inflation, as we saw is part of that myth. The lack of credit for such goods, its real cause.
The first version of it was called the “Malthus Paradox”. Lack of human goods credit provokes famine and overproduction of machines. Malthus however accused the poor of causing their poverty, instead of accusing the massive cre[dit]ation of railroads, which occurred simultaneously with the Irish famine he described.
A human drive of existence -reproduction- was accused of that famine, instead of a machine drive of existence, reproduction of railroads. The system promotes ever since that myth.
The solution to scarcity of human goods is obvious: instead of overproducing machines, we should produce more human goods. Companies that make machines should be limited in production and stock-credit. The time for this is long overdue.
Stock credit biases the production of goods in the world against humanity, which needs human goods with slow processes of reproduction, that require human labor, natural processes that have to be cherished and encouraged. Instead we reproduce machines with machines, and invest money, not creating human jobs, and human goods, but jobs for machine tools, and metal-goods.
The myth of job creation
So another myth intertwined with those myths, is crested to disguise the fact that machine reproduction does not require human jobs: the myth of job creation in metal-industries. Since human goods need human jobs, the reproduction of human goods create with minimal investment many more jobs, that investments in technology and weapons. Yet amazingly enough we always hear that a new investment, such as the one IBM did recently of 6 billion dollars to make chips, will create 1000 jobs! With that money invested in a third world country to produce human goods, you could create a hundred thousand jobs… and a massive quantity of human goods, instead of chips for robotics.
This is the key reason of massive unemployment. Money is invested in sectors that do not create human jobs, because they do not create human goods.
Tourism, health care, education, agriculture, the arts, create at minimal cost jobs. They should be promoted, and could be promoted if the state had money.
All those myths together make the citizen to love the stock-company whose invention of money for free appears to be magical, and beneficial to job-creation and the common wealth.
The citizen is told that money is “not invented” by stocks, but earned by those companies… So it is not deficit. In fact money is invented, either for human goods (welfare state) or for technology (stock speculation). We call a “deficit” the money invented for human goods, only for rhetorical purposes. We hide the “deficit” of money invented for companies in stock-markets, because companies hold too much power to be criticized. The consequences are grave: a paradise of human goods could have been cre[dit]ated merely by inventing money in stock-markets or governments for human goods. Instead, because companies of metal-goods and weapons hold more power than companies of human goods, money is disproportionately invested in technology. The consequence is that the human goods of welfare governments have no credit, and the goods of stock have too much credit. So human goods which are not metallic (housing, education, arts, food, textiles) are not reproduced by stocks and company mothers. They are constantly in short supply, and the services that the government provides in human goods dwindles. The reason for technological investment is profit. Machines give higher sales and profits than human goods, regardless of their lethal effect on humanity.
To avoid the stock racket against human goods to be public, stock Traders and economists, have created complex systems of theoretical work, and complex financial instruments, that hide the process. E-money reproduction against human goods, become so complex when explained in economic terms that nobody understands. Yet the consequences are felt by the people.
The process was understood for a while in Continental Europe where people recently asked: who elected Mr. Soros -destroyer of the EMU- in the first place? Yet Europeans are not the center of the future evolution of metal. It is America, where metal evolved first. There freed is absolute. What amazes the visitor to America is the fact that under TV-press marketing, Americans cheer up when the Dow Industrial Average goes up, and are against the Federal deficit. They fail to realize that the money is not stolen by the elected government, but by those stocrats who treat Americans under man=price[credit]=product with the same cynicism they have always treated them.
The myth of relevant information
Any real information about the workings of stocks is not taught in schools. economics are not taught to citizens, so company-mothers and their political lobbies hide the ways in which money control us. Citizens should be aware of the fact that the fundamental subject of modern life – the way money controls societies – cannot be studied until you get into University. Even there, they will teach you only “economically correct”=machine ideologies. That is the real censorship of modern societies: ignorance of monetary orders. When warriors controlled society their evil nature was obvious. Today because monetary orders are not understood by citizens, our control by company-mothers is barely understood.
