English : Resume Book

TechnoFeudalism
March 4, 2024

Contents

1 Hesiod’s Lament 3
1.1 Father’s Friends . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.2 A Child’s Introduction to Historical Materialism . . . . . . . . 3
1.3 From Heat to Light . . . . . . . . . . . . . . . . . . . . . . . . 3
1.4 A Most Peculiar Introduction to Capitalism . . . . . . . . . . 4
1.5 An Equally Odd Introduction to Money . . . . . . . . . . . . 4
1.6 Free to Choose? Or to Lose? . . . . . . . . . . . . . . . . . . . 5
1.7 Father’s Question . . . . . . . . . . . . . . . . . . . . . . . . . 6

2 Chapter 2: Capitalism’s Metamorphoses 7

2.1 Dad, it was capitalism’s Achilles heel, after all . . . . . . . . . 7
2.2 Retrieving the irretrievable . . . . . . . . . . . . . . . . . . . . 7
2.3 Technostructure . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.4 Attention markets and the Soviets’ revenge . . . . . . . . . . . 8
2.5 The Audacious Global Plan . . . . . . . . . . . . . . . . . . . 8
2.6 Mad Numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.7 The Fearless Global Minotaur . . . . . . . . . . . . . . . . . . 9
2.8 From Uncontrollable Discontent to Controlled Disintegration . 9
2.9 The Minotaur’s Favorite Handmaidens: Neoliberalism and the
Computer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
2.10 Back to Your Question . . . . . . . . . . . . . . . . . . . . . . 10

3 Cloud Capital 11
3.1 Commanding Capital . . . . . . . . . . . . . . . . . . . . . . . 11
3.2 From Don to Alexa . . . . . . . . . . . . . . . . . . . . . . . . 11
3.3 Singularities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.4 The birth of the internet commons . . . . . . . . . . . . . . . 12

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 3.5 The New Enclosures . . . . . . . . . . . . . . . . . . . . . . . 12
3.6 Cloud Capital: Beginnings . . . . . . . . . . . . . . . . . . . . 13
3.7 Cloud Proles . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
3.8 Cloud Serfs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
3.9 Wither Markets, Hello Cloud Fiefs . . . . . . . . . . . . . . . 14
3.10 Back to Your Question . . . . . . . . . . . . . . . . . . . . . . 15

4 The Rise of the Cloudalists and the Demise of Profit 15

4.1 The Secret of the New Ruling Class . . . . . . . . . . . . . . . 16
4.2 2008’s Unintended Consequences . . . . . . . . . . . . . . . . 17
4.3 Poisoned Money, Gilded Stagnation . . . . . . . . . . . . . . . 17
4.4 How Profits Became Optional for the Cloudalists . . . . . . . 18
4.5 Private inequities . . . . . . . . . . . . . . . . . . . . . . . . . 19
4.6 Back to your question . . . . . . . . . . . . . . . . . . . . . . 19

5 What’s in a Word? 20
5.1 Rent’s revenge: how profit succumbed to cloud rent . . . . . . 21
5.2 Capitalism on steroids? . . . . . . . . . . . . . . . . . . . . . . 21
5.3 The Technofeudal Method to Elon Musk’s Twitter Madness . 22
5.4 The Technofeudal Underpinnings of the Great Inflation . . . . 23
5.5 The Case of German Cars and Green Energy . . . . . . . . . . 23
5.6 Back to your question :Is Capitalism not Back on Track? . . . 24
5.7 Technofeudalism’s Global Impact: The New Cold War . . . . 25
5.8 Technofeudalism with Chinese characteristics . . . . . . . . . . 25

6 Technofeudal geopolitics: The emerging ’threat’ of China’s

cloud finance 26
6.1 Technofeudal geopolitics: How Ukraine helped divide the world
into two super cloud fiefs . . . . . . . . . . . . . . . . . . . . . 27

7 The spectre of technofeudalism over Europe, the Global South,

the planet 28
7.1 Back to your Question: who wins and who loses ? . . . . . . . 28
7.2 Escape from Technofeudalism . . . . . . . . . . . . . . . . . . 29
7.3 The Death of the Liberal Individual . . . . . . . . . . . . . . . 29
7.4 The Impossibility of Social Democracy . . . . . . . . . . . . . 30
7.5 Crypto’s False Promise . . . . . . . . . . . . . . . . . . . . . . 30
7.6 Imagining Another Now . . . . . . . . . . . . . . . . . . . . . 30
7.7 Democratised Companies . . . . . . . . . . . . . . . . . . . . . 31
7.8 Democratised Money . . . . . . . . . . . . . . . . . . . . . . . 31
7.9 The Cloud and the Land as a Commons . . . . . . . . . . . . 31

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 7.10 A Cloud Rebellion to Overthrow Technofeudalism . . . . . . . 32
7.11 Back to Your Question, One Last Time . . . . . . . . . . . . . 33

1 Hesiod’s Lament
1.1 Father’s Friends
Father introduces his son to the magical qualities of iron through his work as a
chemical engineer at a steel plant. He brings home various pieces of metal, in-
cluding tin and bronze, to demonstrate their transformative properties when
heated and cooled. Finally, he introduces his son to iron, emphasizing its
unique properties and resilience. They forge a sword together, highlighting
iron’s strength and durability.

1.2 A Child’s Introduction to Historical Materialism

Father explains to his son the significance of iron in human history, em-
phasizing its transformative properties and role in accelerating civilization.
He contrasts the limitations of bronze with the superior qualities of iron,
highlighting how communities that mastered iron thrived while those that
didn’t perished. He connects historical events, such as the arrival of the Iron
Age and the technological innovations of the Industrial Revolution, to the
broader concept of historical materialism, which views history as a feedback
loop between human actions and material conditions. Father acknowledges
the potential dangers of unchecked technological progress, echoing the sen-
timents of poets like Hesiod who warned of the negative consequences of
humanity’s reliance on iron and technology. Despite these warnings, Father
maintains hope that humans can harness technology for good rather than
succumb to its destructive potential.

1.3 From Heat to Light

Father explores the nature of light with his son, discussing historical debates
about whether light behaves as waves or particles. He introduces Albert
Einstein’s theory that light is both particles and waves simultaneously, high-
lighting the dualistic nature of nature itself. Father connects this dualism
to broader philosophical and political ideas, drawing parallels between the
contradictory nature of light and the complexities of society. He links his
fascination with physics to his left-wing politics, citing Karl Marx’s observa-
tions about the contradictions inherent in technology and society. Father’s

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nuanced view acknowledges the potential of technology to both liberate and
enslave, emphasizing the importance of collective action in shaping its im-
pact.

1.4 A Most Peculiar Introduction to Capitalism

The narrator reflects on the origins of their leftist views, rooted in a sensitivity
to the duality of things instilled by their father. They recount their mother’s
experience with waged labor, highlighting the distinction between commodity
labor (time and formal skills) and experiential labor (effort, passion, and
flair). Drawing on Marx’s theories, the narrator explores how labor has two
natures: commodity labor, which can be bought and sold, and experiential
labor, which cannot be commodified. They argue that capitalism’s secret lies
in its exploitation of experiential labor, where employers profit from workers’
efforts beyond their commodity labor. The narrator extends this analysis to
capital, suggesting that it too has dual natures: commodity capital and power
capital. They reflect on the intersection of Marx’s theories with their father’s
inspiration from Einstein’s physics, finding parallels in their understanding of
duality. Ultimately, they affirm their belief in the dual nature of capitalism
as articulated by both Marx and Einstein

1.5 An Equally Odd Introduction to Money

Uncle Albert, as Father used to refer to Einstein on occasion, continued my
education regarding capitalism. He opened my eyes to the dual nature of
both labor and capital, guiding me to understand the dual nature of money
through a circuitous path involving John Maynard Keynes.
In 1905, the 26-year-old Einstein challenged the skeptical world, proposing
that light was a continuous field of waves made up of particle-like entities.
He also asserted that energy and matter were fundamentally linked by the
equation E = mc2 , indicating that a body’s energy content is equivalent to
its mass multiplied by the speed of light squared. A decade later, Einstein
extended his Special Theory of Relativity to elucidate the nature of gravity.
The resulting General Theory of Relativity was complex and required a
mindset that rejected conventional sensory perceptions. Einstein urged us
to reconsider our understanding of space and time, proposing that matter
and energy shape the contours of space-time. This concept challenged our
intuitive understanding but provided a more accurate description of reality.
This newfound understanding of the universe paralleled Keynes’s ap-
proach to economics. Keynes, influenced by Einstein’s theories, wrote The
General Theory of Employment, Interest, and Money in 1936. He aimed

