Hey Jesszombies
The world economy contracted a sickness called fiat money back in 1971, and ever since then, the disease spread across the world. The fiat sickness was never adequately studied and understood, and while it has brought some intended functional consequences, it has left us with a whole lot of compromised systems. We were ripe for attack from an external force, and we got one in 2020 which sees the world economy currently on life support.
One of the most significant issues with fiat is the manipulation of it and how it can be used to create all sorts of inefficiencies we simply accept as normal today. A result of fiat manipulation has been the birth of the zombie company, where earning and production doesn't matter, they burn through cash as quickly as governments do and feed off the people and their wealth to stay in existence and power.
The zombie break out
In 2008, the zombies were exposed on a large scale for the first time, and instead of taking a bat to their heads like ANY sane person we've seen in zombie movies, we instead turned around and took the bat to our own heads. Cracked open our skulls like a boiled egg and said have at it, chow down.
The TARP bailouts were us effectively giving our healthy blood and the blood of our unborn kids and providing a transfusion to a dead corpse, and we kept it on life support ever since. Since then its been QE and lower and lower interest rates til 0 and now negative, anything to keep this carcass from rotting further.
What is a zombie company?
A zombie company is the product of a corrupt political and economic system in which state funds or taxpayer money is openly given to a poor capital allocator to keep going. You may know this as bailouts, bailouts have been normalised when they are anything but normal.
These over-indebted companies have taken moral hazard to the next level, knowing they know have a get out of jail free card has been openly using the legal framework to push companies into bankruptcy at a profit.
They know full well they will never be able to repay the interest on its debts but not repay the principal and remain forever in debt. But because politicians don't want to be seen as the guy who puts people out of jobs and to give their friends on wall street free money, we see bail out after bail out after bailout.
The zombie company always needs a fresh supply of money, and like many citizens live paycheque to paycheque. The difference is a citizen works for theirs, a zombie company goes, oh no Mr president we don't have enough customers and we need to pay bonuses and increases please give us money or we're going to die.
And the government goes sure, fuck over the taxpayer for another four years while I am in the big office.
How do companies become zombified?
Now that you know why a company becomes zombified you're probably wondering how these companies become zombies, I mean they still produce goods and services, and people come to work, surely there's always something worth saving. Yes, the skilled labour is worth saving, but they cannot get fair market value for their skills in an economy where zombie companies dictate terms.
So instead of using the capital to either pay better wages, reward shareholders with dividends, reinvest in improving the product for consumers, zombie companies use it to issue out stock options and buy back stock to raise the value of the company.
Then they take the new valuation, go into the bond market, sell debt to finance the company and keep buying back stock. Then instead of creating goods and services, they start to create financial products.
Let's say a car manufacturer would normally create cars and then sell them, but why do that and compete when you can lease them, then take all the leases and combine them into a derivative and then sell that and make huge some of instant wealth you can sue to buy back stock.
Instead of creating products, we licence our patents and let others create goods and services and profit off of the fact hta we registerd a piece of paper first.
Zombie companies don't want to be productive, they want to try and find the best way to leach off of others even if that means killing the host and itself in the process, because the government will save them since they are too big to fail.
Let them die
Until we let zombie companies die, there is no capitalism; there is no competition, there is no hope for the startup, small business or SME to get their fair share of the market. Once you let them go bust, yes there will be a pain, but from the pain will come prosperity.
You'll be surprised at how resilient and resourceful people are when you stop chewing on the top of their brain and in the back of their wallets.
Have your say
What do you good people of HIVE think? It looks like hyperinflation is the option, what do you think?
So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."
Let's connect
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This is so sad. this is exactly what happens in my country. however, they just exploit staff and become less productive and then invest in the financial market. After that, they lay off the workers ... Fuck zombie companies..
They were pioneered in the US and shipped off to other countries who just copy what the big boys are doing. Its a form of financial looting and pillaging, the game is the same, the tools are just different, instead of pirates its men and woman in suits with fancy degrees.
!ENGAGE 15
Thank you
ENGAGEtokens.Do we get a choice on whether they are left to die? Be nice if we did. Hyperinflation seems inevitable.
Btw, what's a Jessie?
No, we don't if they want to use aggregating purchase power through inflation there's nothing we can do but opt-out through gold and Bitcoin. Indeed, I think hyperinflation is the only option
A Jessie, is anyone who graces my comments section with their insights :)
awesome stuff ... not to mention all the zombies walking around the u.s. refusing to wear masks,,, fucking idiots
Let’s hope we don’t need to deal with more zombies 🧟♀️ I also would love to get out and be outside more often I’ll be honest
Arrr zombie's 😱🤪
Give me your brains and your bank account
I think you and Joe Rogan would get along. He interviewed Elon Musk on the same subject, to which they agreed.
Wow I didn’t expect that comment I love the Bro Jogan an in Elon we Musk! I think then I’m clearly on to something if they agree too 🤪
In Elon we Musk. I've never heard that. I may have to use that on my show tomorrow. I'll be highlighting some muskiness all over the place. You should come hang out. The post is on my feed if you wanna come check it out.
Sure, i'll try to tune in, you're time zone don't make it easy but Ill try
Not a good way to run a company.
!tip
Not at all, but they clearly seem to favour short term profit over everything else, just means the real companies will actually have a chance once we stop all this money printing and skill and effort actually become the differentiating factor between businesses
Beautifully written. I say let them die too and let the cards fall where they may, let the free market take care of it.
Gold and Bitcoin are our weapons against these zombies and I for one am ready to hand out some headshots, you with me? Let's go zombie hunting
Haha zombie hunting, lets go!
"I am a Jessie."
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