Most of us on here are aware of what is going on and understand it. I'm wanting to create a resource of links to articles/ writings that will essentially give someone a crash course on our economic outlook. This would be primarily to educate someone who has little interest and knowledge in finance, doesn't have months to spend following blogs and researching, but is willing to sit down for an hour or so to read what seems to them as something of little importance.
I'd like to include:
1. A credible short explanation on why the FED and fractional reserve banking are destined to fail.
2. How our debt is unsustainable.
3. How and why our economy will collapse.
So far I have found a link that satisies #2.
I'm going to spend some time on zero hedge looking for short articles that adress #1 and #3.
If any of you would like to help that would be great.
That link says it pretty simply. It's how I understand the debt.
However, Ron Paul has recently said in an interview that if we froze spending at last years level, the budget would balance in less than a decade. I don't understand what he means. If you froze spending with a 1.4 trillion deficit, how would it balance? Did anyone else here this?
I saw that too. As much as I love Ron Paul.... sometimes he miss speaks. I honestly think he's getting a bit senile.... or at least is starting to feel the effects of his age.
I'd still vote for him though. LOL
Ron is usually spot on with economics. That is why I asked. I must have missed some of the interview. Unless he means inflation will balance it if you freeze. That kinda makes sense.
I just listened to it again. He's taking into account economic growth.
Here's the transcript:
Awesome thanks! I did miss some of the interview.
I will say up front I am a thoroughgoing anarcho-capitalist in the Rothbard/Hoppe tradition. I am Austrian school through and through. I do not think it is possible to get a handle on what is going on in the world without a good grasp of basic economics from a free market perspective.
The problem with conveying what is actually pretty simple once you grasp it is that there are multiple layers of conditioning and programming that most people have absorbed almost unconsciously via government schools and completely subservient media. I have to thank Ron Paul for pointing me in the right direction, but it was others who really clarified things for me.
Obviously fractional reserve fiat currency banking is the first critical hurdle. Nothing that has anything to do with economics makes any sense if you don't get that money is something that emerges from the innumerable individual voluntary interactions in the market. It is not something dictated by statute.
I used to recommend the documentaries "Money as Debt" and "The Money Masters" because they a very good job of telling how we got to where we are, but they also offer what I believe is only a slightly less worse alternative--Greenbacks. Ugh.
Misesmedia's "Money, Banking and the Federal Reserve" is pretty good, but it is getting kind of old and it is a bit dry.
Maybe others have something to suggest. What's a good, brief, accurate introduction to the federal reserve?
Money as debt is good, Chris Martensen's "Crash Course" is better. ( https://www.chrismartenson.com/crashcourse).
If you truly want to understand what is going on in the world, you must first realize that a slow moving energy crises begat a fast moving economic crises. At the heart of the world's problems is an energy withdrawal. Our economic system is dependent on infinite growth. Infinite growth requires infinite energy. You cannot have increasing economic activity without increasing consumption of energy. There simply aren't enough fossil fuels (of abundance and quality) for us to continue to grow and consume, not to mention the BRIC's who all want to rise to the standard of living of Americans. I'm telling you it will never happen. We would need 6 planet Earth's to support such growth and consumption.
Our system has become hyper-complex. It requires more and more investment every year just to maintain the status quo. This is the law of diminishing returns, or more specifically, entropy. When a system becomes as complex as ours has, it has no method of safely contracting. It must keep growing, or collapse. We have crossed too many tipping points and there are too many positive feedback loops at play. Grow or die. There is only ONE thing TPTB can do and that is mitigate. They cannot prevent the collapse.
If you want something more cerebral than a youtube video, I highly recommend reading this PDF: https://www.feasta.org/documents/risk_resilience/Tipping_Point.pdf
That is the only thing you need to read to have a crystal clear understanding of the problem.
Chris Martensen is totally wrong about the supply of energy.
I did a quick search on Gull Island. I don't want to derail this thread into a peak oil is real vs. a peak oil is not real debate. Which is exactly what it will become if you drag Lindsey Williams into it. I've given my thoughts on him in the peak oil thread in the Energy forum.
I'll just say, even if there is 100 trillion barrels of oil under Gull Island, it will never be produced before the economic collapse occurs. Further, I've been researching the subject for 3+ years now and I've never heard of this Gull Island. It seems to me if there were any legitimacy to it, I would have stumbled upon it by now. I've heard about how the Bakken shale will save us about 55,678 times.... Why haven't I heard of Gull Island?
(please don't answer that its a super secret that was only told to Lindsey Williams...)
I don't know if what Lindsey Williams has said is true or not. What I do believe is that there is a lot more oil in the US than most people realize and there are a lot bigger problems in the world than a shortage of energy.
I don't think humanity can be constrained by a single resource. We've always worked through stuff like that.
You both make good points. My point, however, is that neither one of your scenarios will manifest in time to stop the collapse even if we assume they are true.