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to explain why capitalism struggled to recover from the Great Depression.
Keynes rejected conventional economic thinking that treated money as just
another commodity, arguing that such views were akin to using outdated
illusions in a rapidly changing world.
Today, we face a barrage of misconceptions about money. Politicians
advocate for harmful austerity measures, while central bankers grapple with
the complexities of inflation and deflation. Crypto enthusiasts tout digital
currencies as solutions to global issues, and Big Tech develops its own forms
of digital money.
In the face of this confusion, Keynes’s advice, derived from Einstein’s
theories, remains relevant: we must stop thinking of money as separate from
our social interactions and technological advancements. Money is more than
a mere commodity; it reflects our relationships and our ability to transform
matter.
In poetic terms, Marx expressed this sentiment: "Money is the alienated
ability of mankind. That which I am unable to do as a man, I can accomplish
through money. Money turns each of our powers into something contrary to
itself."

1.6 Free to Choose? Or to Lose?

In early 2015, a historical accident led to my appointment as Greece’s finance
minister, thrusting me into conflict with powerful entities worldwide. The
international press scrutinized my background, finding it perplexing that I
identified as a libertarian Marxist—a label that garnered skepticism from
both libertarians and Marxists alike. When asked about the source of my
supposed confusion, I jokingly credited my parents.
Jokes aside, my father played a crucial role in shaping my political out-
look, instilling in me a perspective that challenged the notion that capitalism
and freedom are inherently compatible. Contrary to conventional wisdom,
which paints capitalism as synonymous with freedom and socialism with jus-
tice, I believe that the left has always been about emancipation.
During the feudal era, economic choices were virtually nonexistent. Land
and labor were not commodities; they had no market value. However, in the
eighteenth century, advancements in trade and navigation sparked a trans-
formation. British landlords evicted serfs from unproductive land, creating
opportunities for both landlords and laborers to make choices. Yet, this new-
found freedom was often illusory, resembling the choice offered by a mafia
boss: accept undesirable conditions or face dire consequences.
By the nineteenth century, thinkers like Marx focused on freeing human-
ity from self-inflicted unfreedom, particularly the consequences of the In-

5
dustrial Revolution. The left aligned itself with movements for abolition,
suffrage, civil rights, and LGBTQ+ rights, advocating for liberation from
various forms of oppression.
However, in the twentieth century, the left began to prioritize other objec-
tives over freedom. In the East, the pursuit of emancipation led to totalitar-
ianism, while in the West, liberty was sacrificed in pursuit of an ambiguous
notion of fairness. This shift eroded the left’s credibility, as it seemed to
abandon the fundamental principles of liberalism.
Reflecting on history, my parents and I acknowledged the defeat of the
social democratic dream, symbolized by the fall of the Soviet Union. We
lamented the loss of conviction that capitalism was inherently flawed and
unjust, leading to a retreat from the principles of liberty and equality.
In a moment of introspection, I asked my parents what freedom meant
to them. For my mother, it was the ability to choose partners and projects,
while my father emphasized the freedom to read, experiment, and write.
Whatever one’s definition of freedom may be, it surely does not entail the
freedom to suffer soul-crushing losses.

1.7 Father’s Question

In today’s world, capitalism permeates our lives so thoroughly that most
people accept it as unquestionable, akin to the air we breathe. As Fredric
Jameson famously observed, imagining the end of capitalism is more chal-
lenging than envisioning the end of the world itself. However, for my fa-
ther’s generation of leftists in the mid to late 1940s, the demise of capitalism
seemed imminent, with some believing it would occur within a few years or
even months. Yet, as time passed, capitalism’s collapse receded further into
the future, disappearing beyond the horizon after 1991.
Despite realizing he would likely not witness capitalism’s end in his life-
time, my father continued to ponder its eventual demise. While I delved into
the intricacies of political economy, he turned his attention to the study of
ancient technology. Occasionally, he would muse about how capitalism might
end and what would replace it, hoping for a transition devoid of catastrophic
upheaval. He envisioned socialist enclaves emerging within the capitalist
framework, gradually expanding to form technologically advanced societies.
In 1987, my father enlisted my help to set up his first desktop computer,
humorously referring to it as a "glorified typewriter." Recognizing its po-
tential, he marveled at the editing capabilities it offered, joking about how
Marx would have benefited from such a tool. Over the years, he used the
computer to produce extensive writings on the intersection of ancient Greek
technology and literature.

6
 By 1993, I introduced him to the internet, connecting his computer to the
fledgling network. Viewing it as a transformative development, he posed a
poignant question: would this interconnected network reinforce capitalism’s
resilience or expose its vulnerabilities? Regrettably, preoccupied with my
own endeavors, I never provided a satisfactory answer to his question. As I
reflect on his passing a few years later, I offer this belated response, hoping
to honor his curiosity and insight.

2 Chapter 2: Capitalism’s Metamorphoses

2.1 Dad, it was capitalism’s Achilles heel, after all
The digitally networked technologies spawned by capitalism have led to its
downfall, resulting in the emergence of a technologically advanced form of
feudalism. Despite capitalism’s apparent triumph, with new monuments to
its power proliferating, a deeper examination reveals a system wherein the
capital-poor sink deeper into precarity while democracies bend to capital’s
will. This chapter explores capitalism’s metamorphoses and the rise of tech-
nofeudalism.

2.2 Retrieving the irretrievable

The mass commercialization of nostalgia marked a fundamental shift in cap-
italism’s DNA, transitioning from merely manufacturing desirable products
to skillfully manufacturing desire itself. Capitalism’s relentless drive to com-
modify everything it touches led to the subjugation of experiential value to
exchange value. However, resistance to this commodification persisted, with
experiential value retreating into the catacombs of the psyche. The post-war
transformation of capitalism, epitomized by characters like Don Draper in
"Mad Men," revealed the discovery of a new market for attention within a
system still reliant on labor’s dual nature.

2.3 Technostructure
The emergence of mega-corporations in early-twentieth-century capitalism
was facilitated by the development of electricity and telegraph grids, which
allowed for the creation of top-down, networked corporations. However, the
banks and share markets of the time were ill-prepared to finance these cor-
porate empires, leading to the consolidation of small banks into large ones

7
to provide the necessary credit. This transformation, driven by electromag-
netism, gave rise to Big Finance alongside Big Business. The ensuing Jazz
Age saw a shift from Victorian parsimony to largesse, with debt-funded spec-
ulation fueling economic growth. The Great Depression and subsequent New
Deal marked a turning point, with the government adopting Soviet-style plan-
ning principles during the War Economy. The close collaboration between
government and Big Business led to the emergence of the technostructure, a
private-public decision-making network focused on the survival and growth
of conglomerates. Profitability remained essential, but the technostructure’s
primary goal became to maintain employment and growth. The War Econ-
omy experiment proved successful, transforming American capitalism and
blurring the lines between business and government.

2.4 Attention markets and the Soviets’ revenge

The advent of radio and television commodified attention, allowing for the
creation of an attention market alongside the labor market. Broadcasters
realized they could offer programs for free to capture viewers’ attention and
then sell it to advertisers. This transformation added creative types, strate-
gists, and engineers to the technostructure, leading to centralized decision-
making in the economy. By the 1960s, American capitalism had transitioned
from a decentralized market society to a centralized economy-with-markets,
resembling Soviet planning principles. Ironically, during the ideological clash
of the Cold War, America implemented successful Soviet-style planning do-
mestically. However, to sustain economic growth, foreign markets became
essential due to overproduction capacities.

2.5 The Audacious Global Plan

The breakdown of the Bretton Woods system in 1971 marked a significant
turning point in global capitalism. The system, established in 1944 by the
New Dealers, aimed to prevent the return of the Great Depression by in-
tegrating post-war Europe and Japan into America’s War Economy. By
linking European currencies and the yen to the dollar with fixed exchange
rates, Bretton Woods effectively ’dollarized’ these economies, ensuring their
stability and value. However, by the mid-1970s, the system began to unravel,
leading to the demise of fixed exchange rates and the onset of a new phase
in capitalism’s evolution.

