This Machine Kills

We continue our deep dive into a provocative, radical blueprint for democratizing finance and taking control of the economy. We detail Omarova’s detailed proposal for turning the Federal Reserve into the People’s Ledger. On the liabilities side, we discuss the universalization of deposit services (aka FedAccounts) and the elimination of private deposit-taking by commercial banks. On the assets side, we discuss the creation of a National Investment Authority which would allocate capital to socially beneficial, large-scale projects. Together this reformed Fed would drastically reduce the complexity and volatility of the financial system, while democratizing access to financial services, while also distributing the flows of capital to worthwhile investments.

••• The People's Ledger: How to Democratize Money and Finance the Economy | Saule T. Omarova https://scholarship.law.vanderbilt.edu/vlr/vol74/iss5/1/

••• Socialist Investment, Dynamic Planning, and the Politics of Human Need | Aaron Benanav https://www.tandfonline.com/doi/full/10.1080/08935696.2022.2051375

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Hosted by Jathan Sadowski (www.twitter.com/jathansadowski) and Edward Ongweso Jr. (www.twitter.com/bigblackjacobin). Production / Music by Jereme Brown (www.twitter.com/braunestahl)

We dive deep into a provocative, radical blueprint for democratizing finance and taking control of the economy. A recent paper by law professor – and a favorite thinker of TMK – Saule Omarova offers a detailed plan for how to reengineer the Federal Reserve, totally restructuring its balance sheet, and “redefining the role of a central bank as the ultimate public platform for generating, modulating, and allocating financial resources in a democratic economy—the People’s Ledger.”

••• The People's Ledger: How to Democratize Money and Finance the Economy | Saule T. Omarova https://scholarship.law.vanderbilt.edu/vlr/vol74/iss5/1/

Subscribe to hear more analysis and commentary in our premium episodes every week! https://www.patreon.com/thismachinekills

Grab TMK gear: https://www.bonfire.com/store/this-machine-kills-podcast/

Hosted by Jathan Sadowski (www.twitter.com/jathansadowski) and Edward Ongweso Jr. (www.twitter.com/bigblackjacobin). Production / Music by Jereme Brown (www.twitter.com/braunestahl)

We’re pulling the ripcord on this book. After slogging through five chapters, we discuss why this book just isn’t working for our needs with the TMK Book Club and why we are abandoning it. Despite it being an influential book, which is squarely in our interests, its approach to describing the topic makes it difficult and, frankly, not very fun to talk about. So instead we talk about some other contenders for the next iteration of the TMK Book Club that show more promise and take us in some different directions. We also ask for your recommendations! Comment on this episode on Patreon or post them on Discord.

Subscribe to hear more analysis and commentary in our premium episodes every week! https://www.patreon.com/thismachinekills

Grab TMK gear: https://www.bonfire.com/store/this-machine-kills-podcast/

Hosted by Jathan Sadowski (www.twitter.com/jathansadowski) and Edward Ongweso Jr. (www.twitter.com/bigblackjacobin). Production / Music by Jereme Brown (www.twitter.com/braunestahl)

As the tech economy faces a massive turn down, we dig deeper into a market segment that experienced meteoric overcapitalized growth, a huge pandemic boost, and an immediate collapse: instant delivery // dark stores // ghost kitchens. To help us analyze the consequences of this sector’s rise, demise, and aftermath we are joined by Aaron Shapiro – author of Design, Control, Predict: Logistical Governance in the Smart City.

••• Aaron’s twitter: https://twitter.com/BricolageYumYum

••• Aaron’s book: https://www.upress.umn.edu/book-division/books/design-control-predict

••• Aaron’s article: https://journals.sagepub.com/doi/abs/10.1177/14695405211069983

••• The Fantasy of Instant Delivery Is Imploding https://www.bloomberg.com/news/features/2022-10-24/gopuff-layoffs-signal-instant-delivery-s-demise?leadSource=uverify+wall

Subscribe to hear more analysis and commentary in our premium episodes every week! https://www.patreon.com/thismachinekills

Grab TMK gear: https://www.bonfire.com/store/this-machine-kills-podcast/

Hosted by Jathan Sadowski (www.twitter.com/jathansadowski) and Edward Ongweso Jr. (www.twitter.com/bigblackjacobin). Production / Music by Jereme Brown (www.twitter.com/braunestahl)

We riff on the artisanal race science of Caroline Ellison, CEO of Alameda Research, the crypto hedge fund linked to FTX. Then we introduce you to the Harman Ready Care system, yet another of the wonderful innovations on the market contributing, in its own incremental way, to improving the world today.

