This is an excellent article and analysis. The driving motivation behind the accelerated rush to a Techno Fascist Feudalism has been occupying my mind for the years leading up to the Repo Spike in New York in September 2019.
In the Financialised economy and with the CBDC push tied to DIgital Id’s, we see a symptom of the appearance of what the system is trying to preserve, namely itself and its Monopoly ingroup. The real Economy is put in the position of trying to make bricks without straw, a misallocation of resources, and the Credit tokens to acquire those resources.
The Dominant Resource tieing the Financial system’s real potentials to the Real potentials of the real economy is the Flow of Energy resources and Primary resources through the economy. It would seem that a Hard limit on available energy to sustain the present industrial output of the global economy has been hit, what seems inexplicable is the Priorities touted in narratives regarding Why our largest Energy Sources the Hydro Carbons, Gas, Oil and Coal, and the largest potential replacement for them Nuclear are being demonised?
Welcome to Peak Prometheus.
The PetroDollar Standard, with Saudi oil production being a swing producer to facilitate inflation of the currency. In January 2005, Saudi Arabia increased its operating rig count by 144%, to increase oil production by only 6.5%. This suggests that the market swing producer (as Saudi Arabia was seen) was not able to increase production enough to meet increasing demand.
Plateau Oil. A variation on the idea of peak oil. AT Plateaux production no swing capacity in Oil Supply is similar to demonetizing Silver giving a defacto PetroDollar Standard which is inherently deflationary.
Heathrow Runway 3, Swansea Tidal Lagoon and Hinkley point all point to a complete failure of Policy Making informed by proper economic analysis. Given Energy Restraints as opposed to Financial outcomes for our decision-making criteria which of the three would be progressing indeed are any of the three Mutually Exclusive in resource terms?
As well as this idea of, are we resource restrained? as opposed to, are we Finance restrained? I am still slightly confused with Seeds and its approach to Debt, Money and the distinction between Productive Investment and Consumption Spending.
To get from GDP to prosperity, then, two stages are involved. The first is to arrive at a ‘clean’ GDP number by removing the distortions introduced by pouring cheap credit into consumption. The second is to deduct ECoE from this underlying number.
The results show a deterioration in prosperity across all major Western economies other than Germany. Typically, Western citizens are getting poorer at rates of between 0.5% and 1% annually.
Moreover, the share of debt – personal, business and government – that these citizens are required to support on the back of dwindling prosperity has grown markedly. Because servicing this debt at normal (above-inflation) interest rates has become impossible, we are locked into monetary policies which are themselves destructive.”
In the first part of the article, you refer to “The Seeds ECOE Algorithm” and maybe it is in that where my difficulties, following the reasoning lay?
Another unresolved question is How big is the Final Real Output Pie and which proportion is Hoarded as Financial Wealth by “The elite” “Oligarchs” “The Ruling Class” “The Winners”, call them what you will. Are the people at the top deluding themselves into thinking that they are better off now than in 2007/8, we all know at whose expense this has been if they are better off either In Real terms or Relative terms to the Losers, i.e, real falling wages and the distribution of Wealth ( Oxfam publish that every year). Income distribution and Wealth distribution and Who are net payers of Interest are all intrinsic allocators of the Pie whether it is getting smaller or whether it is getting bigger, With positive Interest rates, it is mathematically certain that all Wealth migrates to the Very top leaving debt distributed with the Losers.
As part of a SEEDS stocktaking of the Energy Wealth and Energy Potential of the Total Economy where there are resource restraints on providing an Optimal Energy Output ( This will be electro Magnetic in nature ) Electro Magnetism is present in all matter inert and organic and whilst we might run out of Crude oil and other natural stores of Hydro Carbons, we are only really in any trouble when we run out of electrons.
The idea of our discretionary energy spending comes through in the article and I wonder if this is where we can really nail where our Energy Investment Challenges have been Failed.
The Analysis in the article Gives us a Gross Energy and a Net Energy available for total use. I suspect that the Available energy will be dynamic and has always been so and perhaps always will be and therein lies the question.
“Within the dynamic range of Net available energy for Use we meet political economy”. Discuss?
John Day on January 12, 2022 at 1:42 pm
Alastair Crooke The Double Helix of Entwined Pandemic and Economic Strategy (Or how most of us are now problematic for the global economy. Spend cash.) great article and those it links to.
Ron on January 12, 2022 at 9:52 am
I think the BlogMire sums it up pretty well –