8
2.6 Mad Numbers
In the years following the Nixon Shock of 1971, global finance witnessed expo-
nential growth, with the total value of financial bets far surpassing humanity’s
total income. This phenomenon, characterized by astronomical figures and
excessive speculation, reflected capitalism’s hubris and the unchecked power
of the financial sector. Financial instruments such as derivatives played a
central role in this growth, allowing bankers to engage in risky speculation
with vast sums of money. However, the inherent instability of this system,
compounded by the dispersion of risk through the securitization of debt,
ultimately led to the financial crisis of 2008. The shift of capitalist power
from industry and commerce to the financial sphere, fueled by unchecked
greed and speculative frenzy, reshaped the global economy and magnified
the influence of the banking sector.

2.7 The Fearless Global Minotaur

In ancient times, the Minotaur symbolized fear and tragedy, residing in a
labyrinth and feeding on human tribute. Millennia later, a new Minotaur
emerged from the ashes of the Bretton Woods system, representing the US
trade deficit and consuming the world’s exports. Its connection to Wall Street
sustained global peace and prosperity, despite America’s growing deficit. The
Nixon Shock of 1971 marked a pivotal moment, solidifying the dollar’s hege-
mony and intentional suppression of American wages to attract foreign cap-
ital.

2.8 From Uncontrollable Discontent to Controlled Dis-

integration
By the mid-1960s, societal discontent grew amidst the Vietnam War and
manufactured desires. The technostructure faced backlash for unfulfilled ex-
pectations. The rise of anti-establishment movements like the May 1968
uprisings and civil rights campaigns signaled a desire for change. The Nixon
Shock of 1971, orchestrated by functionaries, intentionally dismantled the
Bretton Woods system to make way for America’s Global Minotaur, initiat-
ing a phase of controlled disintegration.

9
2.9 The Minotaur’s Favorite Handmaidens: Neoliberal-
ism and the Computer
The rise of neoliberalism and the proliferation of computers played crucial
roles in the controlled disintegration of the old planned system, paving the
way for the emergence of the Minotaur. American workers suffered as neolib-
eral policies and engineered recessions weakened labor unions and deregulated
financial markets. Neoliberalism provided ideological justification for these
actions, promoting the belief in the superiority of free markets. Simultane-
ously, the advent of personal computers in the late 1970s revolutionized fi-
nance, enabling the creation of complex financial instruments like derivatives.
These derivatives, driven by computer-generated complexity, fueled frenzied
trading and speculative bubbles, ultimately leading to the 2008 financial cri-
sis. Despite the devastation caused by the crisis, bankers were spared from
accountability due to their control over the payments system and the inter-
twined nature of financial markets with everyday life. The collusion between
financial institutions and the housing market, facilitated by computerized
financial instruments, exacerbated the crisis and led to widespread home-
lessness. Meanwhile, the productivity gains promised by computers in other
sectors did not materialize in finance, where complexity obscured the risks
of speculative trading. This period saw the convergence of three factors: the
flow of capital to the American Minotaur, the complexity of financial deriva-
tives driven by computers, and the neoliberal ideology promoting market
deregulation.

2.10 Back to Your Question

The proliferation of computers, interconnectedness, and the attention econ-
omy, alongside the rise and fall of the Minotaur, have reshaped capitalism’s
evolutionary trajectory. While the internet did not render capitalism invin-
cible, it catalyzed a series of mutations within the system, ultimately leading
to its transformation into something new. Capitalism adapted and evolved,
incorporating technological advancements and societal changes, akin to a
virus facing various vaccines. These metamorphoses culminated in the emer-
gence of technofeudalism, where a new ruling class emerged, empowered by a
new form of capital. Despite capitalism’s resilience, its final metamorphosis
underscores the need to rethink wealth distribution, democratic governance,
and environmental sustainability. The demise of the Minotaur symbolizes
the failure of capitalism’s stability and the illusion of greed as a virtue, ush-
ering in a new era defined by concentrated power and a reimagined economic
system.

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3 Cloud Capital
The text explores the connection between power and wealth, illustrated by
a scene from the movie "Justice League". It emphasizes that serious power
stems from wealth, not just the physical abilities of superheroes. The author
analyzes how power evolved from land ownership to the possession of capital,
highlighting the crucial role of unequal access to resources. It explains how
capital, distinct from money and weapons, became the driver of production
under capitalism, transforming the landscape of power and wealth in the
world.

3.1 Commanding Capital

The section recounts the story of Thomas Peel, an Englishman who at-
tempted to establish an agricultural colony in Australia in 1829. Despite
meticulous planning and ample resources, Peel’s venture failed due to his
workers’ unexpected abandonment. The text analyzes how Peel’s assump-
tion of authority over his workers was shattered, highlighting the shift of
power from landowners to owners of capital goods. It discusses the role of
enclosures in Britain in denying labor access to land, thereby enabling cap-
ital to command labor power. This shift reshaped societal power dynamics,
leading to the rise of capitalists as agenda setters and influencers. The emer-
gence of a new form of capital, termed "cloud capital," suggests the need for
a reevaluation of the existing system.

3.2 From Don to Alexa

The passage explores the evolving role of virtual assistants like Alexa and
Google Assistant, contrasting them with traditional advertising tactics em-
bodied by characters like Don Draper. While Draper’s influence was largely
one-directional through media, Alexa represents a more insidious form of in-
fluence. It observes and learns from our behaviors, gradually shaping our
preferences and guiding our choices in a two-way interaction. This process
creates a feedback loop where Alexa not only responds to our commands but
also trains us to engage with it in a way that benefits its algorithmic net-
work. This dynamic underscores the emergence of algorithmic, cloud-based
command capital, granting unprecedented power to shape and influence con-
sumer behavior.

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3.3 Singularities
The passage delves into the theme of singularities in storytelling, often de-
picted in movies like Terminator and The Matrix, where machines achieve
consciousness and turn against humanity. However, the author argues that
while such scenarios are fictional, they distract from the real danger posed by
machines like Alexa and AI chatbots. Despite lacking true sentience, these
machines wield significant power over us, with the potential for devastat-
ing consequences. The narrative then shifts to the idea that singularities in
technological advancement are not solely driven by technology but also by
social and political factors. Drawing parallels with historical events like the
enclosures during the Industrial Revolution, the author suggests that the rise
of cloud capital, marked by the exploitation of internet commons and sub-
sequent technological innovations, follows a similar pattern. Understanding
this narrative can shed light on how cloud capital has gained unprecedented
power.

3.4 The birth of the internet commons

The passage discusses the birth of the internet commons, highlighting its
initial development as a non-commercial network primarily driven by the
needs of the military during the Cold War era. Contrary to capitalist prin-
ciples, the early internet functioned as a decentralized system, emphasizing
cooperation and shared endeavor rather than market exchanges. This un-
commodified nature of the internet reflected broader economic trends at the
time, where the dominance of a technostructure in the US and Japan led to
the creation of a digital commons. The internet, or Internet One, was built
on open protocols by military scientists, academics, and researchers from
various non-commercial organizations, fostering a spirit of shared endeavor
and attracting enthusiasts who contributed to its development for free. De-
spite the subsequent commercialization by Big Tech, remnants of Internet
One’s foundational protocols continue to serve users today, remaining free
and accessible to all, akin to common lands before enclosures.

3.5 The New Enclosures

The passage discusses the emergence of what the author terms as the "New
Enclosures," drawing parallels between historical land enclosures and the
modern-day enclosure of digital identity. It describes how the early internet,
or Internet One, was conceived as a non-commercial network but eventually
faced commercialization due to the rise of financialization and neoliberal-

12
ism. The financial sector, attracted by the complexity of computer systems,
reinvented itself, leading to the reinvention of the internet as a commodi-
fied space. This transformation resulted in the enclosure of digital identity,
previously held by individuals or the state, now owned and controlled by
corporations.
The narrative highlights the loss of control over personal data and identity
in the digital realm, where individuals are subject to constant surveillance
and exploitation by Big Tech and Big Finance. Resistance to this encroach-
ment is portrayed as increasingly futile, with individuals facing limited op-
tions for privacy and autonomy. The passage also explores the consequences
of this enclosure, such as the dependence on digital services and the erosion
of personal freedoms.
Overall, the text underscores the political and economic decisions that
have led to the commodification and enclosure of the digital commons, illus-
trating the profound implications for individuals and society as a whole.

