There has to be a third way and it usually leads to hundred years wars and
provincial minds and chauvinistic stories.   Think of the meaning of the
word "Catholic."    Two Thousand years of harassment and abuse leading to an
orgasm of death in gas chambers and stealing people's gold teeth.   Gold
again. 

 

REH

 

From: [email protected]
[mailto:[email protected]] On Behalf Of Arthur Cordell
Sent: Friday, August 17, 2012 10:17 AM
To: 'Keith Hudson'; 'RE-DESIGNING WORK, INCOME DISTRIBUTION, EDUCATION'
Subject: Re: [Futurework] Arthur's 4th belief

 

One more thing.  Agree that Western economies will be slowing down.  Some
call it a long term depression.  Others call it an evolution to a stable
state economy.  We should be thinking about how to make the transition to a
stable state economy.  Will be difficult and involve cultural shifts but the
alternative, a long term depression, seems more problematic.

 

arthur

 

From: [email protected]
[mailto:[email protected]] On Behalf Of Keith Hudson
Sent: Thursday, August 16, 2012 8:10 PM
To: RE-DESIGNING WORK, INCOME DISTRIBUTION, EDUCATION
Subject: [Futurework] Arthur's 4th belief

 

At 21:17 15/08/2012, Arthur wrote:

        4. That effective demand has to be maintained if we are to avoid an
economic meltdown.


Effective demand can't be maintained if there are no uniquely new consumer
goods in sight -- as obtained all through the industrial revolution until
about the 1980/90s. Since then we have had nothing really new, only
amalgamations of existing products (e.g. smartphones), fashion changes and
marginal improvements. It was only then that a whole new tranche of credit
money (derivatives) had to be launched in order to keep the economic machine
going. Until the 1980/90s, derivatives were straightforward insurance
schemes whose notional cover matched that of world GDP on a 1:1 basis. Since
then, complex derivatives rose to 10 times world GDP, such was the desperate
need of the investment banks for consumers (and governments) to keep on
spending.

So what is the future. It can only be a great simmering down of Western
economies into long-term depression or, if the US Fed and the ECB persist in
money-printing, hyperinflation.

Keith



Keith Hudson, Saltford, England http://allisstatus.wordpress.com
<http://allisstatus.wordpress.com/> 
  

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