Japan Is Dying And We Still Don’t Get It?!
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Dorothea Lange Miserable poverty, Hooverville, Elm Grove, Oklahoma County, OK Aug 1936 What is it with us? Don’t we WANT to understand? Japan announce
[See the full post at: Japan Is Dying And We Still Don’t Get It?!]Hah, the share markets don’t care. Good news is good news. No news is good news. Bad news is good news. German recession (effectively), Japanese recession, it’s all good. Welcome to the new reality, folks!
“Abenomics is a depressing failure, just as we knew it would be since it started almost two years ago.”
As you say Ilargi, despite its obvious failure Shinzo Abe want’s to implement an even bigger re-run of his failed policy, so perhaps someone should appraise him of Einstein’s words:
“The definition of insanity is doing the same thing over and over again and expecting different results.”
To date Angela Merkel has successfully resisted Mario Draghi’s wish to introduce a full blown European version of Abenomics, despite the fact the US has just ended their own version, which has had debatable benefit, if any, for the real US economy. Its unfortunate that mainstream economists, Central bankers and politicians don’t understand (or probably don’t even know about) the work of Sir Frederick Soddy. He clearly understood the distinction between money and wealth, with the former theoretically limitless and not subject to any physical laws, and the latter limited because we live on a finite planet, and subject to the laws of thermodynamics, in particular the 2nd law. It’s the failure by policy makers to recognise this fundamental distinction between (fiat) money or credit or debt – take your pick, and wealth created by the “real” economy that has to utilise the earths resources to create this wealth that’s at the root of the failure to restart strong economic growth. This is why current policies are doomed to fail, because as foretold by Meadows et al, “Limits to Growth” are starting to restrict the economic growth needed to pay down these debts created by massive over-expansion of credit by central banks, ultimately to detriment of future generations. Personally, I believe because these debts will never be paid off in a static/contracting economy, debt forgiveness will eventually become the de facto order of the (future) day, however I’d be interest to hear your thoughts on this possibility Ilargi.
Entropy and Empire:
“It takes energy to circulate the water that dissipates degraded energy. The bigger a tree gets, the more energy it can harness from sunlight but also the more degraded energy it has to get rid of. Life is a balancing act. You want lots of energy but not so much that it can’t all be exported once it’s degraded. Not just the bowels of an animal but any living system can get constipated, clogged with the waste energy accruing from prior activity. This is why all successful species limit their growth and intake of energy.”
That last sentence – “all successful species limit their growth and intake of energy” – is something our world leaders are ignoring.
Good article by Ted Dace, thanks for posting the link Raleigh. Not sure if you’ve also read the article with the same name, posted on the former Oil Drum website in 2007 by Nicole Foss.
https://canada.theoildrum.com/node/2381
Also, Nicholas Georgescu-Roegen’s book “The Entropy Law and the Economic Process” is worth reading, and I like his use of the Entropy hour glass described in “Beyond Growth”, p. 29, 1996, by Herman Daly (the hour glass diagram can be opened via the embedded link) in the extract of the book entitled Entropy and Economics, link below.
Debt Forgiveness? A Jubilee? Well, that has already happened with the Fed’s Wall Street Bailout.
Why not Free Money for the small fry, you ask? Just wait a bit longer. It’s coming.
It’s already starting here; https://www.zerohedge.com/news/2014-11-18/60-households-get-more-benefits-they-pay-taxes
Soon, Central Banks will issue Gift Cards and Credits along with Prepaid Charge Cards, if that’s what it takes to get devaluation going. “Whatever it Takes!”
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