They are all based on capital economy but operate under different rules and mechanisms.
LIBERALISM
In this model, sovereignty belongs to an elite: a few hundred oligarchs who own as many financial conglomerates, known as “markets.”
This small minority acts in their own interests and those of their employees. They also, to a limited extent, serve the interests of the population. Most of these individuals remain unknown, hiding behind figureheads from legal and financial firms, with their holding companies concealed in tax havens. They are the ones who drive political and economic decisions.
This is the model of the Anglo-American Western world and its satellite colonies scattered across the globe, governed by financial hubs and free ports such as the City of London, Channel Islands, Virgin Islands, Singapore, Macau, Delaware, the Port of Trieste, and others.
STATISM
In this model, sovereignty also belongs to an elite: a few hundred oligarchs who act as bureaucrats managing financial conglomerates under the control of “the party.” These bureaucrats are figureheads for the true owners, who remain hidden in the shadows.
This small minority acts in their own interests and those of their employees. They also, to a limited extent, serve the interests of the population, although both party bureaucrats and members of the wealthiest dynasties form a privileged caste, often above the law. They are the ones who drive political and economic decisions.
This model is characteristic of China and its former satellite territories, beginning with financial hubs/free zones like Hong Kong. This system is believed to have been shaped by a well-known European dynasty, active in the East since the 19th century with the East India Company and its opium trade policies. After the “Let’s go West” movement of the 20th century, we are now in the era of “Let’s go East.”
Historically, this was also the development model of the Axis powers in the 1920s, ’30s, and until the end of World War II, particularly in Italy, Germany, and Japan, where many banks and businesses were nationalized.
THE THIRD WAY or the Entrepreneurial State
In this model, sovereignty belongs to the public authority, which follows a Government Program to act in the population’s interest on behalf of the “Nation.”
Here, ownership of large strategic companies that determine the country’s economic and social policies lies with public entities holding a golden share—around 30%—while the remaining shares are owned by citizens and employees of the companies themselves as small shareholders. There are no financial hubs or free zones.
This model was invented in post-war Italy by Don Dossetti, Aldo Moro, and Giovanni La Pira, leading to the IRI becoming the largest multinational corporation outside the United States. With the “Entrepreneurial State” financing National Champions, Italy in the 1980s became the world’s fourth-largest manufacturing power after the USA, Japan, and Germany, earning a prominent place in the G5,
This system ended in 1992 through judicial intervention and the piecemeal sell-off of IRI at undervalued prices to competing foreign companies. These companies subsequently relocated production abroad and closed factories to prevent any resurgence.
HOW THE LIBERAL DEVELOPMENT MODEL WORKS
The Liberal Development Model is based on an economy where money is created out of thin air by private institutions with the click of a computer. This private currency lacks intrinsic value, as it is not convertible at the Central Bank into an underlying tangible asset, such as gold. For instance, the Italian Lira had intrinsic value as it could be exchanged for gold at the Bank of Italy, and in fact, banknotes bore the inscription “payable to the bearer on demand” (unlike “legal tender,” which merely signifies recognition for tax payments). In the libertarian world, this currency is created out of thin air by private entities with the click of a computer and is lent to sovereign states as debt, meaning with the requirement of paying interest. The oligarchs then use the proceeds from this interest to buy up strategic companies and real estate that the public sector is forced to sell. They achieve this largely unnoticed, as they control the media, cultural institutions, and political parties through direct or indirect funding.
To maintain this secrecy—namely, that money is created out of nothing and lacks any underlying value—a centralized pyramid system has been established in libertarian Western countries. This system is designed through tailored laws to ensure that the population serves it without even realizing it, as described in the New Scientist article.
The pillars of liberalism are:
1. Delegation by state politicians of the prerogative to issue currency to private entities.
2. Privatization of banks and strategic companies.
3. Legalization of tax havens, triangular trade practices, tax asymmetries, and fiscal advantages between states.
4. Elimination of customs barriers and quota systems.
5. Creation and financing of associations and fraternities, both secret and overt, to control high-ranking state officials and key state employees—so-called state mandarins—who form the Deep State: a private state within the State.
All of this, it must be emphasized, is founded on the “secret of secrets”: whoever gains the prerogative to issue currency has infinite resources to pay for men, means, and materials to control any state from within. This leads to what already existed in Roman times: the imperium in imperio, or Deep State—a private decision-making body within public institutions that orchestrates events without the Sovereign People being aware. It operates using the tools of corruption, blackmail, intimidation, and physical violence.
THE FUNCTIONING OF THE STATIST DEVELOPMENT MODEL
The Statist Development Model is based on an economy with public money created out of nothing by state-owned public banks. It lacks intrinsic value, as it is not convertible at the Central Bank into a tangible underlying asset, such as gold or oil. In these countries, the state simply issues money out of nothing—”printing” it in the case of banknotes, or creating it with a computer click in the case of electronic money. This money, created out of thin air, enters the economy by paying the salaries of public administration employees and those working for strategic companies, which, being state-owned, construct factories—on a scale unimaginable in other systems—purchase raw materials, and pay salaries with essentially unlimited money: in practice, production costs are nearly zero. This practice is referred to in the West as “State Aid” or “Dumping”… semantic frauds deliberately spread to obscure the fact that money is created out of nothing. Even if explained, most people struggle to believe it.
Historically, this occurred in the 1920s and 1930s in Germany, Italy, and Japan. Fiat currency issuance continued until two goals were achieved: price stability (inflation between 2% and 10%) and full employment. The nations that achieved these goals were bombed and leveled during World War II, and nationalization disappeared from discourse.
THE FUNCTIONING OF THE THIRD WAY DEVELOPMENT MODEL
The Third Way Development Model, led by the Entrepreneurial State, is based on an economy with a mixed public-private monetary system. This involves banks, strategic companies, and public utility companies with a public “golden share.” This means that the state—or a public entity such as a region, province, or municipality—holds the largest single share, giving public stakeholders relative majority voting power in assemblies to set industrial policy guidelines for collective benefit.
In this system, politicians represent the citizens while also managing large companies and, therefore, economic levers. They hold the executive power to enact social policies.
In all three models, money is fiat, created out of nothing with a computer click. Today, 97% of circulating money is electronic, created either by the banking system when loans are issued or by central banks during “quantitative easing,” which involves issuing money for non-repayable investments.
This shift occurred because money no longer has intrinsic value. Its value is derived from the convention of being “legal tender,” meaning it is recognized by the state as valid for tax payments. Consequently, the population uses and accepts it as valuable by convention.
It follows that whoever holds the privilege of issuance effectively holds sovereignty, as they can influence all government decisions by steering political, judicial, and media power.