Instead, the mass-media focus on irrelevant subjects that distract people. Sports, sexual scandals, murder, films. As a result, we live in a “dream world”, believe in a “virtual reality”. In a recent black comedy of American life, “The Truman Show”, too many humans live and die in a “selected environment” where specific information is fed to them. They go through life without ever realizing what creates, drives and controls their existence.
The activist’s myth
When there are real good people that need to fight against injustice, secondary tasks such as “save the whales”, are promoted to distract them, from more important tasks.
We might limit the rights of obsolete companies such as tobacco companies, top predators of the XVIII century; or the rights of reproduction of mines, top predator weapons of the I World War. Yet the rights of computers and robots, top predators of the XXI century, are not even questioned. Company-mothers would not allow people this. To prevent it, they have enough money as top predator reproducers of the bio-economy to deliver all kind of monetary orders against any criticism to their offspring machines. They can give orders to lobbies in favor of computer-laws (internet subventions, TV chip laws, etc.). They can give orders to military systems (bribes) that will acquire their machines (XXI century “war” budgets). They can give orders to politicians to deliver dramatic wars in which to test their machines (Iraq wars). They can give orders to labor that will work in their companies (salaries). Since they have unlimited credit for their products (stock speculation in technology), they can also give orders to consumers (minimal price of computers) to consume and test=evolve their machines. Today those orders are mainly given by company-mothers of metal minds (computers, telecommunication). So we love and consume machines, and hate placebo, obsolete companies of lesser evil such as tobacco companies…
The fundamental enemy is the robotic company, the weapon company, the computer company. Those however are the untouchables, which give higher profits.
Those facts within Evolutionary theory imply a frightening future: the most evolved machines are weapons. Their companies control our world. Their owners are brain-washed animetals. We cannot criticize them or their machines. Nobody stops their evolution.
So the first conscious machines will be weapons whose aim in life will be to extinct man. The entire economic process seems to be guided towards the creation of such machines, “sentient machines”, robots that integrate metal-bodies and metal-minds, main product of the incoming XXI Century industrial evolution. economics is plainly the science that promotes the extinction of man, and the ideology that prevents mankind to realize of those facts.
So the true question of present stocracies is clear. Why does the market have the right to cre[dit]ate the future of humankind, and not the governments elected by the people? Why does Man and our systems of information (words) and energy (Nature) lack any right of cre[dit]ation of our own future? The answer is: not because this is necessary, but because there are certain humans,animetals, who are brain-washed by myths against their own survival as a species, have used weapons and money to conquer the entire world, and make such world n ecosystem to the image and resemblance of their machines.
Suicide is not a natural act in the Universe. It is an error that is not necessary. Let us consider the final myth of free markets, in economics, the myth of free trade, which hides how animetals conquered the world with money and machines.
The Myth Of Free Trade: Bio-Economical war and Conquest
Weapons re=produced by company-mothers take a nation to the summit of world power. The industrial evolution of weapons expands the economic ecosystem, the free market, either by imitation or “bio-economic conquest”. Essentially, what company-mothers have done is to invade, conquer and destroy all other ecosystems of the world, infecting them with their own networks of energy and information, whose goal and aim is to gather products and animetals in factories, to reproduce their machines.
So whenever company mothers conquer a nation, they establish political systems controlled by financial lobbies, “stocracies=democracies”, that copy the efficient model of “ownership” and exploitation of humans by company-mothers developed by Holland, America and England. All this is hidden by the myth of free trade that hides the behavior of herds of companies that use all kind of mechanisms to take over other economies, with the concept of free trade.
According to such myths, top predator bio-economic nations controlled by company-mothers are considered by economics, modern, just and peaceful nations, which do not conquer other countries. They “civilize” them, since metal-wealth=progress.
Conquest through financial networks and free trade, is however the modern system of provoking war and winning over ecological nations and ecosystems. To understand the meaning of “bio-economic conquest” we have to question economic rhetoric on the eternal goodness of trade and products.