3.6 Cloud Capital: Beginnings

The passage delves into the emergence of what the author terms "Cloud
Capital," which represents a new form of capital that leverages advanced al-
gorithms and technology to command and influence individuals. It compares
the innovators behind this era to ancient ironsmiths, driven by curiosity and
a desire to experiment. These technologists developed algorithms capable of
adaptive learning, mimicking human decision-making processes and eventu-
ally evolving into autonomous agents.
The narrative outlines three key leaps in the development of these algo-
rithms: the transition from simple, static algorithms to adaptive ones capa-
ble of reprogramming themselves (machine learning), the adoption of neural
networks inspired by the human brain’s structure, and the integration of re-
inforcement learning to enable algorithms to evaluate and improve their own
performance.
The passage underscores the opacity of these algorithms, even to their
creators, due to the vast amount of data they process and the complexity of
their decision-making processes. It discusses how individuals may be more
vulnerable to algorithms than to human influence, as algorithms can leverage
detailed knowledge about individuals while appearing mindless.
Furthermore, the text explores how individuals must engage in a Faus-
tian bargain with the owners of these algorithms, trading personal data and
attention for personalized services. It highlights the unprecedented power
of Cloud Capital to predict behaviors, guide preferences, and influence de-
cisions, ultimately reducing individuals to unpaid servants catering to the

13
algorithms’ needs.
Finally, the passage introduces the concept of "cloud proles" for workers
impacted by Big Tech in traditional workplaces and "cloud serfs" for all in-
dividuals subject to the influence of Cloud Capital in their daily lives. This
distinction underscores the pervasive influence of technology and algorithms
across society, fundamentally reshaping labor dynamics and individual au-
tonomy.

3.7 Cloud Proles

The deployment of modern technology to command poorly compensated
workers echoes historical labor conditions. Amazon warehouse workers, forced
to keep pace with computer algorithms dictating their tasks, resemble charac-
ters from "Modern Times" and "Metropolis," highlighting the dehumanizing
impact of mechanization.

3.8 Cloud Serfs

Don Draper, an emblem of Romanticism, embodied individualism and nos-
talgia, wary of science and technology. In contrast, cloud capital, through al-
gorithms, monetizes emotions and exploits consumer biases more effectively.
It leverages user-generated content to reinforce its value, with users unwit-
tingly contributing to its reproduction without compensation, akin to feudal
serfs. While workers are transformed into cloud proles under algorithmic
control, the true revolution lies in the conversion of billions into voluntary,
unpaid cloud serfs, enriching a select few billionaires.

3.9 Wither Markets, Hello Cloud Fiefs

In a realm dominated by Amazon, traditional notions of capitalism dissolve.
Amazon’s algorithmic control extends beyond mere commerce, shaping every
aspect of the digital town it governs. This dystopian landscape, reminiscent
of feudalism, is a stark departure from free markets. Jeff, the omnipotent
owner, not only dictates commerce but regulates social interactions through
his algorithm, fostering isolation and dependency. The manipulation of de-
sires through Alexa further consolidates Jeff’s power, blurring the lines be-
tween consumer and producer.
This consolidation of power challenges liberal and socialist ideologies
alike. Amazon’s digital fiefdom, rooted in feudal Europe, is sustained by
cloud-based capital, eroding market autonomy. Jeff’s relationship with ven-
dors mirrors feudal lord-vassal dynamics, with digital fiefs granted in ex-

14
change for fees. Alibaba and other platforms replicate this model globally.
Even industrial sectors like Tesla are transformed into cloud fiefs, with every
aspect of production feeding into cloud capital.
The rise of cloud proles, the erosion of markets, and the emergence of
cloud fiefs redefine economic relationships. Advancements in technology have
reshaped labor dynamics, creating a world where individuals unwittingly
contribute to cloud capital, perpetuating the dominance of digital overlords.

3.10 Back to Your Question

If I had to name one thing I learned from you, it would be the ability to
relish contradictions. You worshipped iron yet lamented its dehumanizing
effects. You aligned with communists despite the risk of ending up in the
gulag. Similarly, your fascination with the machinery of the steel factory was
tempered by horror at its alienating impact on workers.
Cloud capital presents a contradiction that you would appreciate: the
ability to admire and detest it simultaneously. It holds the key to under-
standing the internet’s impact on capitalism.
Like capitalism before it, cloud capital emerged from the privatization of
a crucial common resource: Internet One. While both are vast production
and behavior-modification machines, cloud capital revolutionizes the exercise
of power through automation, rendering managers and marketers obsolete.
Conventional manufacturers now depend on cloudalists to sell their goods,
resembling vassals under feudal overlords. Thus, cloud capital represents
both the triumph and demise of capitalism, solidifying capital’s dominance
while ushering in a technofeudal system.
In your youth, you dreamed of labor breaking free from capitalist markets,
but instead, capital has liberated itself. However, capitalism itself is waning,
as profit becomes optional for the cloudalists, signaling a profound shift in
economic dynamics.

4 The Rise of the Cloudalists and the Demise

of Profit
In August 2020, amid the worst recession in history caused by the pandemic,
the London Stock Exchange unexpectedly rose by 2.3
Traders in London realized that dire situations prompted central banks
to print money, which flowed into the stock market, driving prices up. This
trend extended globally as central banks printed money to stabilize the econ-
omy, but it primarily benefited Big Tech. While traditional conglomerates

15
hesitated to invest due to economic uncertainty, Big Tech thrived, expanding
its cloud capital infrastructure and creating jobs in cloud-related fields.
The pandemic accelerated the shift towards cloud capital, as state money
flooded markets, reshaping the economy’s dynamics. This transformation
had roots in the 2008 financial crisis when central banks began printing
money extensively, altering traditional notions of profit.

4.1 The Secret of the New Ruling Class

The emergence of cloud capital represents a significant departure from pre-
vious technological advancements, which did not necessarily lead to the cre-
ation of new forms of capital or challenge the dominance of existing ruling
classes. Unlike earlier innovations like electricity grids or telegraphs, the tech-
nologies behind cloud capital have fundamentally transformed the nature of
capital itself.
Cloud capital has become a multifaceted force, capable of capturing at-
tention, manufacturing desires, exploiting proletarian labor (cloud proles),
eliciting massive amounts of free labor (from cloud serfs), and establishing
entirely privatized digital transaction spaces (cloud fiefs like amazon.com).
As a result, the owners of cloud capital—the cloudalists—have risen to promi-
nence as a revolutionary class, displacing traditional capitalists from the top
of society’s hierarchy.
The cloudalists have fundamentally altered various aspects of society, in-
cluding the concept of commodities, the idea of individual autonomy, the
ownership of identity, cultural propagation, political context, the nature of
the state, and geopolitical dynamics. But how did they finance this trans-
formation?
Unlike early industrialists who relied on slave labor and looted resources,
or later capitalists who benefited from the conjured money of private bankers,
the cloudalists employed a subtler strategy. They tapped into the rivers of
cash being printed by the central banks of developed capitalist states.
This strategy amounted to a coup of sorts, allowing the cloudalists to
access vast sums of money to build a new type of capital stock. This capital
stock, funded by state monies and bolstered by citizens’ free labor, enhanced
the cloudalists’ power to extract surplus value from both proletarians and
traditional capitalists.
The cloudalists did not need to convince central banks to fund them
directly; instead, they leveraged the existing monetary policies and structures
of developed capitalist states to their advantage.

