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Of loose cannons on the world’s deck

Of loose cannons on the world’s deck

Back in 1998 as a part of a Masters in International Politics, I wrote an essay on monetary unions and the future of the Euro. At the time convergence trades were all the rage and the soon-to-be members were busy pretending they were complying with their Maastricht treaty obligations. The essay’s conclusion was that the Euro would not long survive its first test.

History clearly demonstrates that a monetary union will fail without a common political will. The Euro has never achieved political union.

So the Euro stumbled through the private debt crisis of 2008 on the back of central bank largesse. This lead to a global socialisation of the massive debt binge that had accumulated through the mortgage and credit markets. But while the ECB. like most its central banking peers, was busy engorging its balance sheet there was still no consolidation of debts, each nation-state remained it own issuer.

So now we are approaching the next debt crisis – a result of 10 years of zero interest rates where the private sector has been encouraged to re-leverage, valuation multiples are back to all-time highs, and now the central banks are carrying impossibly large balance sheets. The sensitivity of the system to rising interest rates is acute.

And we have a Euro-land dominated by one very large creditor and quite a few large debtors. To date, the creditor has won out, forcing ‘internal devaluation’ on their partners. But the next stage of the sovereign debt crisis is unlikely to play to that script. You can already see capital flight out of Italy through the Target2 balances. The only palatable way out of this mess is to inflate your way out of debt – and the Italians have the keys to that locker. Beware the vagaries of capital in a hurry to find an exit…

During this new stage of the depression, the refugee gold and the foreign government reserve deposits were constantly driven by fear hither and yon over the world. We were to see currencies demoralized and governments embarrassed as fear drove the gold from one country to another. In fact, there was a mass of gold and short-term credit which behaved like a loose cannon on the deck of the world in a tempest-tossed era.

Herbert Hoover, Memoirs, Volume II, Chapter 7, page 67

Tech and design workers making moves

Tech and design workers making moves

A surprisingly well attended meeting at the Trades Hall last night given the low key publicity. Developers, designers and folk from 5 different trade unions were there. Interesting perspective on the potential power of developers to influence the shape of new tech to meet privacy-by-design and other yet-to-be-defined principles. Only one developer raising the blockchain flag as a solution in waiting. But perhaps most encouraging, the trade unions showed real willingness to engage on the issue and explore how things like platform coops can help change the balance in favour of workers from all industries – particularly designers.

When tech meets organised labour then the pendulum starts its swing back from current economic extremes.

A meeting for workers interested in collective action & unionism

We believe in workers’ rights, social justice, diversity and equality. We want to challenge corporate control over our technology.

We share a vision for an inclusive & equitable technology industry. We want to collaborate with workers and friends to build tech worker power, organise on workplace issues and create a space for educating ourselves and exchanging ideas.

Technology for the many, not the few!

 


 

When algorithms rule the world

When will homo sapiens be usurped at the top of the food chain? Or has it already happened?

The transition from big data to algorithm-driven AI is happening frightening quickly. In fields from medicine to movies to mass surveillance, smart machines have already proven to be quicker and more reliable than their human peers. It won’t be long before they know us better than we know ourselves…

The need to align data management with our collective and individual interests is urgent. Left to their own devices, government and private capital are ill-equipped to balance the common good with individual agency. We need to take ownership. Co-operative governance and ownership of the technologies that underpin the algorithm economy are key…