In the discussion thread: So you're visiting a college campus. What would you ask? [View all]
Response to mbperrin (Reply #27)
Mon Jan 28, 2013, 11:58 PM
NoOneMan (4,795 posts)
29. "Your debt definition is simply nonsense."
No, its actually exactly what "debt" is in the rawest form. You consume energy working, you are given a token of debt, ensuring that society will adequately consume energy to produce a reciprocal product for you as a reward. You will not work for debt if you cannot be sure your consumption of energy is reciprocated. The willingness to reciprocate the consumption of energy must explicitly exist to initially encourage someone to do useful work (and consume energy). Otherwise, we are all working for free, or for an a simple hope that our work will maybe be reciprocated (not very motivating).
Here: you borrow money to build a house. The house is built, in fact, millions of houses are built. Then, all the debtors simply refuse to pay. Houses are still there, and they will be distributed to somebody at a huge discount after they are repossessed.
Sure, and now you have created a situation where further homes may not be built or financed because there is uncertainty the debt will ever be repaid. Then money is sapped from the economy from such uncertainty and the velocity of energy dips (leading to deficient demand and recessions). So now the central government has to step in, borrow their own money, and inject it to "fix" the problem...does that sound familiar?
So this becomes even more important in terms of ensuring you have a respectable currency to purchase the energy needed to do useful work in the first place (or it costs more and more to 'work' and increase the GDP, thereby lowering profits and incentive to invest). No one is going to accept a currency that may mean next to nothing tomorrow for energy, or products created by consuming energy. Unfortunately, the US has been paying a premium on the plurality of its oil since its fiscal policies led it off a cliff, leading to expensive work and an eventual reckoning:
And your action call will not happen because people are not going to consume less energy - instead, generate energy with no emissions - wind and solar.
What people are going to do is purchase new shiny products and export coal to China (and exports are surging) until we are all dead. Sounds like one hell of a plan.
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"Your debt definition is simply nonsense."
|Still Sensible||Jan 2013||#7|
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