Laundry Economics .
Andre Willers
6 Nov 2014
Synopsis :
Taking in each other's washing as an economy . It works near the
Singularity !
Discussion :
1.Comparative Advantage .
http://en.wikipedia.org/wiki/Comparative_advantage See Appendix A for wiki example .
“The data of the following list comes from The
Conference Board[1] and Eurostat.[2] GDP is measured in purchasing power parity, normalised
to 2013 US dollar (comparable to a 2013 international dollar). It is calculated from 2005 EKS PPPestimates from Penn World Tables (PWT 7), updated with GDP deflator changes. Work is measured as hours actually worked
during the year in employee and self-employment jobs.”
This is the value of the currency (ie work produced by the good
citizens per hour) before QE got too bad .
We take just two :
USA 67.32
Japan 43.77
If USA diluted it’s currency by 43.77/67.32 = 0.65 then it would
have parity in Comparitive Advantage .
This means no incentive to trade .
The currency in circulation in 2013 (M2 most relevant) http://en.wikipedia.org/wiki/Money_supply
USA 2.8 Tr . Printing (QE) an extra (2.8/0.65 – 2.8) = 1.5 Tr
dilutes the $US to parity with YJapan .
This was the original intention of Quantitive Easing .
Trade in some comparative advantage for economic growth .
This gives roughly 17 months of QE at 85Bn a month . This what
actually happened .
2.Japanese Response :
They were not too charmed . Essentially , it meant there was no
reason for the US or any Dollar country to trade with them .
They retaliated with two measures :
2.1 Diluting the yen slightly faster than the dollar (I would
have simply done it one dump . Shock and awe .)
So-called Abenomics . To buy time .
2.2 Development of clathrate energy sources .
Something they seem to have done ,
The largest treasure of all has just been unlocked and is
bubbling to the surface .
See
What actually happened and is happening as we speak :
Japan has done another Pearl Harbour .
This time against the major oil producers .
See
The Smoking gun of Clathrate mining .
See also
Theyr'e using tailored archaeobacteria to release methane in a
controlled fashion .
Very cheap . Seed the clathrate bed , then harvest the bubbles
.
A high wastage percent , but it costs nothing .
This is what you are seeing in the
We're just seeing the leakage .
The Japanese Yen is going to laugh last .
This news is already breaking .
3.What about the rest of the world ?
This is simple to describe : they’re waiting for the tumble
dryer in anticipation of youth
Now simply use "money" as the good and we have the
present situation . Capital sloshes around , following the cheapest printing
presses .
Tried and tested .
"... Scilly Islands. The natives of that
group, before Mr. Smith's time, are popularly said to have eked
out a precarious livelihood by taking in each other's washing. "
See
4. What does all this mean ?
Well , it means that if the rate of wealth creation per time
unit is faster than the demand growth , then taking in each other’s laundry
makes perfect sense .
A civilization-ending crash probability has suddenly receded to
the zero regions .
But profound changes are on hand , which might seem as bad as a
crash .
(“What ! An AI wants to marry my daughter in a multiply
progressive fractal marriage ! And which one is my daughter ?” )
A cry of “ Oh my daughter ! Oh my ducats !” Both seems to be transforming into something
rich and strange .
5.Market correction .
Clathrates are going to force a major civilization correction .
Species bifurcations as well .
Like the Philistines , it is upon Samson . And things are going
to get hairy .
“When things get hairy , get a wigmaker . “ Delilah .
You heard her .
6. This is not what I expected .
What shampoo does God use ?
7. In a universe where Mrs Simpson deserts King Edward VIII and
elopes with toyboy Alfred E Neumann , truth becomes a quantum foam 
Things are not as bad as they seem .
They solve each other in incestuous stews in neighbouring
universes .
8.The birthplace of modern economics .
Note the ergonomic design of the doors to facilitate the large
fat behinds of politicians coming in for a quick rinse .
And so it goes .
Andre
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Appendix A
In a famous example, Ricardo considers a world economy consisting
of two countries, Portugaland England, which produce two goods of identical quality. In
Portugal, the a priori more efficient country, it is possible
to produce wine and cloth with less labor
than it would take to produce the same quantities in England. However, the
relative costs of producing those two goods differ between the countries.
|
Hours of work necessary to produce one unit
|
||
|
Country
|
Cloth
|
Wine
|
|
England
|
100
|
120
|
|
Portugal
|
90
|
80
|
In order to produce an additional unit of cloth, England must
commit 100 labor hours, which could have instead produced 
units of wine.
Although Portugal can produce a unit of cloth with fewer hours of work (90
hours) than England, it must forego producing a greater amount of wine (
units) to do
so. Accordingly, England is said to possess a comparative advantage in
cloth even though Portugal possesses an absolute advantage in
cloth. A similar argument would show that Portugal has both an absolute and
comparative advantage in wine.
units of wine.
Although Portugal can produce a unit of cloth with fewer hours of work (90
hours) than England, it must forego producing a greater amount of wine ( units) to do
so. Accordingly, England is said to possess a comparative advantage in
cloth even though Portugal possesses an absolute advantage in
cloth. A similar argument would show that Portugal has both an absolute and
comparative advantage in wine.
In the absence of trade, England requires 220 hours of work to
both produce and consume one unit each of cloth and wine while Portugal
requires 170 hours of work to produce and consume the same quantities. If each
country specializes in the good for which it has a comparative advantage, then
the global production of both goods increases, for England can spend 220 labor
hours to produce 2.2 units of cloth while Portugal can spend 170 hours to
produce 2.125 units of wine. Moreover, if both countries specialize in the
above manner and England trades a unit of its cloth for to units of
Portugal's wine, then both countries can consume at least a unit each of cloth
and wine, with 0 to 0.2 units of cloth and 0 to 0.125 units of wine remaining
in each respective country to be consumed or exported. Consequently, both
England and Portugal can consume more wine and cloth under free trade than in autarky.
to units of
Portugal's wine, then both countries can consume at least a unit each of cloth
and wine, with 0 to 0.2 units of cloth and 0 to 0.125 units of wine remaining
in each respective country to be consumed or exported. Consequently, both
England and Portugal can consume more wine and cloth under free trade than in autarky.|
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