in/compatible systems
Stefan Heidenreich (de) & Ralph Heidenreich (de)
the money machine.
incompatibilities of money creation, trading schemes and network power
without computing and digital media, the financial sphere could never have become the monster it is. The effects of new media set in at three points. the creation of money is by itself a simple routine of book-keeping. but thanks to so-called financial innovations the banks extended it to a ponzi-scheme of enormous size.
there are estimates that computers and algorithms account for more than 50% of trading. reliable data are difficult to achieve, as conventional market places have diversified into high-frequency casinos and so called dark pools.
and last but not least, we witness in fornt of our eyes, how the smaller institution of the state surrenders itself to the bigger network of the banks. the transition of sovereignty is marked by the phrase "too big to fail" which applies to almost all globally active banks.
all these schemes amount to the core incompatibility of how to snythesize the virtual profits required to keep the money machine alive.