The Forum > Article Comments > The biophysical story behind ‘secular stagnation’ > Comments
The biophysical story behind ‘secular stagnation’ : Comments
By Jonathan Rutherford, published 27/2/2017Most economic analysis blames influences inside the system for decline in growth, but what about influences outside, like the environment?
- Pages:
-
- 1
- 2
- Page 3
-
- All
Before the current debt based money system, the gold backed system we had was far worse. Because the currency values were fixed, trade imbalances weren't self correcting, and speculators were making huge amounts of money at government expense (and in some cases creating a hyperinflation risk). And there was still as much need for debt as there now is, but governments had limited capacity to borrow.
You seem to have overlooked the fact that if productivity increases
and//or if interest rates fall
and/or if inflation occurs,
the capacity of the private sector to borrow increases.
Individual loans will be paid back, but aggregate debt can keep increasing for ever.
__________________________________________________________________________________
Armchair,
Apart from the US Federal Reserve, all the world's central banks are 100% government owned, despite what conspiracy nuts claim.
__________________________________________________________________________________
Bazz,
The reason debt is needed is simpler than that; without it, only the rich would have the means to invest in the equipment they need to improve their own productivity.
__________________________________________________________________________________
Taswegian,
Not only does EROEI not have to exceed any arbitrary figure, but IIRC Weissbach's calculations are way off because he "converted" non energy inputs to energy values.