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To: Joe Btfsplk who wrote (436)

4/29/2016 2:02:34 AM

From: elmatador

Read Replies (1) | Respond to of 445

Pricing mechanisms have been distorted and we do not know the true costs of goods and services

"... technocratic elites who, flush with cash from desperate investors, allocate money as they see fit based on purely subjective criteria, favouring some groups over others, and using proceeds from their advertising business to fund exotic “moonshot” projects of dubious civic significance. (Driverless cars, rockets for trips to Mars, Space tourism, delivery by drones)
...
“ slowdown in globalisation, world trade and growth” might finally reveal the true costs of the services we are using. But there’s an even more basic threat on the horizon: the eventual meltdown of advertising – one industry that, like God, is supposed never to fail.

Cross subsidization is when Google, use the proceeds from ads revenue to fund exotic projects like driverless cars and encroach on the telecom sector to build fiber to the home or makes Google Earth and YouTube free.

Another case of cross subsidization is when Facebook use ads revenue to finance Whatsapp that provides free of charge communication. You and me do not know how much the Internet service costs because of cross subsidization

Because of the weight tech has in the world economy, these distortions will cause ripple effects in the overall economy and will lead to a crash tech bubble 2.0.