Drowning in Gold

Drowning in Gold

Andre Willers

26 Sep 2014

Synopsis:

The imbalance between Wealth and Money caused by a huge pulse of either wealth or money travels down the timeline in a self-propagating fashion . If it does not dampen out , catastrophe or unending misery ensues .

 

Discussion :

1.The easiest way to see it is to look at historical examples:

1.1Spanish Gold in the 16^th century .

The pulse of money from the American gold and silver destroyed Spain’s industry , embroiled it in endless wars and caused major famines as peasants stopped farming .

The pulse of money destroyed wealth as everybody become too hoity-toity to work . This in turn stimulated money creation through war , looting ,theft , currency devaluation , debt . This ended badly in this case in the catastrophic Thirty Years war . The sack of Magdeburg was typical.

  

1.2 Industrial Revolution in England circa mid 19^th century . A pulse of wealth creation by machine productivity outstripped gold-based currency . This caused deflation and a marked reduction in money , as risk-free returns could be made simply by hiding your cash and waiting while it appreciates due to deflation . Continual means were employed to simulate the appearance of currency .  Favourites still used are velocity of money and war . This ended catastrophically in WW I .

 

2.Then they discovered the joys of Keynes . Just print more money .

See   http://andreswhy.blogspot.com/2010/05/financial-crisis-14-may-2010.html

3. But this went too far and created a pulse of money with Quantitive Easing . This is the situation today . Everybody in developed countries is in a service industry , and real production outsourced. The “Gold” here was the wealth produced by computers .

The same as what happened to the Spanish . Drowned in gold .

And the equivalent of the Thirty Years war storming down on us , complete with religious intolerant cruelties and mercenary forces . Once the payment for “contractors” breaks down , a Magdeburg becomes inevitable .

Nearly the same territory too , note .

They will turn it into a wasteland of drones and smart bullets loitering , while calling it economic progress .

4.Is there an out ?

Yes .

A large portion of humans can become smarter .

See http://andreswhy.blogspot.com/2014/09/prodigies-update-i.html

This will result in either moderation or extinction .

 

Golden distinction cloaks extinction

 

Andre

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