16
4.2 2008’s Unintended Consequences
The aftermath of the 2008 financial crisis saw central banks around the world
embarking on a massive money-printing spree, channeling funds to financiers
in an effort to stabilize the economy. While policymakers believed they were
saving capitalism from another Great Depression, they inadvertently laid the
groundwork for the emergence of cloud capital.
The decision to bail out failed banks and irresponsible bankers while
imposing austerity measures on workers and the middle class created a double
standard that eroded trust in the political establishment. Austerity measures
not only harmed those in need but also hindered investment, as reduced
public expenditure exacerbated the decline in private spending.
With investment already hampered by the crash of 2008 and further sti-
fled by austerity, injecting money into the financial sector failed to revive
economic growth. Instead, the newfound wealth flowed disproportionately
to the wealthy elite, exacerbating inequality without benefiting the broader
population.
The post-2008 era witnessed a unique form of inequality, where the in-
comes of the poor actually declined while the rich amassed even greater
wealth. This toxic combination of wealth concentration and political dis-
enchantment paved the way for poisoned politics and prolonged economic
stagnation.
The enrichment of the ultra-rich, coupled with the failure of traditional
investment channels, ultimately led to the funding of cloud capital as a new
form of capital accumulation.

4.3 Poisoned Money, Gilded Stagnation

The term "inflation" typically denotes a widespread increase in the prices
of goods and services, reflecting a decline in the value of money. Under
capitalism, money’s exchange value is determined by its purchasing power,
while its market price, represented by interest rates, reflects the demand
for borrowing. Following the 2008 financial crisis and during the pandemic,
inflation remained low, but interest rates plummeted, even turning negative
at times.
The decline in interest rates failed to stimulate investment as expected.
Instead, capitalists interpreted it as a sign of economic distress, leading them
to hoard cash rather than invest in productive ventures. Furthermore, the in-
fluence of failed bankers over central banks and governments exacerbated the
situation. Central banks injected massive amounts of cash into the financial
system, worsening the interest rate dilemma.

17
 The concept of negative prices, typically associated with undesirable
goods, became applicable to money itself. Central banks treated money as a
burden, akin to toxic waste, leading to a paradoxical situation where money
had a negative price. This reflected a breakdown in the collective ability of
money to facilitate productive investment and economic growth.
The influx of poisoned money into non-productive assets, such as real
estate, art, and speculative ventures like Bitcoin and NFTs, further stifled
capitalism’s dynamism. While bankers enjoyed socialism, the rest of soci-
ety endured austerity, resulting in a state of gilded stagnation. Amidst this
backdrop, cloud capital emerged as the sole beneficiary, thriving in an envi-
ronment of poisoned money and stagnant capitalism.

4.4 How Profits Became Optional for the Cloudalists

The concept of "the right" in politics, rooted in the pursuit of private profit
as the cornerstone of a prosperous society, contrasts with leftist ideologies.
Adam Smith, considered the father of capitalism, emphasized the pivotal role
of profit in driving investment and innovation, leading to societal progress.
However, following the 2008 financial crisis, and exacerbated by central
banks’ response to it, a significant shift occurred. Central banks flooded
financial markets with unprecedented amounts of money, disrupting the tra-
ditional role of profit as capitalism’s driving force. Investment and innovation
were no longer incentivized by profit, but rather sustained by central bank
money.
Cloudalists like Jeff Bezos and Elon Musk capitalized on this environment,
rapidly expanding their cloud capital without the need for traditional meth-
ods of capital acquisition. They leveraged the influx of central bank money to
bolster their market dominance, indifferent to the traditional profit motive.
The era saw a phenomenon dubbed the "everything rally," where asset
prices surged irrespective of profitability. Traditional capitalists diverted
their growing paper wealth into conventional assets, while cloudalists focused
on consolidating their control over the market.
Companies like Amazon and Tesla exemplified this trend, experiencing
exponential growth in share value despite minimal profits. The cloudalists
utilized their appreciating shares as collateral to finance infrastructure, tech-
nology, and acquisitions, cementing their ascent in a profit-optional economy.
As profits became optional for the cloudalists, the foundational principles
of capitalism underwent profound disruption, with far-reaching implications
for the economic landscape.

18
4.5 Private inequities
The text illustrates how the acquisition of companies by private equity firms
often leads to asset-stripping and job losses, exemplified by Gillian’s expe-
rience in a private care provider company. After being bought by a private
equity firm, the company splits into two entities, with one owning the prop-
erty and charging rent to the other, resulting in increased financial burdens.
Eventually, the care provider is forced to shut down due to unsustainable
conditions, while the private equity firm profits from dividends and increased
property values. This process, termed "dividend recapitalisation," reflects a
shift towards financialisation and rent-seeking rather than value creation.
Moreover, the text discusses the rise of financial giants like BlackRock, Van-
guard, and State Street, which exert significant influence over the American
economy by owning substantial shares in numerous major companies. This
concentration of power is attributed to central bank policies that flooded the
market with money post-2008, enabling the rise of financial behemoths and
undermining traditional capitalist dynamics. The text concludes by lament-
ing the loss of capitalism’s dynamism and the rise of a financial oligarchy
that exploits the system for rent extraction, echoing concerns voiced by early
economists like Adam Smith.

4.6 Back to your question

In 1993, I faced your challenging question about the potential of the internet,
yet I was not prepared to answer. Coming off the heels of socialism’s collapse
and witnessing the rapid expansion of capitalism, I harbored hopes for a
progressive alternative. Enthralled by the early internet and inspired by
emerging technologies like 3D printing, I envisioned cooperatives using these
tools to challenge corporate power. However, I failed to anticipate the rise of
a new form of capital—cloud capital—that would transform corporations and
create a new ruling class. The privatisation of the internet commons, coupled
with the 2008 financial crisis, paved the way for this new era. As cloud capital
gained prominence, it reshaped the dynamics of power, leveraging technology
to exert control over humanity and perpetuate exploitation.
Remarkably, this transformation was not planned; it emerged unexpect-
edly, bypassing traditional power structures. Now, we face questions about
the sustainability of cloudalist dominance and whether traditional capital-
ist conglomerates could stage a comeback. Additionally, there’s debate over
whether life under cloudalists differs fundamentally from capitalism, prompt-
ing discussions about terminology—technofeudalism, hyper-capitalism, or
platform capitalism.

19
 Drawing parallels with Hesiod’s allegory of gods above the clouds, I pon-
der whether mortals can challenge the cloud-dwelling aristocracy’s power.
Just as Prometheus stole fire from the gods, what role does a modern Prometheus
play in the Age of Cloud Capital? These questions shape the discourse as
we navigate the complexities of our digital age.

5 What’s in a Word?
Set on the island of Lesbos, "Daphnis and Chloe" is the oldest surviving
romantic novel, written in the second century AD by Longus. It tells the
story of two young lovers who are so innocent they do not understand their
feelings until Chloe begins to search for words to describe Daphnis’ beauty.
Simone Weil, in 1937, emphasized the importance of properly defining
words to grasp concrete realities and activities. She believed that precise
language could save lives by clarifying thought and discrediting meaningless
words.
The choice of words to describe the system we live in holds significant
implications. Whether we label it technofeudalism or hyper-capitalism can
shape our perceptions and actions, influencing whether we perpetuate or
challenge the existing system.
Reflecting on the Industrial Revolution era, had people hesitated to use
the term capitalism and instead referred to it as industrial or market feudal-
ism, they would have missed recognizing the transformative changes occur-
ring around them.
Today, capitalism dominates almost every aspect of society, with capital-
ists controlling institutions and markets ruling billions of lives. Describing
the current system as hyper-capitalism or platform capitalism would overlook
the profound transformation underway.
The rise of cloud capital, fueled by the enclosure of the internet commons,
has created a new form of capital that can reproduce itself at no cost to
its owner, turning individuals into cloud serfs. This shift has led to the
dominance of Big Tech companies like Amazon, operating as cloud fiefs, and
the establishment of collective monopoly power by entities like the Big Three.
In essence, what distinguishes this world from the previous one is the
triumph of rent over profit, demanding a reevaluation of the term capitalism
in favor of technofeudalism.

