Posts Tagged ‘infinity

17
Apr
20

Money as a construct

 

1. Money doesn’t actually exist
2. Government issue bonds for sale base on a promise to buy these back at a given amount on a given date.
3. Government gets money for bonds and spends it to create revenue
4. The promise to pay is then called government debt
5. Governments can issue more bonds to cover this debt or they can use revenue.
6. Issuing bonds to cover existing debt increases debt
7. The largest buyers of bonds are banks which are allowed to operate on a fractional reserve system.
8. Fractional reserve means that for every dollar they spend on bonds they can issue 10 times (or another multiplier) that amount in currency and charge interest on the loan.

quick summary:
Year 1. government sells $1 to a bank with the promise to pay $2 in 2 years time, government debt is then $2 dollars. Bank can then lend $20 to you today.

year 3. Government doesn’t have $2, sells $4 to bank with promise to pay $8 in two years. Government debt is now $8 and bank can lend you $160.

year 5. Government doesn’t have $8, sells $16 to bank with promise to pay $32 in two years time. Government debt is now $32 and bank can lend you $640.

(Did anyone catch the rice chessboard thing about expontial growth?)

obviously this doesn’t quite work exponentially but the growth coefficient means that debt will increase over time as will the ability of the banks to leverage and sell you debt.

Some companies such as hedge funds releverage this debt – financial crisis in 2008 where a single dollar was sometimes leveraged up to 1000 times.

of course the whole thing is a house of cards where the only guarantee is the assumption that natural capital (the worlds resources) is infinite and productivity (the labor of the working class) will increase in efficiency over time. Both of which assumptions are false.

the myth is perpetuated because, as you see, it makes the banks very very very rich.

26
Jul
17

Trying

I am trying to consume as
speedily as possible
I was told that my consumption,
fuels the economy
Which might otherwise run out

I continue to believe
Everything is infinitely fine
Because if I stop
the Economy dies
taking everything else with it

Sustainability becomes a belief
that assuages all fault,
Because, after all,
if you didn’t consume
wouldn’t I?

24
Mar
17

Seven years of fat

Exposing the fossils

of a hundred million years

to combustion

we turn them into an infrastructure

that can only be supported

by an infinite supply

 

without turning our minds

to the concept

of the finite nature

of everything

 

sure

nature may

in one hundred million years more

recreate what it created

one hundre million years afore

but not before

 

60 years until concrete cancer

eats a building

that took 30000 years of energy to create

5 years until the obsolescence

built into an ipad

destroys another 2000 years

 

Should we really be basing our productivity

Our survivability and collective ingenuity

on the ability

to burn fossil fuels

into substitutability