No one seems to be wondering what occurs must the real world no longer react to the Perpetual Motion Financing Machine.
Scrape away the hand-wringing about rate of interest and we find a bedrock of complacency. Nobody seems to doubt that the status quo can grind on for another thirty years doing the same stuff it’s provided for the previous thirty years.
Japan’s Perpetual Motion Finance Machine can obviously run for another 300 years without a hitch. Here’s how the Continuous Motion Financing Maker works: the government spends substantial sums it doesn’t have by selling bonds to the reserve bank, which creates the cash to buy the bonds out of thin air. Perpetual Movement– perfect!
Japan’s tremendous success with its Continuous Motion Financing Device deals other federal governments a rock-solid template for long-term financing of all the goodies everyone wants and requires. It’s continuous motion, nothing can stop it.
This then drives another guaranteed monetary trick, the Yen Carry Trade: obtain in yen at near-zero rates and after that use the totally free money to buy United States Treasuries yielding 3% or 4%. Free money! This is also presumed to be so ironclad it’s good to go for another thirty years, heck, make it 300 years.
the assumption here is nothing can bring down a system that can produce as much cash as it needs to solve any area of bother and we have the past 30 years of history to prove it.
Nobody appears to believe there are any restraints on the Perpetual Movement Finance Maker or the options being proposed: crypto, gold-backed currencies, and so on. That these options might stop working to resolve the underlying issue– there’s no chance to keep the Waste Is Growth-Landfill Economy running with entirely financial ways– that’s impossible. Finance repairs everything.
Until finance in all its flavors is the problem, not the service. Few appear to contemplate the possibility that the whole freaking shebang of debt and utilize might pave the way and topple over the cliff despite what reforms (gold-backed currencies, etc) and other monetary adjustments are set up.
To put it simply, couple of seem going to amuse the possibility that the system is now beyond the point that a go back to stability is possible. In systems terms, the whole shebang (the international financial system and the international economy it allows) has actually diverted so far out of balance that incremental policy tweaks can no longer bring back balance.
The dominant dynamic will be wild swings within an expanding vortex of instability until the entire shebang unwinds. Then there’s the real world, which– and I understand this is shocking–can actually defeat monetary tricks.
Think of the scene on the Titanic when the engineer explains to the captain the ship is doomed since too many watertight compartments have actually been compromised by the accident with the iceberg, and the captain reassures him: “No concerns, we have a printing press on board and we’ll print as much cash as we need to repair the ship.” Uh, right.
Yesterday I went to the regional outlet of a significant nationwide grocery chain to pick up a number of sale products. I walked the spacious store however didn’t identify any hand-baskets, so I asked a clerk, “Did you eliminate the hand-baskets?” She replied, “No, we simply do not have any.”
I send this as the perfect summary of how the entire shebang deciphers. No, we didn’t do without X, we just don’t have any.
To put it simply, we ‘d be going to Heck in a hand-basket other than we run out hand-baskets.
This is not an isolated incident. Here are a few more.
1. Attempted to reach a workplace in the healthcare system. Left 4 respectful messages recently, no action. Called the doctor’s office, the staffer stated that workplace is understaffed. Gee, lucky no one really requires any prompt response.
2. Submitted a type through their “safe and secure online system” concerning my individual retirement account at a major US bank. No response for a number of weeks, so I called the number supplied and was ultimately connected (after numerous minutes of disconcerting music) to a support person who wished to help but did not understand what form I was describing. In other words, every opportunity of interaction is a dead-end.
3. Another call to Corporate America linked to an assistance staffer whose English was so bad I could not construct what she was stating, however beyond that, she plainly had actually not been trained to do the standard functions of her task. So what to do? You understand, naturally: hang up, spin the live roulette wheel and expect a more proficient staffer.
OK, I get it: I’m cursed. The rest of you are getting outstanding service from every business, from the DMV, and so on, and there are stacks of hand-baskets waiting to increase your shopping enjoyment.
Yes, these are all irrelevant developed-world inconveniences. The point isn’t that they’re life-altering, the point is that these systems utilized to work dependably and now they do not. This can be written off with different excuses, but what if it’s evidence that the real-world systems we rely on are all sliding toward the cliff edge of systemic dysfunction or breakdown?
One more anecdote. The man ahead of me in the grocery store line ponied up $255 for a couple bags of groceries and another $22 for some Coors beer. He didn’t look like his family was generating $250,000 a year, and yet he didn’t appear bothered by dropping almost $300 for a couple bags of groceries and a few beers. He was clearly price insensitive, i.e. we do not need no stinking discount rates, we pay complete pop for whatever we want.
Personally, I would be having a heart attack if all I got for $277 was a couple bags of groceries and a couple of beers. However once again, I think I’m cursed with frugality and no one else even cares how much things cost now. A $60,000 pickup? No issue, provide me two!
No one appears to be wondering what happens must the real world no longer respond to the Perpetual Motion Finance Maker. Meanwhile, I’m cursed with the suspicion that the printing press on board the Titanic isn’t going to keep the entire shebang glued together as long as everyone else appears to believe, and that replacing brand-new financial gimmicks won’t restore the system, either.
The way of life you ordered is out of stock and we have no concept when the back-order will be filled. But no worries, we have actually got thirty years of history to prove that all we require to do to take pleasure in 30 more years of Waste Is Development is play around with numerous versions of “money,” debt, speculative bubbles and phantom capital.
However truly, everything’s FINE (Fragile, Insecure, Ridiculous, Expensive) and it’s all rock-solid for another thirty years. But hey, why be so darned careful, make that 300 years, we have actually got Continuous Motion.
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