20
5.1 Rent’s revenge: how profit succumbed to cloud rent
What would it take for capitalism to die? In the past, many believed it
would succumb indirectly to its own creation, the proletariat. The clash
between capitalists and workers seemed inevitable, leading to the triumph of
good over evil and the healing of human divisions. However, this vision of a
post-capitalist society has not materialized. Instead, capitalism faces a new
threat: the rise of the cloudalists.
Under capitalism, profit and markets were the pillars of the system. How-
ever, the emergence of cloud capital has undermined these pillars. Cloudal-
ists, such as Apple and Google, have exploited their control over digital
platforms to extract rent from third-party developers. This cloud rent has
become a dominant force in the global economy, funded by central bank
money and bolstered by private equity.
In addition to digital platforms, cloudalists have extended their influence
to physical goods through ecommerce sites like Amazon. Vassal capitalists,
dependent on these platforms for access to customers, contribute to the pro-
liferation of cloud rent.
The expansion of cloud rent marks a shift away from traditional profit-
driven capitalism. Despite the growth of capitalist activity, capitalism itself
is withering as cloud fiefs replace traditional markets. Technofeudalism, char-
acterized by the dominance of cloudalists and the exploitation of cloud rent,
is emerging as the dominant economic system.

5.2 Capitalism on steroids?

Some argue that the rise of cloudalists, such as Apple, Google, and Facebook,
represents capitalism on steroids rather than the emergence of technofeudal-
ism. They point to the massive investments made by these companies in
high-tech capital and the creation of new digital commodities. However, this
perspective overlooks the true nature of the investments made by cloudalists.
While it is true that cloudalists invest in technology and innovation, their
ultimate goal is not to produce commodities for profit. Instead, their invest-
ments are aimed at capturing and modifying our attention, thereby extracting
cloud rent from vassal capitalists who rely on digital platforms for access to
customers.
Unlike traditional capitalists, who focused on monopolizing markets and
deploying capital for profit, cloudalists are not driven by market competi-
tion. Battles between cloudalists, such as the rivalry between TikTok and
Facebook, are not based on price or quality but on the creation of new cloud
fiefs to attract users.

21
 Furthermore, the investments made by cloudalists extend beyond tech-
nology and innovation to politics, marketing, and cartel tactics, all aimed at
maximizing rent extraction rather than profit generation.
In light of these factors, the term "technofeudalism" better captures the
essence of the current socio-economic system, where rent has replaced profit
as the driving force. Properly defining and labeling this system is essential
for understanding its implications and the challenges it poses.

5.3 The Technofeudal Method to Elon Musk’s Twitter

Madness
Elon Musk’s acquisition of Twitter exemplifies the concept of technofeudal-
ism, showcasing the intersection of wealth, power, and influence in the digital
age. Musk, often likened to a modern-day Thomas Edison, has reshaped en-
tire industries with his ventures, from car manufacturing to space exploration.
Despite his achievements, Musk’s purchase of Twitter for billions of dollars
underscores his pursuit of entry into the elite ruling class of "cloudalists,"
individuals who wield immense influence and control over digital platforms.
Through Tesla and SpaceX, Musk has leveraged technology to generate
vast amounts of data and capital, yet he has lacked direct access to the
lucrative realm of cloud capitalism dominated by tech giants like Amazon
and Google. Twitter, with its global reach and potential for monetization,
represents an opportunity for Musk to establish his own digital fiefdom and
ascend to the ranks of the cloudalists.
Musk’s vision for Twitter extends beyond a mere social media platform;
he envisions it as an "everything app" capable of capturing users’ attention,
shaping consumer behavior, and extracting value from both users and vendors
alike. By integrating Twitter into his existing network of data-generating
ventures, Musk aims to enhance its cloud capital and solidify his position
within the technofeudal hierarchy.
However, the success of Musk’s Twitter venture remains uncertain, hing-
ing on his ability to navigate the complexities of the digital landscape and ef-
fectively leverage the platform’s potential. Regardless of the outcome, Musk’s
foray into Twitter underscores the emergence of technofeudalism as a defining
paradigm of the digital age, reshaping power dynamics and socioeconomic
structures on a global scale.

22
5.4 The Technofeudal Underpinnings of the Great In-
flation
The emergence of technofeudalism has deepened pre-existing sources of in-
stability, leading to new existential threats such as the Great Inflation and
cost-of-living crisis following the recent pandemic. Central banks’ response
to the 2008 financial crisis, characterized by massive money printing and the
prioritization of cloud capital accumulation, laid the groundwork for the dom-
inance of rent over profit in the economy. This shift contributed to deeper
stagnation and economic instability.
During the pandemic, governments injected trillions of dollars into the
economy to support citizens, but much of this money ended up bolstering
the share prices of Big Tech corporations, leading to a significant increase
in billionaires’ wealth while millions struggled with unemployment. Supply
chain disruptions caused by lockdowns further exacerbated the situation,
leading to a surge in the prices of essential goods and services, thus triggering
the Great Inflation.
Despite initial hopes that inflation would be transitory, it persisted due
to complex dynamics within society. Inflation is not solely a monetary phe-
nomenon but a manifestation of power dynamics, where various stakeholders
engage in a power game to determine their bargaining power. In a world
where cloud capital dominates, traditional capital is further displaced, has-
tening the spread of technofeudalism.
The Great Inflation not only results in superprofits for conglomerates but
also strengthens the grip of technofeudalism on society’s productive fabric, as
traditional capital is marginalized by new cloud capital. This trend perpet-
uates economic inequality and instability, highlighting the profound impact
of technofeudalism on modern society.

5.5 The Case of German Cars and Green Energy

The Great Inflation posed significant challenges for German car manufactur-
ers, as rising fuel prices increased production costs and deterred customers.
Despite concerns over possible de-industrialization, German carmakers are
likely to maintain production levels by transitioning to electric vehicles. How-
ever, this shift presents new challenges as electric cars rely more on cloud
capital than traditional capital, highlighting the need for German industry
to adapt to this new paradigm.
Similarly, the energy sector faced upheaval during the pandemic, with
Big Oil and Gas reaping significant profits as energy prices surged. However,
the rise of cloud capital is reshaping the sector, favoring renewables over

23
fossil fuels. Renewable energy, with its decentralized and cloud-intensive
infrastructure, is emerging as a viable alternative, despite initial setbacks
caused by the Great Inflation.
While the short-term effects of the Great Inflation on the economy are
uncertain, its long-term impact on labor’s political power and the dominance
of cloud capital is undeniable. However, questions remain about the future
of technofeudalism as central banks halt money printing and industries ex-
perience fluctuating fortunes.
The ongoing class war and shifting power dynamics will ultimately deter-
mine the trajectory of the Great Inflation and its implications for technofeu-
dalism.

5.6 Back to your question :Is Capitalism not Back on

Track?
Despite the economic tumult following the pandemic, mainstream economic
commentators viewed the Great Inflation as a temporary disruption rather
than a sign of underlying transformation. Rising inflation was attributed to
central banks printing too much money and governments overspending during
the pandemic. As central banks raised interest rates to control inflation,
commentators interpreted it as a return to familiar patterns of authority,
akin to the Stuart Restoration in British history.
The decline in stock prices, particularly among Big Tech companies, dur-
ing the Great Inflation was seen as a correction rather than a fundamental
shift. Many left-wing observers found solace in the apparent return of the
old capitalist order. However, the author argues against this interpretation,
asserting that technofeudalism has reached critical mass and will continue to
dominate despite market fluctuations.
The author highlights three key points: First, the central bank money
that fueled technofeudalism has built up critical infrastructure and is here
to stay. Second, central banks cannot afford to stop money printing com-
pletely, as it would risk financial instability. Third, cloud capital, bolstered
by developments such as the transition to green energy, is expanding its do-
main and reshaping power dynamics away from terrestrial capital towards
technofeudalism.
In conclusion, the author advocates for the use of the term "technofeu-
dalism" to understand contemporary socio-economic conditions, emphasizing
its explanatory power in analyzing the ongoing power struggle between the
United States and China.

24
5.7 Technofeudalism’s Global Impact: The New Cold
War
In May 2019, President Donald Trump’s decree effectively banned Huawei
from using Google’s Android operating system on its smartphones, marking
the beginning of a new phase in the U.S.-China relationship. The subsequent
escalation of tensions, particularly in October 2022 with sweeping restrictions
on semiconductor sales to China by the Biden administration, signaled a
significant shift towards a New Cold War.
While national security concerns were cited as reasons for these actions,
the author questions why such concerns emerged suddenly, given longstand-
ing economic ties between the U.S. and China. The answer lies in the evolu-
tion of the global financial system since the Nixon Shock of 1971, when the
U.S. abandoned the gold standard, leading to the dominance of the dollar as
the world’s reserve currency.
This dominance allowed the U.S. to finance its deficits by attracting for-
eign investment in Wall Street and maintaining control over key sectors of
its economy. However, with the rise of technofeudalism and the dominance
of cloud capital, the U.S. faces a new challenge: preventing foreign cloud
capitalists, particularly from China, from gaining control over critical sectors
of the economy.
Thus, Trump’s ban on Huawei and Biden’s economic restrictions on Chi-
nese tech companies can be seen as efforts to protect U.S. hegemony in a
technofeudal world where cloud capital knows no borders. In this context,
the New Cold War between the U.S. and China represents a struggle for
dominance in the age of technofeudalism.

