When All the Industrial Countries want to Export
All the industrial nations of the world are currently competitively devaluing their currency with the printing press. This is their attempt to increase employment by export demand.
This is my attempt to follow this to some sort of logical conclusion. Judging from the market for goods in the USA there is plenty of production capacity in the world. Yet many are without jobs to have money to buy said products.
Could it be that the increased efficiency due to automation etc has concentrated this income into tighter distributions around the people who managed to hang onto their jobs? Probably. Is this unfair? No. Probably a natural result. Will government be able to do anything? Probably no.
Why would government not be able to do anything measurable? The answer is easy to see. The people without jobs await the next industry. They can not work in the old industries because all those jobs are essentially taken as we already have sufficient production capacity! Unless and only if the government can somehow create a whole new industry then anything they do will worsen the situation. An example of this is how the Federal Reserve is trying to reinflate the economy. All this is doing is making commodity items harder for the unemployed to afford. Of course it is mightily convenient to our ruling class because they get first dibs on freshly printed money when it is worth the most it will ever be in its existence.
When will we exit this economic depression?
What will happen? We will suffer along regardless of government action until the next wave of technology rolls up on us. Nothing government does will provide that type of remedy. My guess is that due to technology having improved all our industries that any upturn will be faster than in the past due to faster deployment of solutions. As a consequence of this any boom will naturally be shorter in duration. We need the waves of technology to roll in more quickly if we want to avoid a rapid succession of boom and bust cycles leading up to the Kurzweilian technological singularity.
Examples of how government action is causing problems
- Real Estate in the USA – from Darkness to the Abyss
- A Barrage of Calls For More Interventionism
- Its not an event. It is a transition
The two above linked articles leads into the following mimi and eunace cartoon for the reason that the not too bright policies of the Keynesians is limiting the rate at which we can recover.
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