••• Introducing HARMAN Ready Care: Detects Driver Behaviors and Assists via Context-Aware Interventions for Safer and Smarter Drives https://www.businesswire.com/news/home/20220914005609/en/Introducing-HARMAN-Ready-Care-Detects-Driver-Behaviors-and-Assists-via-Context-Aware-Interventions-for-Safer-and-Smarter-Drives

••• Data Driven: Truckers, Technology, and the New Workplace Surveillance https://press.princeton.edu/books/hardcover/9780691175300/data-driven

Subscribe to hear more analysis and commentary in our premium episodes every week! https://www.patreon.com/thismachinekills

Grab TMK gear: https://www.bonfire.com/store/this-machine-kills-podcast/

Hosted by Jathan Sadowski (www.twitter.com/jathansadowski) and Edward Ongweso Jr. (www.twitter.com/bigblackjacobin). Production / Music by Jereme Brown (www.twitter.com/braunestahl)

We dig into the details of FTX’s collapse. FTX is not an isolated event. FTX is not a bad apple. FTX is not uniquely mismanaged. FTX is not a cautionary tale. FTX is not a stunning surprise. FTX is a systemic problem, a vehicle for structural levels of fraud, another in a long line of liquidity crunches for crypto, a litmus test for credible due diligence, a fork in the road for the crypto economy, institutional investors, and government regulators.

••• It Was All a Game for Sam Bankman-Fried https://nymag.com/intelligencer/2022/11/it-was-all-a-game-for-sam-bankman-fried.html

••• FTX’s Balance Sheet Was Bad https://www.bloomberg.com/opinion/articles/2022-11-14/ftx-s-balance-sheet-was-bad

••• FTX held less than $1bn in liquid assets against $9bn in liabilities https://www.ft.com/content/f05fe9f8-ca0a-48d5-8ef2-7a4d813af558

••• Sam Bankman-Fried Was Supposed to Be Different. He Wasn't. https://www.vice.com/en/article/dy7epm/sam-bankman-fried-was-supposed-to-be-different-he-wasnt

••• Sam Bankman-Fried’s FTX Crypto Empire Is Officially Bankrupt https://www.vice.com/en/article/qjkmvw/sam-bankman-frieds-ftx-crypto-empire-is-officially-bankrupt

Subscribe to hear more analysis and commentary in our premium episodes every week! https://www.patreon.com/thismachinekills

Grab TMK gear: https://www.bonfire.com/store/this-machine-kills-podcast/

Hosted by Jathan Sadowski (www.twitter.com/jathansadowski) and Edward Ongweso Jr. (www.twitter.com/bigblackjacobin). Production / Music by Jereme Brown (www.twitter.com/braunestahl)

We dig into Chapter 3 – Theory and Practice – and look at how, in the 1960s and 1970s, theories of finance like random-walk hypothesis and efficient market hypothesis, started leaking out of the university and having real world effects in professional financial practice. Combined with market restructuring caused by the rapid growth of institutional investors in the American economy, these financial theories directly influence the creation of things like index funds, which go on to set financial markets on a totally new pathway.

Here’s a free pdf of the book: https://uberty.org/wp-content/uploads/2015/02/MacKenzie-An-Engine-Not-a-Camera.pdf

Subscribe to hear more analysis and commentary in our premium episodes every week! https://www.patreon.com/thismachinekills

Grab TMK gear: https://www.bonfire.com/store/this-machine-kills-podcast/

Hosted by Jathan Sadowski (www.twitter.com/jathansadowski) and Edward Ongweso Jr. (www.twitter.com/bigblackjacobin). Production / Music by Jereme Brown (www.twitter.com/braunestahl)

We discuss a recent investigation by ProPublica into the convergence of real estate, private equity, and algorithmic pricing as they profile a particularly odious company (RealPage) that is selling a technology (YieldStar) to property management companies, which directly leading to severe upward pressures on rental pricing and vacancy rates. Troubled by real estate companies extracting higher margins out of renters in a tight market in ways that raise red flags of collusion? Well, just blame a guy named Bob.

