Tuesday, August 23, 2016
Tuesday, August 16, 2016
Monday, August 15, 2016
Thursday, August 11, 2016
It wasn't so long ago that ignorant, indolent populations sought charismatic puppet leaders and a trite, nostalgic form of conservatism to take care of all that real life stuff for them so they could enjoy their facile entertainments and false financial security. It resulted in the war to end all wars, then another war. It seems us humans forget our lessons rapidly and need to learn them again, then again.
Lest we forget.
Monday, August 8, 2016
Sunday, August 7, 2016
Capitalism works by paying labour less than the sales price of the goods and services they produce, that way there is a profit. Because labour is paid less than the price of goods and services some of the goods and services must be sold abroad, the goods and services are worth more than the population earns. To make the goods and services of a nation easier to sell each nation tries to reduce the value of its currency.
We are now at the point where every nation is struggling to push its currency down, a race to the bottom. The only tool available to reduce the value of a currency is setting a false interest rate. Eventually interest rates will be low enough that capital won't be highly valued, money will be borrowed at such a low rate that we'll all effectively be capitalists. If everyone can do it, what's the fun in being a capitalist?
We may be witnessing the end of capitalism as we know it. If goods and services have to be exported to continue growing profits there must be a finite point when this is no longer possible, when interest rates are all set at zero all around the world.
I don't know what comes next, but capitalism is just about done, and not one of our governments knows what comes next either. Interesting times.