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Author Topic: Underground economy set to overtake U.S. economy  (Read 1746 times)
Cryptoman
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October 29, 2011, 06:52:38 PM
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In this Foreign Policy article, Robert Neuwirth describes the growing black market or System D economy and how it not only creates opportunities for those left behind in the traditional economy but how it will soon surpass the U.S. economy in size.  Technologies like Bitcoin, Open Transactions and Ripple can enable even the tiniest System D players to extend their trading sphere to the entire planet. 

http://www.foreignpolicy.com/articles/2011/10/28/black_market_global_economy?page=full


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October 29, 2011, 10:46:14 PM
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Great find! If I could, I'd make this post sticky. The article describes exactly what makes a society strong and why certain technologies like Bitcoin will eventually flourish.

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October 30, 2011, 12:24:07 AM
 #3

Its an interesting article but......

I have a hypothetical question.

Ok this "system D" economy can only exist because of the restrictive monopolistic nature of the global (legal) economy.

So what happens when the legit economy collapses? Would the system D economy then become the main economy that rules the world? Or would it just go down the toilet along with everything else in the collapse?

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miscreanity
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October 30, 2011, 12:53:37 AM
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Its an interesting article but......

I have a hypothetical question.

Ok this "system D" economy can only exist because of the restrictive monopolistic nature of the global (legal) economy.

So what happens when the legit economy collapses? Would the system D economy then become the main economy that rules the world? Or would it just go down the toilet along with everything else in the collapse?

The future is a big ball of 'guess' so I probably won't be entirely accurate. My observation so far is that System D won't collapse as it is built from a much more solid base than the crumbling mess the traditional nationally-based economic network is resting on now. Instead, it will supplant that contemporary economy with a much more genuine one-world economy; possibly even a one-world currency (Bitcoin?). Somalia's economy is a particularly interesting model of these events.

With maturity of the global system, there'll be efforts to control it. Overall, a general balance will develop that should preclude any single force from fully dominating all. In addition to that, increased incorporation and reliance upon computers, various technologies and the resulting software is moving the reigns of control away from human fallibility.

If there is going to be turbulence with assimilation and harmonization of disparate cultures into the global community, then System D could experience a few cycles of growing pains before settling. By following the course humanity is on, we are effectively creating a cocoon. Beyond that stage, it's hard to even make an educated guess about what's next.

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ElectricMucus
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October 30, 2011, 01:06:35 AM
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Its an interesting article but......

I have a hypothetical question.

Ok this "system D" economy can only exist because of the restrictive monopolistic nature of the global (legal) economy.

So what happens when the legit economy collapses? Would the system D economy then become the main economy that rules the world? Or would it just go down the toilet along with everything else in the collapse?

It should be a smooth transition, plenty of time for an alternative paradigm to form.
I'd expect for hierarchical systems emerging from existing communication infrastructure eventually replace nation states. As for everything else since tribal association is independent from the network it would eventually become completely decentralized.

I'm unsure of how the old paradigm will react though. Black swan theory suggests they might completely miss the train but once they become aware of it they will eventually try to regulate communication software.
Would be a rough time...

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October 30, 2011, 09:48:10 AM
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I'm unsure of how the old paradigm will react though. Black swan theory suggests they might completely miss the train but once they become aware of it they will eventually try to regulate communication software.
Would be a rough time...

I think they already try to do this with drug dealers, it will be on a much larger scale though. And those who dont adapt will fall and those who do wont blink an eye Wink
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October 30, 2011, 06:02:52 PM
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Very interesting. Wondering if Mafia- and protection-money-like structures do/will occur and how they will be counteracted.

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November 04, 2011, 03:18:19 PM
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My guess is that this will be the biggest economy in the world by the end of the decade.
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