Stuff we reference:

••• Rent Going Up? One Company’s Algorithm Could Be Why. https://www.propublica.org/article/yieldstar-rent-increase-realpage-rent

••• Senator Seeks Antitrust Review of Apartment Price-Setting Software https://www.propublica.org/article/yieldstar-rent-increase-senate-antitrust-apartment

••• Company That Makes Rent-Setting Software for Apartments Accused of Collusion, Lawsuit Says https://www.propublica.org/article/realpage-accused-of-collusion-in-new-lawsuit

••• RealPage Accused Of Price-Fixing In Student Housing Market https://www.law360.com/real-estate-authority/articles/1546168/realpage-accused-of-price-fixing-in-student-housing-market

••• JP Morgan Wants to Make Tenant Data Available to Every Landlord https://www.vice.com/en/article/k7bkyn/jp-morgan-wants-to-make-tenant-data-available-to-every-landlord

Subscribe to hear more analysis and commentary in our premium episodes every week! https://www.patreon.com/thismachinekills

Grab TMK gear: https://www.bonfire.com/store/this-machine-kills-podcast/

Hosted by Jathan Sadowski (www.twitter.com/jathansadowski) and Edward Ongweso Jr. (www.twitter.com/bigblackjacobin). Production / Music by Jereme Brown (www.twitter.com/braunestahl)

We talk about the chaos at Twitter as Elon drives the company into the ground, merging classic techniques of a private equity takeover with his patented impulsive incompetence.

Stuff we reference:

••• Musk’s Trump-style management rattles Twitter workers awaiting layoffs https://www.washingtonpost.com/technology/2022/11/03/elon-musk-twitter-layoffs-silence-blind/

••• Twitter job cuts begin as Musk warns of ‘massive’ revenue drop https://www.ft.com/content/b9a2a0ec-d3fe-422d-bc62-fa9ddfd3f06c

••• A Layoff Guide for Twitter Workers https://news.techworkerscoalition.org/2022/11/03/issue-16/

••• Exclusive: Tesla faces U.S. criminal probe over self-driving claims https://www.reuters.com/legal/exclusive-tesla-faces-us-criminal-probe-over-self-driving-claims-sources-2022-10-26/

••• American Gentry https://www.theatlantic.com/ideas/archive/2021/09/trump-american-gentry-wyman-elites/620151/

Subscribe to hear more analysis and commentary in our premium episodes every week! patreon.com/thismachinekills

Grab TMK gear: bonfire.com/store/this-machine-kills-podcast/

Hosted by Jathan Sadowski (www.twitter.com/jathansadowski) and Edward Ongweso Jr. (www.twitter.com/bigblackjacobin). Production / Music by Jereme Brown (www.twitter.com/braunestahl)

We are joined by Jacob Silverman – contributing editor at The New Republic – to discuss his profile of David Sacks, a venture capitalist and right-wing media personality who has been on the vanguard of reactionary culture wars and political influence in Silicon Valley.

Follow Jacob: https://twitter.com/SilvermanJacob

Stuff we reference

••• The Quiet Political Rise of David Sacks, Silicon Valley’s Prophet of Urban Doom https://newrepublic.com/article/168125/david-sacks-elon-musk-peter-thiel

••• The Neocons and the Woke Left Are Joining Hands and Leading Us to Woke War III | Opinion https://www.newsweek.com/neocons-woke-left-are-joining-hands-leading-us-woke-war-iii-opinion-1748947

••• The Shadow Crew Who Encouraged Elon Musk’s Twitter Takeover https://www.wsj.com/articles/the-shadow-crew-who-encouraged-elon-musks-twitter-takeover-tesla-jack-dorsey-11651260119

Subscribe to hear more analysis and commentary in our premium episodes every week! patreon.com/thismachinekills

Grab TMK gear: bonfire.com/store/this-machine-kills-podcast/

Hosted by Jathan Sadowski (www.twitter.com/jathansadowski) and Edward Ongweso Jr. (www.twitter.com/bigblackjacobin). Production / Music by Jereme Brown (www.twitter.com/braunestahl)