The key to economic rhetoric is the concept of ceteris paribus analysis: to consider a single cause to any consequence. So economists choose a good cause, and hide all other real reasons and negative side effects of economical policies and pro-company laws.
Biased information is at the heart of the constant deformation of truth which invades our societies. It started with the press. Only the criminal acts of the enemy are shown. Only the good effects of trade are shown. Only the very few cases in which the other nation improves the life of its citizens are shown. Only the upper Animetal 1% of population, who profits from using machines have rights to talk. Only the predators speak. So when a nation conquers bio-economically other nation and uses as internal allies its elites, those elites speak of progress.
In India, the elite of the Congress party talked of progress. The peasants were out of work, the mills died away, the Bengali made tea and could not eat rice, and 20 million died. Yet the Press showed the tours of the marahas… We cannot comment on all the ceteris paribus analysis of animetal ideologies. In economics they are the rule. Mr. Smith, Ricardo, Malthus and all other “founding fathers” of the ideology that brings us towards extinction use them constantly. The fact is that to understand the biological reproduction of products and modern war, we have to describe those processes in biological terms. Otherwise we will be manipulated by what logicians call ceteris paribus analysis. Analysis that choose the causes of reality, focusing in single causes that favor in economics the point of view of machines. In this manner by hiding 3/4 of the truth, consume of machines, invasion of nations, extinction of nature, becomes good.
In fact, modern free trade has always been defended under a ceteris paribus argument invented by Ricardo, so famous we cannot resist to uncover its real truth.
Ricardo says that trade is good. The argument goes as follows: “if, let’s say, England produces nails and Portugal produces wine, both will have overproduction. If then England sells nails cheaper to Portugal and Portugal sells cheaper wine to England, both will profit with free trade. Thus free trade is good”. It seems perfect. You have nails, I have wine. I give you wine, you give me nails. Let’s trade. Yet this is a single cause, rhetorical argument that studies only two products between nations with comparative advantage in each product. In that case obviously trade profits both nations which receive the cheaper deal for each product. Yet that is not reality, but an ideal, ceteris paribus, single-product-cause situation.
The reality it hides is the fact that between two modern nations with a mass of products -most of them machines of metal- unless we distort reality with ceteris paribus analysis as Ricardo does; country A in a higher technological age, will have 75-90% of products with comparative advantage, over the equivalent products of country B (either technologically superior, or made with lower costs by technological machines). Country B will only have a few agricultural products to sell at comparative advantage, such as the Portuguese wine. So it will have to pay with Gold, and its financial resources all other products. Hence, free trade will ruin country B in most industries, and absorb all its gold, breaking its financial system. Soon it will be unable to pay to country A. Its people will have no jobs. In a last attempt to survive, it will sell its land to the people of country A.
Those people will reconvert the now ruined nation to an agricultural system to cater country A’s needs. Yet that will not be enough. Sooner or latter it will default payments. Then country A will give country B loans in “null-cost top predator money-paper”, with so high interest that the rest of the country will be sold to country A to pay the interests on that worthless paper. Country A will then own country B. If needed it will send its army to take over, “to make justice and get paid”. If not, it will merely maintain a corrupted caste in power, and the economical wealth and main industries and land of the once happy ecological nation, in the hands of the invaders. What will happened to the people of the conquered nation, spoiled of their land, exploited in the new plantations and mines to extract gold and industrial crops, killed by the weapons which is the main product sold in free trade, suffering hunger without their traditional industrial jobs in clothing industries?
They probably rebelled in a few wars for survival, and the A-nation army or the 1% caste of animetals that the invading economical nation controls, within the B-nation will kill them, crush the rebellion, and keep their exploitation. Often they become then a commodity in itself, as slaves. They are the real wealth, human wealth of nations who suffer with free trade, who become property or die away.
