My first rant is against the world financial system, which has been ruled increasingly by uncontrolled free enterprise since the onset of the industrial revolution.    I consider this system to be a giant Ponzi scheme, doomed to periodic failure, such as the big one we experienced in the 1930’s, all the smaller ones we experience every few decades and the final one (in my opinion)that we being trounced with now.

I don’t see the problem as partisan one, because both sides of the issue are in denial.  I should say all sides, because I have been following the news closely on this issue — Newsweek, New York Times, NPR, CBC and BBC — and I have heard not one word from anyone of any political bent: Democrat, republican, libertarian, tea partier, far left, far right or far out, that did not support the idea that continual growth of our economy is the holy grail.   Of course they don’t agree upon the means to achieve this impossible goal.  Continual growth cannot occur because it violates the laws of thermodynamics.  No system has ever or can ever continue to grow and continue to function — from the tiniest clocks to largest Galaxies.

The reason why I think our current depression will make the one in the ’30’s pale by comparison is that after that last big crash, the World still had apparently(to most at that time) unlimited resources, allowing growth to get restarted and to continue with fits and starts up until last year.  But now we are running out of the oil* that fueled this growth and is integral to the world’s infrastructure. Basically everything in the world either takes oil to make or is itself made out of oil.  Without it there will be no computers, no TVs, no cell phones, no cars, no planes, no roads, no Velcro, none of the fancy medicines we have developed — basically no modern civilization and those of us or our children who are left will be eking out our existence digging in the dirt with sticks in a the very hot and stormy polluted world.  That might sound a little pessimistic, but without oil, you don’t have shovels.  Of course, you could always have a blacksmith forge you a shovel, but then we don’t have blacksmiths.

We, including our grandparents, are all responsible for this mess, but the people who really accelerated the process of bringing the world to its knees were the neocons, spawned by the Regan revolution in the 80’s when we first were all encouraged to get deeper and deeper in debt — live our lives now and pay for it in the future and we are now paying for their short-sighted greed.

Now to my point.  Since oil is so valuable to so many aspects of our life, who else thinks it would be a good idea to stop using the stuff for fuel as much as possible?
Ross

*OK, we are not going to run out of oil next week, but by 2030 if the use of it continues at its current rate, we will need five Saudi Arabia’s to meet our needs.  And the law of supply and demand is about as firm as those of theromdynamics.  When oil gets more scarce the price of everything — remember, oil is essentially everyting — will go up until at some point only the very elite will have such things as computers, or maybe even (gasp!) cell phones.

Next: Twidiots, Texterbating and Social Nitwitting.

Advertisements
Comments
  1. worldtake says:

    The comment below on my Ponzi Scheme blog came to me via email:

    The answer to that question is complicated. Are there aspects of the economy that is built on perceived value and not substance? Absolutely, and this takes on new meaning in the post-gold-standard monetary regime we currently live in. However, even the value of gold was based on a perception, that was not always rooted in the general terms of supply and demand. I tend to describe stressed economies of scale as being more like a slinky than the common description of a bubble, where everything of value is placed on the x-axis of a graph. The collapse of an economic system is a spring effect like a slinky, where everything collapses on the x-axis relative to its value on the previous expansion.

    Where this differentiates from a Ponzi scheme is that there is an actual value to every individual unit in an economic system. The perceived value is often more or less than the actual value, but that does not negate the existence of an actual value. With a Ponzi scheme, however, nothing is of value because the entire system is built on fraud.

    Hope this answers your question. Feel free to respond.

    Cheers,

    James

    And my response to that email:

    Good Points James
    and I agree, they are not exactly the same, but I am not sure if that matters. The Ponzi scheme does offer zero — except for the schemers and some of their friends. There may be value to every unit within the economic system, but if what I have predicted happens — that is due to oil being the basis of everything, with no real replacement for it, possibly the value in the units of our economic system that you refer to, will become so small as to be indistinguishable from the null set offered by the Ponzi scheme. Do I think this will signal the end of humanity? No. Just a minimum of 50 years of serious chaotic adjustment, even more chaotic than the transition from wood to coal or from coal to oil, because with them, we had something to transition to.
    Yes I know the technology gurus think everything will be solved with new advances in science. I used to believe that kind of thing when I was reading popular science as a child in the ’50s. You know, everybody would be flying their personal planes by 1990. Only problem is that everything science has to offer is either made out of oil — most of it is — or it takes oil to make it. The law of supply and demand will not be violated and as oil becomes more scarce and more expensive to get out of the Earth, the price will rise not arithmetically, but exponentially. How much do you think that laptop will cost if oil is say $1000.00 a barrel — Unless you are very wealthy you won’t have a laptop.
    Ross

  2. […] Blogs In “The Big Ponzi Scheme“, I explain why I think the free enterprise system is one giant Ponzi Scheme.  In […]

Please tell me what you Think. I won't know unless you comment.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s