Dr Morgan's blog is about a truism and of course people are apt to agree with him!
But the really bizarre world view underpinning his work is the notion that "wealth" is in anyway connected to fiat currency, or for that matter gold, when the planet' biosphere is on the point of collapse.
The moment Nixon closed the gold window in 1971 absolutely set in stone the imminent collapse of the world's fiat currency system we are all about to experience.
I met a young chap on a train just before Christmas who had a degree in Economics. I mentioned 15/8/1971 to him and his response was that that was the day meaning left the world. The people who put the medical emergency in place would have started to plan it back in 1971 as they knew some sort of device would be needed to help manage the chaos that is coming our way.
Each of us may foresee some things, right and wrong, and not foresee other things. The message from Surplus Energy Economics is that one might more readily foresee the forced decay of physical economy as oil and other mineral resources become more expensive to bring up to the surface and use, reducing what is left to run industrial economy. Peak steel is an important point, and concrete would be that way, too. Copper is often followed for the same reason of tracking overall economic activity in the near-term.
By “device” I gather you mean the Non-Public Degrowth Agenda.
Going off gold to fiat was not a bad decision. It was the right and rational decision from the prevailing maximum power principle, and anyone who believes in civilization must also believe in the maximum power principle if one wants to maintain an internal logic for his civilizational belief, because the MPP is all there is.
The dollar when off gold for two coincidental and seemingly contradictory reasons (but not actually so). The first we all know: US peak conventional oil hit the year before. The second is that global oil production has reached the tipping point where gold has become a structurally inadequate form of collateral for industrial civilization: there was not enough of it such that continuing to use it as collateral for money would either result in a catastrophic market dislocation in the price of gold (permanent high inflation leading to hyperinflation), or result in deflationary depression due each ounce of the ever-increasingly-scarce gold (relative to barrels of oil) becoming worth relatively more and more, crashing the price of oil and everything else.
Realize that when you do the math on gold and oil today, the gold supply is capable of purchasing about 18bmonths of global oil consumption AND NOTHING ELSE. Conversely, if gold was still the peg, it would have to be worth something like $700,000 an ounce.
As I've said many times, gold is an agrarian money, not an industrial money. Money is just a proxy for energy surpluses, and therefore in a mature, industrial civilization with oil as the master resource, money can ONLY be pegged to that master resource, hence the petrodollar.
The Elites don't make fundamental mistakes. If they did, we wouldn't be here.
Dr Morgan's blog is about a truism and of course people are apt to agree with him!
But the really bizarre world view underpinning his work is the notion that "wealth" is in anyway connected to fiat currency, or for that matter gold, when the planet' biosphere is on the point of collapse.
He really seems to get the difference between wealth and money, but keeps presenting it gently with each post, as to a first time reader.
Unforseen?
The moment Nixon closed the gold window in 1971 absolutely set in stone the imminent collapse of the world's fiat currency system we are all about to experience.
I met a young chap on a train just before Christmas who had a degree in Economics. I mentioned 15/8/1971 to him and his response was that that was the day meaning left the world. The people who put the medical emergency in place would have started to plan it back in 1971 as they knew some sort of device would be needed to help manage the chaos that is coming our way.
Each of us may foresee some things, right and wrong, and not foresee other things. The message from Surplus Energy Economics is that one might more readily foresee the forced decay of physical economy as oil and other mineral resources become more expensive to bring up to the surface and use, reducing what is left to run industrial economy. Peak steel is an important point, and concrete would be that way, too. Copper is often followed for the same reason of tracking overall economic activity in the near-term.
By “device” I gather you mean the Non-Public Degrowth Agenda.
Going off gold to fiat was not a bad decision. It was the right and rational decision from the prevailing maximum power principle, and anyone who believes in civilization must also believe in the maximum power principle if one wants to maintain an internal logic for his civilizational belief, because the MPP is all there is.
The dollar when off gold for two coincidental and seemingly contradictory reasons (but not actually so). The first we all know: US peak conventional oil hit the year before. The second is that global oil production has reached the tipping point where gold has become a structurally inadequate form of collateral for industrial civilization: there was not enough of it such that continuing to use it as collateral for money would either result in a catastrophic market dislocation in the price of gold (permanent high inflation leading to hyperinflation), or result in deflationary depression due each ounce of the ever-increasingly-scarce gold (relative to barrels of oil) becoming worth relatively more and more, crashing the price of oil and everything else.
Realize that when you do the math on gold and oil today, the gold supply is capable of purchasing about 18bmonths of global oil consumption AND NOTHING ELSE. Conversely, if gold was still the peg, it would have to be worth something like $700,000 an ounce.
As I've said many times, gold is an agrarian money, not an industrial money. Money is just a proxy for energy surpluses, and therefore in a mature, industrial civilization with oil as the master resource, money can ONLY be pegged to that master resource, hence the petrodollar.
The Elites don't make fundamental mistakes. If they did, we wouldn't be here.
Where'd all those comments go from the last thread? Little Franny doing her damage control act again?