5.8 Technofeudalism with Chinese characteristics

In this section, the author delves into the dynamics of global economic rela-
tions and the emergence of what he terms "Technofeudalism-with-Chinese-
characteristics" in the aftermath of the 2008 financial crisis.
The Dark Deal between the U.S. and China, similar to the Minotaur’s
pact, involved the U.S. maintaining demand for Chinese products and shifting
its industrial production to China in exchange for Chinese investment in the
U.S. finance, insurance, and real estate sectors (FIRE). This arrangement led
to the exploitation of workers on both sides of the Pacific.
The crash of 2008 had two significant effects: it strengthened China’s
position in the global surplus recycling mechanism, and it accelerated the
buildup of cloud capital in both the U.S. and China. China stabilized global
capitalism by increasing domestic investment, which, coupled with the accu-

25
mulation of dollar surpluses, allowed it to become a major investor globally
through initiatives like the Belt and Road Initiative.
China’s post-2008 investment drive and the rise of cloud capital in the
U.S. paralleled each other. China’s Big Tech companies, including Alibaba,
Tencent, Baidu, Ping An, and JD.com, became formidable competitors to
their Silicon Valley counterparts. The seamless integration of communica-
tion, entertainment, ecommerce, and foreign investments with online finan-
cial services created a powerful cloudalist agglomeration in China. Chinese
Big Tech’s integration with government agencies for various purposes, from
urban regulation to surveillance, showcased the comprehensive reach of their
cloudalist conglomerates.
The author argues that China’s cloudalists have successfully merged cloud
capital and finance, creating a potent force that American cloudalists are
struggling to emulate. This, according to the author, marks the emergence
of technofeudalism with Chinese characteristics, setting the stage for a geopo-
litical struggle for hegemony between the U.S. and China, dividing the world
into conflicting super cloud fiefs.

6 Technofeudal geopolitics: The emerging ’threat’

of China’s cloud finance
The author explores the evolving dynamics of global economic relations, par-
ticularly focusing on the implications of China’s growing influence in the
realm of cloud finance.
The longstanding reign of the U.S. dollar as the world’s reserve currency
has benefited many countries, including China and Germany. This arrange-
ment allowed countries with trade surpluses to convert their excess produc-
tion into property and rents in the United States. However, it also imposed
significant burdens on the U.S. economy, particularly on working and middle-
class Americans.
The Dark Deal between the U.S. and China, based on the ongoing domi-
nance of the dollar, initially served the interests of both countries. However,
the rise of cloud capital changed this dynamic.
The author contrasts the traditional trade of physical goods, such as alu-
minum, with the revenue generated by Chinese-owned platforms like TikTok.
While the former depends on the dollar’s supremacy and trade imbalances,
the latter can generate revenue directly from the U.S. market without relying
on traditional trade mechanisms.
As Chinese cloud capital grows, China’s ruling class becomes less depen-

26
dent on the U.S. market and more resistant to U.S. regulation. In response,
the Trump administration imposed restrictions on Chinese technology com-
panies like Huawei and ZTE, as well as attempted to limit the influence of
platforms like TikTok.
This shift in geopolitics reflects a struggle between technofeudal class
interests rather than traditional political ideologies. The U.S. aims to main-
tain its dominance in the face of China’s rising cloud finance, reminiscent of
previous economic conflicts such as the Plaza Accord with Japan in 1985.

6.1 Technofeudal geopolitics: How Ukraine helped di-

vide the world into two super cloud fiefs
The author examines the impact of recent geopolitical events, particularly
the conflict in Ukraine, on the global balance of power, with a focus on the
emergence of two dominant cloud fiefs.
Unlike Japan’s compliance with U.S. pressure in the 1980s, China resisted
similar attempts by the Trump administration, leveraging its own Big Tech
and cloud finance capabilities. Despite tensions, the Dark Deal between
Chinese capitalists and American rentiers persisted.
However, the situation changed dramatically when the Federal Reserve
froze billions of dollars belonging to Russia’s central bank in response to
the invasion of Ukraine. This unprecedented move undermined confidence
in the dollar’s dominance and prompted a shift towards alternative financial
systems.
China’s introduction of a digital yuan further accelerated this trend. By
bypassing traditional banking intermediaries, the digital yuan offered a more
efficient and independent means of international transactions, appealing to
both Russian and non-Russian investors wary of U.S. control.
Recognizing the threat posed by China’s growing cloud finance, the Biden
administration imposed a total export ban on microchips to China, aiming
to cripple its technological advancement. While this move may slow China’s
progress in the short term, it also incentivizes China to fully embrace its
cloud finance capabilities and attracts foreign investors to Chinese financial
markets.
The conflict in Ukraine, reminiscent of past geopolitical shifts, accelerates
the transition towards a bipolar world dominated by American and Chinese
cloud fiefs. The implications of this division for global stability and cooper-
ation are profound, echoing the neocolonial conflicts of the past and raising
concerns about the future trajectory of technofeudalism.

27
7 The spectre of technofeudalism over Europe,
the Global South, the planet
The author reflects on the historical and contemporary impact of U.S. eco-
nomic dominance on Europe and the Global South, highlighting the emer-
gence of technofeudalism as a significant threat.
Following the collapse of the Bretton Woods system in 1971, American
capitalism faced successive crises, leaving Europe weaker and more divided.
Despite efforts to shield Europe from U.S. economic volatility, its dependence
on the Dark Deal with America persisted, hindering the success of projects
aimed at achieving greater autonomy.
Europe’s reliance on the Dark Deal has left it vulnerable to the shifting
global power dynamics, particularly the rise of cloud capital. Unlike China,
Europe lacks a dominant Big Tech company and remains reliant on Wall
Street, rendering it increasingly irrelevant in the New Cold War.
Meanwhile, the Global South faces a severe debt crisis exacerbated by the
Great Inflation, forcing governments to choose between defaulting on dollar
debts or accepting exploitative loans from institutions like the International
Monetary Fund.
As the world divides into two super cloud fiefs based on the dollar and
yuan, respectively, countries in the Global South are forced to align with one
or the other, escalating geopolitical tensions.
The author warns that the rise of technofeudalism poses significant obsta-
cles to addressing climate change. The division of the global green agenda
between two competing superpowers threatens coordinated efforts to limit
climate warming, while the financialization of energy systems by oligarchs
undermines democratic control over energy practices.
In light of these challenges, the author urges the younger generation to
recognize the interconnection between resisting technofeudalism and averting
climate catastrophe, emphasizing the urgent need for collective action.

7.1 Back to your Question: who wins and who loses ?

The text discusses the transformation of globalisation into technofeudalism,
highlighting the consequences for various stakeholders. Initially, it outlines
the expansion of globalisation after 1991, with financial capital and produc-
tion chains connecting billions of workers but often resulting in exploitation
and despair. The author attributes these contradictions to the "Dark Deal,"
which enriched capitalists while causing misery to migrate to the Global
North.

28
 The emergence of technofeudalism exacerbates these issues, with unpaid
cloud labor and wage squeezes leading to a reduction in aggregate demand
and increased economic crises. The war between the US and Chinese tech
giants further complicates the landscape, with potential repercussions for
workers and capitalists on both sides. Companies like Apple and Tesla face
uncertainty due to their reliance on global value chains.
Technological advancement strengthens cloud capital, while de-globalisation
accelerates, leading to new fault lines and the division of the world into su-
perstates. Democracy suffers as power consolidates among a small group of
cloudalists. Surprisingly, the Chinese Communist Party emerges as a po-
tential force to counterbalance cloudalist power, although its actions remain
uncertain.
In conclusion, the text argues that Western states’ weakness allowed cloud
capital to dominate, leading to the rise of technofeudalism. This challenges
traditional notions of state power and highlights the need for new approaches
to address the imbalances created by globalisation.