Let’s in fact look at the historical case that Ricardo used. Did Portugal become ruined by its trade with England or did it improve its economy, selling wine for nails? In this famous argument we can look at what really happened since both nations made an [in]famous agreement of free trade. Portugal sold only wine to England, the famous Porto. It had only that single agricultural product with comparative advantage with England, while England sold every industrial product to Portugal. The Portuguese wool and iron industries collapsed. Portugal became the most underdeveloped country of Europe, despite having the richest empire. To pay for the goods of England, all the gold and diamonds of Brazil had to be sold; they ended up in London. London took over Brazil. It even put higher taxes to Portuguese goods in Brazil than to English Goods. When Portuguese complained it promoted the independence of Brazil, backing the Prince of Portugal that wanted to become emperor of Brazil. Then it colonized Brazil the same way. When Portugal was in ruins and Brazil had no more gold, trade plummeted. Brazil was then reconverted to cater with his agricultural products (coffee, rubber) the British industry. It was obliged to take loans on Pounds at astronomical rates (most commonly over 20% of annual interest). Soon the British owned Brazilian best lands. Brazilian animetals educated their sons in London. Brazilians died of hunger. When America took over the same process continued with all South-America.
This is the meaning of bio-economic conquest: a nation absorbs all the Mv-financial wealth of other nation, until the less technological nation is exhausted, its monetary blood gone, and the country in ruins. Then the conqueror abandons the country and looks for the next prey. Or merely takes over at minimal cost, over a ruined nation, a corrupted elite, and an exhausted population.
Ricardo’s Paradox was born as a fundamental tool of rhetoric to explain the expansion of the British empire, that had just annihilated the entire India in its original culture.
The spoil was so brutal, the indifference of English to that destruction so appalling, the deaths they caused by hunger so many (the Bengal holocaust of peasants that had to make tea instead of rice was only the first of many), the plummeting of life standards of peasants and artisans so overwhelming, that British ideologists needed a good excuse, when some of that information leaked.
What truly amazes today is that every single text of economics still carries as one of its proved “truths”, Ricardo’s ceteris paribus argument; when it is a self-evident lie. It shows how well controlled is the system of ideas of mankind.
India lost also all its industries, its economic wealth, and had to sell its citizens as ‘wage-slaves’ for plantations in other English “free trade nations” (colonies with free trade between them and England). So happened to Africa, even before, in the XVII and XVIII Centuries, once the gold of its mines was exhausted. Africans became now the “free trade commodity”.
The same system was applied to China which lost all its silver, paying loans to make railroads, with British steel. Today it is applied to Africa and East Europe and South-America, whose people are in total ruin, so they can pay the internet machines of their elites.
However, this is less evident today, since national governments are no longer needed. Company-mothers long ago jumped over national government and act as a pack of wolfs, by themselves. They create associated companies within the other nation, which do the job, governments and armies did in the less sophisticated systems of the past. Those companies camouflage as local companies, with secretive laws that make share-holders anonymous.
Today once the monetary system of the nation is ruined, the invading nation keeps trading its control, by buying out internal industries, that belong to those multinationals. Most world nations belong today to European and American multi-national company-mothers. Yet Ricardo’s argument on the justice of free trade is still in all Economics books. That is the true nature of economic ideologies and modern censorship. Ideologies of money and machines pass for real sciences, as human religions were considered in the past the absolute truth. At least religion in the past was subjective truths that favor our survival. Capitalist is made of metal subjective truths that favor the survival of machines and money. It is a go[l]d religion, a religion of machines, not a human religion.
We could go on and on, and we have hundreds of never published pages of detailed studies of all the damned lies and statistics that today pass as scholar truths in Universities of economics, but that will not convert economists and this web is not really for them. I believe the previous examples shows how right was Mr. Owen, one of the first and few economic scientists when he said that ‘ saloon economists here in London (the like of Ricardo, Malthus and Say), are busy trying to find the most complicated arguments to defend the rights of the owners of corporations and limit those of their workers.’
The brilliance of capitalist economists have always been indeed to pass what is an ideology of power and slavery by a science of ‘freedom’.