Amorphos wrote:Just want to run an idea past you...
Infinite banking, the ultimate socialism
As in a decade or so nothing will have value apart from the electricity and 'feed' a 3D printer uses, and power itself may become ‘free’, essentially the cardinality will be stripped out of the whole thing.
By infinite i mean ‘unlimited’ not a denumerable or otherwise very big amount ~ that’s still finite.
You mean infinite debt: debt does not ever have to be paid back, you just pay back debt with new debt, you pay back the old debt by making new debts and so on forever since in reality it will never have to be paid back. Actually what you really need is constant cash flow, cash coming in and going out, the more the better, the more confusing the better (the more intractable the better and then you can play all kinds of accounting games on the numbers and make up all kinds of things, actually the goal is to completely lose track of money, how much it is whether you are in profit or loss, the more mixed up and confusing the better and so on, the financial markets, the paper economy, the make believe economy and such) : just like the "huge" JAPANESE debts or Italian debts, they have all of these debts and yet their economies chug along fine for decades on end, they always find someone who will always buy their debts no matter what. So it will never really have to be paid back, it just gets rolled over forever. And especially these debts are so intractable along with the 10 trillion dollars of US debt, no one knows where it is, what is going on and so forth.
And also notice how small chunks of these debts of varying time spans (10 year notes, 2 year bonds and so forth) are being constantly sold, all having different interest rates, so when one debt expires new ones have been made to pay them off and so forth.
The game is perfect, perfectly rigged, will work forever, this is why JHK ( http://kunstler.com/blog/2013/04/aftershocks.html ) has always been 100 % wrong on the financial and bank economy: it will go on forever, no matter what, it is a perfect machine and you can make debts forever, no amount of money is the limit since it will never really have to be paid back. This is the little dirty secret of all of the financial crap.
The reason why governments and economies can make debts forever is because the Technological Economy generates huge amounts of free wealth automatically (along with huge profits, ask Apple or Exxon etc.) , wealth and production is no longer tied into labor or work anymore, wealth today is created through huge economies of scale, large scale networks, transportation, energy networks (and energy will never run out, we have a glut of energy and solar energy is an infinite source of energy, etc.), information, automation, computers, software, mechanized argiculture, technologies and so forth.
And the world is awash with cash, there is 100 trillion dollars in banks just sitting there and not knowing what to do, you will always find money that will buy any debts no matter what.
Every now and then they have to make believe that "debts" is real and serious so they choose a little irrelevant and weak country, just like bullies and decide to punish them: Greece and Cirpo for example, little weaklings that you can beat up in the name of a false moralistic imaginary model of an economy that doesn't exist and is just made up.