From the currency ring to the United States shareboard: see through the capital general hedging

This post is part of our special coverage Syria Protests 2011

This post is part of our special coverage Syria Protests 2011

You may have found that, after blowing the private sector valuation to trillions of dollars, venture capital institutions are finally ready to leave. But their only problem is to get themselves out of the drive。

Let me be clear: I am not accusing San Francisco of illegal activities. I would like to criticize them for their actions, which are extremely immoral and destroy the original social contract of capitalism。

The original agreement

The baby boom generation is the last to eat the dividends of the times。

the united states does not have a european-style system of high-welfare states, which should not have been needed. once upon a time, the social pact was that the stock market was the american welfare system. the traditional fixed-income pension is withdrawn and transformed into a personal contribution account; the pension system is replaced by a 401k pension scheme; social security is used only as a bottom line, and no one is expected to rely on social maintenance alone。

The implicit rule is that every ordinary worker will be a shareholder, and that the dividends of capital increase will go up with the average worker. Even if wages are stagnant and the gap between rich and poor widens, it does not matter because everyone ' s old-age accounts add value behind their backs, and everyone rides on the same train of wealth, which will not end badly。

That is why the gap between rich and poor in the United States is politically tolerated. You can accept that the boss's income is four hundred times your pension account, as long as your assets rise along the same curve. The passive index fund is the purest expression of this engagement. Supermarket cashiers, teachers and plumbers are able to benefit from the market benefits of the value of professional capital extraction at no cost and to share the dividends safely. The capital market at one point or another is a pool of public dividends for all。

However, this agreement requires preconditions: open markets must be the place where the value is truly born; dividends from the rise in wealth must be inclusive of the public; and every additional capital growth can be taken into account by index funds. Those conditions, which had been in place for a long time, are no longer valid。

That's all they stole from you。

When enterprises remain privatized until they reach the trillions of dollars valued, the open market ceases to create value and is solely responsible for delivering value. All that happens in the stock market today is wealth, not profit. Every share of the income that should have flowed to ordinary old-age funds during the enterprise ' s growth has now fallen into the hands of pre-market holders. Following the listing of Figma, more private valuations fell within a few weeks; the Klarna valuation fell by 90 per cent. And that's the end of the system that was designed。

The industry was also aware of the isolation of ordinary bulkers from the dividends, which led to a set of rhetoric: investing in civilianization, broadening investment channels, bridging the wealth divide and opening up private markets to open up the bulk. But the reality is the opposite: they simply give the occupant the right to take over a decade-long top of the private cattle market and to take over the leverage of those insiders who are hoarding at a low price when the firm’s valuation is only one in a thousand today. Private fundraising products for the diaspora are not investment opportunities at all, but tools for high-profile distribution of internal leverage. Even Naval's own propaganda logic confirms this。

(Note: Naval Ravikant, the leading spokesperson for private fundraising in Silicon Valley, is directly pointed out by the author: his advocacy of private investment by ordinary people is a public opinion player who has finished the high-level exit and reaped the mobility of the diaspora

A well-designed out-of-the-field routine

It has always been the first time in a encrypted currency circle to see the harvest。

The Early Encryption Project Foundation holds a large amount of warehouse-carrying coins, the bulk purchasing power of which has long been depleted, and the period for unlocking the coins is approaching, but it is not connected。

They then come up with a way to put these unsuspected lock-in coins in a package of compliance equity assets that would allow traditional financial institutions to enter and buy. The bulk would not have bought the tokens directly and would have turned into a stock, the agency would have bought them in compliance, and the bulk would have been able to access through the coupons. With the smooth distribution of the chips, the United States Securities and Exchange Commission acquiesced throughout the process, the projector succeeded in displacing itself, while the receiver was the target of the harvest from the very beginning。

By the way, Navar was in the encryption ring a long time ago。

When the San Francisco Windwards saw the game work, the model was scaled up directly to the trillion-class capital markets. Private solicitation products for the diaspora are the first route, while NASDAQ changes the listing rules are the second route。

The NASDAQ plan is new: new companies with very few open circulation shares have a five-fold increase in index weights and updated weights at quarterly index warehousing. Take space exploration company SpaceX as an example: the company listed only 5 per cent of the circulation stock, with an overall valuation of 1.75 trillion dollars. Under the new regulations, passive index funds are required to compulsorily buy into the Unit at a volume of $43.8 billion, an operation that will be on the market 15 days later and will not be worn at all by market value. The intra-firm equity locks are regularly carried out, with the precision that they expire at the next indexed node; when the weights are stretched, the passive funds are bought unconditionally, and the insiders are legally released. SpaceX is scheduled to be on the market by mid-year, at the end of the year, with the full set of processes seamlessly。

Indicative funds, which were the umbrella for the resistance of ordinary bulkers to internal capital harvests, are now used as an exit tool. Your old-age savings are being cut in vain by this mechanism。

The encryption circle is fully consistent with the logic of windfall: internals are first held in low-cost markets that are inaccessible to the bulk; assets are added; the purchasing power of the primary market cannot support high-level deliveries; and then a whole new packaging carrier is created to match the other group of funds — pension, passive-indexed funds that rely on rules that are unbridled and price-neutral; and internal capital is successfully released, with the new bulk taking over high-level leverage. The whole process is fully legal because the packaging design itself is in compliance; the regulator is non-existent because this institutionalized harvest is not a violation within the rules。

Final consequences

This is what caused the chaos: Sam Altman was attacked by public opinion, auto-driving vehicles were vandalized and the data centre was subjected to public protests. The ordinary people who have fought have no idea of exit mobility theory, but they feel that the world is divided into two classes of early entrants and laterists, and that the divide is expanding at a rate far beyond the limits of so-called personal struggles, gifts and opportunities。

The elite scientific and technological class has demonstrated by reality that the public capital of the general population is being harvested from its source and is being used to create excessive wealth for the dominant groups。

WEALTH K WILL BECOME MORE EXTREME. THIS IS NOT FOLLOWED BY A NORMAL MARKET REVERSAL, WHICH PRESUPPOSES THAT PARTICIPANTS REMAIN CONVINCED OF THE FAIRNESS OF EXISTING RULES。

Today, popular resistance and conflict have become essentially political contradictions at the social level。