At some point in our future the machines become more capable then people, why is this happening? What happens next?  Does it have to happen?

We have all watched the science fiction movies like ‘Terminator’ and ‘Matrix’ where a technological dystopian future that has mankind fighting machines.  The machines decide that people are a waste of resources and must be eliminated, at least that is how the story goes.

I would suggest that is the path we are on, weather the future technology will be slaved to humanity or aligned against humanity is the only debate.  In either case, mankind is quickly becoming irrelevant.  Why are we not objecting to the idea of becoming irrelevant?  And lets face it, irrelevance also means powerlessness.  Why on earth are we all agreeing to a future we will not control and automation replacing people?


People are inherently valuable

Unlike machines people are self-sufficient.  Machines are still quite reliant on people keeping them running.  When people work they earn money, as they go, for themselves and their employers.  When machines are put to work, first they are paid for usually with a capital loan and then over time the machine pays for itself and eventually saves the company money.

It is in this difference, that insight can be gleaned as too why automation is so rapidly replacing people.  The bottom line is that cheap endless credit drives companies to replace people with machines.  This is only because the commercial banks is responsible for growing automation , they have been given ownership of the Federal Reserve.  The banks are on the other team, their success is making the machines a reality.

Let’s take a closer look.  Workers are paid by the hour.  The company they work for must therefore pay them less than the value of the work they do.   The old saying that time is money applies specifically to hourly work.  The work performed over time by definition is power.

This is why the definition of money is power and applying a person’s time towards earning money is work.  A worker’s greatest strength is to create more value then they earn.   A worker has little if any acquisition cost, they can make money for their employer as soon as they start.

Machines or Robots are not mechanical workers, they are assets.  As assets they cost money to buy and they cost money to assemble.  Advanced robotic technologies have many complicated and expensive components.  If the cost of money, the interest rate, is low enough then the cost of all the complex components can be offset over time.

However, if the cost of money is high then these complicated expensive technologies become unviable.  Technology’s strength lies in its ability to have a very low long-term cost.  Technologies weakness is that its initial cost if very high.



Volume Makes Technology Possible

It’s not just low interest rates that causes automation replacing people it’s also the infinite credit.  Technology loves volume, it brings the cost of each unit down and profits up.  As long as banks have access to print the money needed to pay for automation, the technology companies can keep selling and replacing people with all the loans the banks are doling out.

If millions of iPhones were not built and sold every year there would not be any iPhone at all.  The cost of making just one iPhone is inconceivably high.  In addition, many of the iPhone components are used in other products, if those components were only used in the iPhone then the iPhone would be too expensive to sell.  The scale up or premarket investment in these high-tech gadgets are paid for through loans from banks.  If it were not for the credit from banks these products would never go to market.


Technology does not have to advance at breakneck speeds.  Higher interest rates slows it to a crawl.  Technology no longer is making life better.  If anything, technology is getting scarier as addiction has become a critical part of product design.

Very high interest rates will reverse the tide in the workers favor.  The best part is that it can all be done to the benefit of humanity.  Even wealthy people will benefit.  The banks however, need to take a back seat.  The banks are playing for the wrong team.  They may not have known any better but time is running out.


Read this book to get the full solution, Optimizing America.

Part 1: The Privatized Economy

Part 2: The American Dream is for Bankers

Part 3: Automation is a Product of the Banking Industry

Part 4: Man Verses Machine

Part 5: The Technology Train