Steve Keen exposes next global economic shockwaves

18 01 2017

Most of DTM’s readers will know this, but as it’s rather well done and amusing to boot, here it is anyway….. some lighthearted relief.

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10 responses

18 01 2017
Rob Mielcarski

Is Steve Keen losing his marbles? In the past he seemed to understand thermodynamics. Now he seems to be saying a free lunch is possible and that it does not matter if paper wealth and real wealth get out of balance. Or did I misunderstand his message here?

19 01 2017
psile

Agreed. Completely bizarre thinking. If a free lunch were possible then why the upheavals of 2016 that brought about Brexit, Trump, the “No” referendum result in Italy, the rising popularity of Marine Le Pen in France, etc, etc?

If money printing ad infinitum was so great, then why has there been no organic growth in the world economy since at least 2008, if not before? My respect for him has been declining for awhile, but now it’s time to delete him from my bookmark list.

19 01 2017
mikestasse

The lack of growth is entirely down to collapsing net energy available to ‘do things’. What has been going on for forty years or more now, is that money has slowly been replacing the missing net energy, and now it’s out of control…..

19 01 2017
rabiddoomsayer

Printing too much money is inflationary and that can be bad. Deflation is bad too. So it is a balancing act, while there are significant deflationary tendencies more money in the system would be a good thing.

19 01 2017
mikestasse

I think (but I’m no expert so not 100% sure) that inflation is only a problem when more money is printed than the growth in the economy is worth, and then, only if it’s printed by private banks, not the government……

19 01 2017
Rob Mielcarski

You are correct that in the short term printing money masks the negative effects of deflation caused by falling net energy. The problem is in the long term.

All printed money assumes an equal amount of real wealth will be created in the future. If for any reason that real wealth is not created, and if the bad debt is not permitted to default, as politicians seeking re-election will be prone to prevent, then the printed money will eventually result in civil society destroying inflation.

Our only choices are do we want to fall from 1) a higher elevation later, or 2) a lower elevation sooner?

20 01 2017
mikestasse

There are zero doubts that our problems are long term..!

We live in very interesting times indeed. Nothing like this has happened before (until the population exploded, limits to growth were nigh impossible) and nobody in charge has the faintest idea of how to deal with this……

19 01 2017
Susmind

He didn’t say there’d be a free lunch for you.
He said, you’d be paying for the free lunch with inflation.
After all TPTB have had a free lunch on asset prices and the price of money from you and me since 2009.
Now they’ll have a free lunch from us on goods & services and we’ll have to give up more of the cake to the rich coz we let them take control.

Except to be paying $10 for an ice cream before too long…

20 01 2017
Arthur Robey

There is plenty of evidence that we are both cleverer and more obdurate than we think.
There is plenty of empirical evidence that safe non-standard nuclear power will become available to us.
We are obdurate in that we refuse to seize the opportunity presented by the empirical evidence and stubbornly repeat the physics models that were developed many years ago.
Has a physics model ever been wrong? And why do you suppose that Your present model is the last word in Physics. Hey! This time we have all the answers.And why? Because You, O august one, happen to exist at this moment? Your Ego betrays you.

However, please be aware that boundless energy is an necessary but not sufficient factor to bring us la Dolce Vita. We need to escape to the infinite boundless Void of Space. (No. I do not consider the surface of a planet to be boundless. I spoke very deliberately of the Void, not the two dimensional surface at the bottom of some gravity well, like say I dunno, Mars for example.

My only hope is that Mr. Darwin will, in the fullness of time, go through the herd like a dose of salts.

20 01 2017
Arthur Robey

Here is ONE example of non standard Nuclear.

“Fusion energy may soon be used in small-scale power stations. This means producing environmentally friendly heating and electricity at a low cost from fuel found in water. Both heating generators and generators for electricity could be developed within a few years, according to research that has primarily been conducted at the University of Gothenburg.”

Read more at: https://phys.org/news/2015-09-small-scale-nuclear-fusion-energy-source.html#jCp

I said ONE damn it. Don’t like it? I have others.

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