Monday, February 14, 2011

Gang8 (3)


In part two of this series I quoted Keynes:

...we can draw the line between "money" and "debts" at whatever point is most convenient for handling a particular problem.

I'm with Keynes on this one, and apart from those who claim all money is debt.


You can think of the horizontal line in my graphic as a spectrum of possible divisions between money and debt. And you can "draw the line between 'money' and 'debts'" at any convenient point between zero and 100%.

My view is that in the years since the end of World War Two, we have pushed that line closer and closer to the "All Credit" end of the spectrum, until we had so much debt and so little non-credit-money that we could no longer afford our debt.

To handle our "particular problem" we must push that line back toward money, and away from the reliance on credit.

I think there is a sort of Laffer curve for that spectrum, a curve that shows economic performance as a function of the reliance on credit.


With too little credit in use, there is clear opportunity to expand credit-use and reap an era of golden-age growth. With too much credit-in-use, the factor cost of money competes with wages and with profit, and times are hard.


The curve I used for this graph may look familiar. If you don't know what it is, you can download the Excel file or open the GoogleDocs version to find out. :)

2 comments:

piet said...

gang8 = 12 years old and still not potty trained

i mean the reams and reams of redundance dragging behind and diluting their precious words like a cometary tale. And they sure like to think of themselves as the stellar type guys strewing wisdom among the big number spurtosquirters.

totally inconsiderate to small boxes (which downright seize up .. see story below ..never published and dirk ignored it) and all that icky bottom up stuff .. like modesty...

written in may09 (and things are threatening to regress that far ...
though i now have a faster box ... it does not change the ratios they pimp n dumbp):

on the 28th of may I extracted ... more like painfully extricated the 67K fresh parts from the standard 30 messages (which normally comes to between 300 and 400K a lovely expand function at yahoo groups offers which gang8 group users nevertheless manage to swell burden dilute and make as good as unworkable without succumbing to aggravation, ... in this case to 3.824Mb!!!!!

The stars there blatantly ignore, are irrespectful, ungrateful and downright sabotaging to this lurkinfoloadhandling facilitarianism. These guys do top posts and leave the foregoing trailing with as much as 5 or 6 of these >>>>>>> in front of a line making the next similarly afflicted line not appear until halfway down the screen, that is, after about as many white lines (which do disappear upon a paste into txt file at least) ... cause, ... you know ... they are top of the line streamliners, honestizers, accountability catalysts; anybody blinded by that sort of self-image can affort to damn the details of course.

THEY nevertheless work in a field the likes of Todd Boyle used to argue for drilldown in most brilliant fashion displaying thinking at work generously until frusted by the lack of interest he swung to the fleshly phases for the early stages feeding on/into the battle fields and protests recruitment practices faithfully.

To see how it is done properly, check this:
http://groups.yahoo.com/group/diggers350/messages/2228?viscount=-30&l=1
gets 30 items up to mentioned one .... ehrm .. cough ... 2266 is a BIG slip up

These 8gang-guys have not heard that youtube commenter explain how big cities are simply too costly, unsustainable uneconomic, etcetera .. no wait, i will say it outright: disastrous. And so is the practice of not pruning thread messages up to say one before last or so you assholes!!!!!!!!!!!!!!!!!!!

Here it is, one of the (at the time i dwnldd it) 87 comments, by youtube user PhotonDrive, to Michael Hudson in front of the Big Ben:

Michael: The value has cut loose from both the production & the money. The reason is the same: major goods - buildings & Transport CONSUME ENERGY rather than PRODUCING energy - this is what drives us back to medieval & is largely unquestioned. No physical space is of value - including the human body if sick: the "carrying costs" are too high; taxes, rents, interests, etc. Gov can give money to cover these which "improves" Velocity term, but adds no value - only loses more in useless "work"!


I am livid flaming mad. If i had a bucket of shit and was near Dirk and/or Gunnar i would fucking pour it over them no hesitation.

really i should ignore these morons instead of getting upset over having to hold down the scrollkey or mousebutton for 20 seconds so i can get so lucky as to read or copy maybe even as many lines added to a string of revelations under headings such as 'are financial assets in the domain of 'the concrete'?' or 'production vs thin air'

whatever you do, avoid gang8 messages 14085-14114 up to may 26th
and cuss out gunnar.tomasson@verizon.net d.j.bezemer@rug.nl] for me.

The Arthurian said...

Hi, Piet. There is so much energy in your words, they woke me up faster than my coffee this morning.

But alas, I am a slow reader, and easily confused. I'm with you on the "pruning thread messages" thing. And whitespace. A lot of whitespace in the Gang8 text. Other than that... Dirk said something nice about my work, so of course I think he must right!! :)

Art