7.2 Escape from Technofeudalism

The text recounts an art performance by Stelarc in 2000, where he operated
a robotic exoskeleton named Movatar controlled remotely by internet par-
ticipants. Movatar’s awkward movements symbolize the evolving relation-
ship between humans and technology, raising questions about the impact
of the internet on society. The author reflects on whether the internet is
capitalism’s friend or foe and its implications for the human condition. In
hindsight, Movatar foreshadowed the transition from traditional capital to
cloud capital, becoming a symbol of humanity’s future under the influence
of hyper-connected, algorithm-driven, cloud-based capitalism.

7.3 The Death of the Liberal Individual

The text reminisces about the author’s father, who embodied the ideal of
the liberal individual in a bygone era when personal and professional lives
could be neatly compartmentalized. However, in today’s technofeudal so-
ciety, where personal identity is curated online and every choice becomes
an act of self-representation, the notion of autonomy and self-ownership has
been eroded. Cloud capital has commodified identity, fragmented individuals
into data points, and diminished their capacity to focus. Furthermore, the
internet amplifies prejudices and bigotry, exacerbating societal divisions and
undermining the liberal ideal of self-possession. The author suggests that

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reclaiming liberty and self-ownership will necessitate a fundamental restruc-
turing of property rights and a collective effort to civilize and socialize cloud
capital.

7.4 The Impossibility of Social Democracy

The author discusses the challenges of taming technofeudalism through pol-
itics, contrasting it with the era when social democracy had some success in
restraining industrial capitalism. Social democrats acted as mediators be-
tween labor and industry, but their effectiveness declined as power shifted
to finance. The author argues that the nature of cloud capitalism makes
traditional regulatory approaches ineffective. Additionally, the ideological
landscape has shifted, with the left embracing relativism while the right pro-
motes unalloyed truths. The decline of industrialization has fragmented the
working class, leading to a focus on identity politics rather than class strug-
gle. The author concludes that a new approach rooted in leftist principles is
needed to address the complexities of technofeudalism.

7.5 Crypto’s False Promise

The text discusses the rise of cryptocurrency as a reaction to technofeudal-
ism, drawing parallels to historical utopian visions. It explains the initial
allure of cryptocurrencies like Bitcoin, which promised to bypass traditional
financial institutions and offer emancipation from centralized control. How-
ever, it critiques the evolution of cryptocurrency into a volatile currency
market dominated by libertarian ideologies. The text highlights how cryp-
tocurrency has ultimately benefited Wall Street and Big Tech, rather than
challenging the existing power structures. Despite the potential of blockchain
technology, the author argues that it alone cannot address the systemic issues
of capitalism and technofeudalism. Instead, the text calls for a reexamina-
tion of alternatives to technofeudalism and questions the viability of social
democracy in the current landscape.

7.6 Imagining Another Now

The text explores the challenge faced by the left in providing a convincing
alternative to the current socio-economic system. It reflects on the author’s
encounter with a skeptic in a pub who questioned the feasibility of social-
ism without a clear blueprint for implementation. Drawing inspiration from
Karl Marx’s approach, the author embarks on the task of outlining a realistic
utopia that combines collective ownership, personal freedom, innovation, and

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democracy. Faced with the daunting task of articulating such a blueprint,
the author turns to fiction, creating characters representing different per-
spectives to engage in debates within a parallel reality. The resulting book,
Another Now: Dispatches from an alternative present, offers glimpses into a
technodemocratic society as an alternative to technofeudalism.

7.7 Democratised Companies

Imagine a corporation where each employee receives a single share upon hir-
ing, granting them a vote in company decisions. All decisions, from hiring
to strategy, are made collectively through the company’s intranet. Pay is
democratically determined, with revenues divided into slices for fixed costs,
RD, basic pay, and bonuses. Proposals are voted on electronically, with a
majority needed for adoption. Employees also allocate tokens to colleagues
annually, determining the bonus distribution. This approach eliminates the
wage-profit distinction, financialization, and private equity, fostering com-
petitive markets and entrepreneurship.

7.8 Democratised Money

In this alternative system, the central bank provides everyone with a free dig-
ital wallet, including a monthly stipend credited to each account, effectively
implementing universal basic income. Additionally, the central bank pays
interest to those who shift savings from commercial banks to the new digital
wallet. This migration of savings to the public digital system reduces re-
liance on private banks and safeguards against financial instability. Central
banks operate as monetary commons overseen by a Monetary Supervision
Jury comprising citizens and experts. Investment is facilitated through di-
rect lending rather than share ownership, and taxation is based on fixed
levies on company revenues and property. Internationally, a new financial
system ensures wealth transfers to the Global South and regulates trade im-
balances through a digital international accounting unit called the Kosmos.
Imbalance levies and surge levies curb speculative money movements and
fund green investments in developing countries. These reforms revolutionize
economic structures, democratize workplaces, and diminish the influence of
conglomerates, while balancing international trade and financial flows.

7.9 The Cloud and the Land as a Commons

In this alternative reality, everyday life is intertwined with community-driven
systems that prioritize public good over profit. Media sites, archaeology sec-

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tions, and travel apps are run by local public institutions owned by munic-
ipalities and controlled by residents chosen through lotteries and elections.
Digital world maps offer access to newsfeeds from diverse locations, funded
by small payments from users’ central bank accounts. Transportation ser-
vices are provided by driver cooperatives and public transport staff, ensuring
fair treatment and democratic control over algorithms. At work, employee-
shareholders participate in decision-making through digital platforms, fos-
tering shared responsibility and mutual respect. Housing is managed by
County Associations, utilizing a Permanent Auction Subletting Scheme to
fairly distribute commercial space and fund social housing. Land and prop-
erty ownership are redefined, with decision-making power distributed among
randomly selected locals. Nationally, a Citizens’ Assembly functions as a
deliberative body to shape legislation debated in Parliament, restoring the
democratic process to governance.

7.10 A Cloud Rebellion to Overthrow Technofeudalism

In his book, the author outlines the emergence of technofeudalism as the
dominant system, surpassing capitalism. This shift has left many on the
left disheartened, as the replacement of capitalism by socialism has not ma-
terialized. Moreover, traditional methods of organizing the proletariat are
insufficient in the face of cloud capital, which exploits the labor of unwaged
cloud serfs. To challenge technofeudalism, the author proposes a coalition
that includes not only the traditional working class but also cloud serfs, cloud
proles, and even some vassal capitalists.
The author acknowledges the challenges posed by the physical isolation
of individuals in the digital age but also sees the potential for coalition-
building and collective action facilitated by cloud technology. They envision
a form of "cloud mobilization," where minimal personal sacrifice can lead to
significant collective and personal gains. This approach could disrupt the
control of cloudalist enterprises over billions of people.
The author proposes various forms of resistance, including targeted strikes
against cloudalist companies, payment strikes against private utility com-
panies, consumer boycotts, and mass withholding of pension contributions.
They also suggest leveraging technology to expose hidden connections be-
tween cloudalists, government agencies, and other actors.
While the path to challenging technofeudalism is neither easy nor in-
evitable, the author believes that the potential for reclaiming freedom and
democracy lies in the hands of those willing to take action.

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7.11 Back to Your Question, One Last Time
The author reflects on the insights of their younger self regarding the nature
of private capital and its tendency to concentrate power in the hands of the
few. They recall their skepticism towards the failure of social democracy
without the democratization of work and the ultimate defeat of the Soviet
experiment in taking capital under society’s control.
The collapse of the Soviet Union paved the way for the rise of global
capitalism, culminating in the emergence of cloud-based capital, which wields
immense power over both minds and markets. Despite this grim reality, the
author finds hope in the potential for utilizing new tools to establish a new
commons and realize a vision of bottom-up communism.
Acknowledging the uncertainty of the path ahead, the author draws par-
allels to past revolutions and emphasizes the importance of perseverance in
the face of adversity. They highlight the necessity of collective action to
reclaim ownership of both physical and mental wealth from cloud capital,
envisioning a future where individuals unite to break free from the chains of
technofeudalism.

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