Saturday, March 9, 2013

Was Rich

Was Rich

Beware of formerly rich countries, communities becoming poor again, this is happening in Spain, Italy and other places, they will fight back, they will delude themselves, they will do everything they can to make believe that it is not happening, that a "solution" can be found, that "growth" can restart again: well there is no solution, no one and nothing is in charge, it is all left to its own devices now (in a sense, everything has always been left to its own devices always), it will evolve completely independent of what anyone thinks, any governments do or laws or anything, any debates, any information and trying to figure it our and so on, you can't think away the problems, you can't debate them away or throw ever more debates, theories, ideas, politics, or information at problems, they simply can't be solved because they don't depend on any controlling causes, any linearities, they are intractable problems, like all of economy, no one is in charge, no one and no politics, idea or concepts can change anything, these things simply play out by themselves, no matter how much you try to fool yourself. And the distance between all the the talk and theories and "trying to figure it out" and reality is ever larger. And these people will get angry, violent, frustrated, all kinds of bad things, will do all kinds of irrational things, but will probably simply make things even worse. They will try to hang on to their former wealth without ever doing what should be done:

1) crash all real estate prices radically (3 bedroom home in the center of Madrid or Rome or London should cost no more than 50,000 dollars), huge deflation of all prices - salaries and goods (salaries at 700 dollars a month) - and bring forth cheap rents and build homes by the millions so there is no longer any excuse for high home values and prices;

2) huge public private projects, governments hiring millions (even to do nothing but to give a salary);

3) huge infrastructure projects, rockets, skyscrapers, whatever.

Will this ever happen ? No. the developed economies all have the "invisible hand" religion, they all want things to play out by themselves, there is no strong central government and so forth that can impose all of this. They are all doing the exact opposite, firing public workers, trying to save money and such. And waiting for the startups, innovation myth to hire millions: good luck with that.

But why can they do this when a major war breaks out ? why can they concentrate all of their power and wealth for wars and fighting but not for evolving normal societies to trying to be better off ? only fights justify large government expenditures, but poverty is not a war...

Like the greens that didn't want Nuclear Power: well guess what, now the dominant energy form is carbon, that is dirty, polluting and creates a load of CO2, but for a religious - dogma - ideological idea that Nuclear is the devil they just made things a lot worse for global warming: nuclear is the cleanest and most advanced and best energy, but the greens think that it is the devil, go figure.

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