Well, a fiat money system doesn't require that, although there's not law saying it cant have it either. In other words, just having a fiat money system doesn't mean we have to have continued growth to service debt, in fact we don't require debt in a fiat money system, not that we can't choose to have debt. We also don't need continued growth to service debts since we can just default and those who we borrowed from will take what we borrowed against. This naturally is risky for both parties. Sure, a lender can make ~$100k over thirty years on a thirty year loan, but they can also loose ~$50k if the property looses half of it's value and the borrower defaults quickly. That said, whether or not the bank makes money or loses it does not depend on continued economic growth in the general sense, it only depends on whether or not the borrower can realistically be expected to pay off the loan plus interest and how the value of the property behaves. Even giving people working in fast food a variable rate loan on a $400k house doesn't mean the lender believes in continued growth, they can easily be dumb and/or crooked.Armageddon wrote:If you have a fiat monetary system, you have to have continued growth to service the debt.
Nope. To have continued growth, we need more energy and/or greater energy efficiency. That isn't to say that we can increase energy efficiency and growth forever, just that we can see more growth w/ the same energy resources. That metric is referred to as energy intensity.Armageddon wrote:To have continued growth , you need more energy , ie: more homes, malls, stores etc. This is why you can't grow your economy without growing your energy supply. It's quite simple.
Professor Membrane wrote: Not now son, I'm making ... TOAST!
seldom_seen wrote:This is one of those subjects that isn't worth debating. If you can't see, or won't to take the time to understand the links between energy and the economy you probably never will.
Yay! It's been a while since I've seen an appeal to authority.seldom_seen wrote:This is one of those subjects that isn't worth debating. If you can't see, or won't to take the time to understand the links between energy and the economy you probably never will.
Professor Membrane wrote: Not now son, I'm making ... TOAST!
yesplease wrote:Is that what you kids call recessions these days?SpringCreekFarm wrote:I say the econolypse was caused by many factors and one of them was the high price of energy.
So it's not your choice to "follow along" or use a more, conventional term? Is that what you smartass kids call responsibility these days?SpringCreekFarm wrote:I'm just following along with the wording of the title of the post, smartass.yesplease wrote:Is that what you kids call recessions these days?SpringCreekFarm wrote:I say the econolypse was caused by many factors and one of them was the high price of energy.
Professor Membrane wrote: Not now son, I'm making ... TOAST!
JohnDenver wrote:SpringCreekFarm wrote:I say the econolypse was caused by many factors and one of them was the high price of energy.
You're not following the chain of causes deep enough. Why was the price of energy high? Due to an orgy of rapid growth caused by loose credit, easy money, massive leverage and other financial factors. The energy was being used not for sustainable growth, but rather to build massive overcapacity -- too many factories, homes, cars, mines etc. High energy prices were just the final *symptom* of an out-of-control, overheated credit bubble.
yesplease wrote:Yay! It's been a while since I've seen an appeal to authority.
Professor Membrane wrote: Not now son, I'm making ... TOAST!
Professor Membrane wrote: Not now son, I'm making ... TOAST!
How do imploding property values in innercity Cleveland slums bring down the world economy?
Cleveland may loom large on the balance sheets of financial institutions and equities
worldwide (see pages 7-9), through the wonders of leverage and securitization.
But global GDP is a whole other ball game. Is Cleveland, and all the other depressed
property markets in the US, really big enough to deep-six a $60 trillion world economy?
And how do falling property values in Cleveland create a recession in Japan, and
the Euroland economies, before they even create a recession in the US economy. And if
Cleveland and its ilk are really the epicentre of all the world economies’ ills, why is the
rest of the world buying greenbacks?
Over the past expansion, real oil prices rose over 500%, twice the
climb in real oil prices that produced the two biggest recessions in the post-war era:
the 1974 recession and the double-dip recession in 1980 and 1982. If oil shocks half
the size of the recent one caused the worst recessions in the last fifty years, they’re a
pretty obvious explanation for the recessions in oil-dependent Japan and Euroland earlier in the year. And even back in Cleveland, few could doubt the link between $4/gallon gasoline last Memorial Day weekend and what’s happening in Detroit today. And from where the US economy currently stands, vehicle sales have a much bigger downside than housing starts.
ReverseEngineer wrote: The Die Off has begun
Ludi wrote:ReverseEngineer wrote: The Die Off has begun
Got evidence the world population is shrinking?
ReverseEngineer wrote:Absolutely. The economy is shrinking. The economy represents the sum of all the people on earth. Economy shrinks, population shrinks.
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