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Amadon

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  • Underlying Disaster In Europe Accelerating: Spain's Finances Collapsing [View article]
    James; I did not mention Peak Oil Theory. I was talking about ERoEI. Surely, you believe in ERoEI. It is a physical law like gravity and the Law of Diminishing Returns. It applies to grinding grain using hydro-power or having your wife carry water as well as oil, wind, nuclear, etc. Please tell me you will try to believe in ERoEI James.
    Sep 26 11:12 AM | Likes Like |Link to Comment
  • Underlying Disaster In Europe Accelerating: Spain's Finances Collapsing [View article]
    Good article here for those interested in the Pain in Spain
    4 Key Events in Spain to Watch this Week
    Tom Essaye | Wednesday, September 26, 2012 at 7:30 am
    http://bit.ly/Qx9XRC
    Sep 26 08:25 AM | Likes Like |Link to Comment
  • Underlying Disaster In Europe Accelerating: Spain's Finances Collapsing [View article]
    James; I am going to catch a lot of flack from this as I always do but it needs to be said. Any discussion of what is going on in the world economy of today that does not mention ERoEI is discussing symptoms not disease. From the early 1900's until recent times the world economy has been riding up on a tide coming in with ERoEI starting at ~ 100:1 and slowly declining to ~ 10:1 circa 2000. We are now in ebb-tide as energy becomes more expensive as it drifts toward ERoEI of ~ 3,5:1 at which point all exploration and drilling stops and the whole world becomes a sunshine economy. A sunshine economy is one that no longer lives off inherited wealth but must live hand-to-mouth on the daily ration of sunshine received.

    There is no power on earth that can reverse this. Certainly we will become more efficient and tap alternative energy sources but nothing we can do will change the fact that the cost of energy is going up and has an impact on everything we make. The most severe impact of this is being felt naturally on the economies who are most dependent on cheap legacy energy which is the developed markets.

    While this phenomenon is world wide the advantage goes to economies that have the lowest wages and living standards, thus we see the transformation going on now at a rapid pace in favour of growth and emerging markets.

    What is happening to Spain and the other club Med is what happens to a canary in a coal mine when conditions become toxic and we should not casually dismiss it.

    Note: Before you flame me please run your peepers over this graph.
    http://bit.ly/LZVYyw
    Sep 26 06:00 AM | 1 Like Like |Link to Comment
  • Underlying Disaster In Europe Accelerating: Spain's Finances Collapsing [View article]
    That is the same as here in the U.S.
    Sep 25 06:18 PM | 4 Likes Like |Link to Comment
  • Underlying Disaster In Europe Accelerating: Spain's Finances Collapsing [View article]
    Thanks Led; I love irony. I like to take an argument to its logical conclusion. Like if 0% interest is good then negative interest would be even better. :>) Did I do that right?
    Sep 25 05:20 PM | 4 Likes Like |Link to Comment
  • Underlying Disaster In Europe Accelerating: Spain's Finances Collapsing [View article]
    Oh that's right, every bomb in existence at that time was dropped. Still there are only 19,200 bombs in existence now. All in very responsible hands so what could possible go wrong?
    Sep 25 03:59 PM | 1 Like Like |Link to Comment
  • Underlying Disaster In Europe Accelerating: Spain's Finances Collapsing [View article]
    "people are eating out of garbage cans.". Sounds like the pain in Spain falls mostly on the plain.

    Let us just be thankful that could never happen here. In fact, I just read that beer in the U.S. is cheaper than any where in the world.
    http://rss.slashdot.org~r/Slashdot/slashd...
    Sep 25 03:39 PM | Likes Like |Link to Comment
  • Underlying Disaster In Europe Accelerating: Spain's Finances Collapsing [View article]
    TS; You are absolutely correct. There is no country in the world crazy enough to use a nuclear bomb. Never has been and never will be. That's why a nuclear bomb has never been used.
    Sep 25 03:13 PM | 2 Likes Like |Link to Comment
  • Underlying Disaster In Europe Accelerating: Spain's Finances Collapsing [View article]
    Perhaps a better a better solution would be to try to get an increase in the maximum credit limit then borrow against that before going into default then leave the union and set up your own printing press and declare that you will print in unlimited amounts until the economy improves. There are some recent precedents for this in well respected economies.
    Sep 25 01:56 PM | 2 Likes Like |Link to Comment
  • More on Case-Shiller: For the 3rd consecutive month, all 20 tracked cities posted monthly price gains. Not seasonally adjusted, prices rose 1.6% in July from June, following a 2.3% gain in June from May. On a Y/Y basis, Atlanta remains the outlier - by a wide margin - on the downside, with prices off 9.9%. Phoenix leads the gainers, up 16.6% Y/Y. (full report, .pdf) [View news story]
    I am so thankful to be alive during these historic times. I was born in 1937 so I was too young to fully appreciate the great depression. To make matters worse my whole family and community were dirt poor farmers and because we had no electricity, tv, radio, indoor plumbing and such, so we never found out there was a great depression going on until many years after it was over. I have always looked with envy on those who lived through the exciting times of the French Revolution and the hyper-inflation of Germany. I know that there have been many episodes of financial collapse throughout history but I feel sure that the central bankers have learned from the mistakes of the past. Dr. B. is after all a student of these kind of calamities.
    http://bit.ly/NturHC
    Sep 25 01:07 PM | 2 Likes Like |Link to Comment
  • More on Case-Shiller: For the 3rd consecutive month, all 20 tracked cities posted monthly price gains. Not seasonally adjusted, prices rose 1.6% in July from June, following a 2.3% gain in June from May. On a Y/Y basis, Atlanta remains the outlier - by a wide margin - on the downside, with prices off 9.9%. Phoenix leads the gainers, up 16.6% Y/Y. (full report, .pdf) [View news story]
    Bingo! You are so right sir; No need to worry. All the central banks need to do is repeal the Law of Diminishing Returns and they are on track to do just that. The problem has been slowing world economy growth due to declining EROEI which causes the price of any limited commodity to increase as consumption of that commodity grows. Fortunately this can be overcome because the central banks have a devise which can produce money in unlimited, infinite quantities. Therefore the price of commodities no longer matter. As we all know cheap and easy money also stimulates business and economic growth. All of the major economies are in the right direction as they approach 0% interest rate. What we really need is negative interest rates to spur growth and prime the pump. In other words the more you borrow the more you make. We can solve the worlds poverty problems by allowing poor people to go to the front of the line to borrow money at negative interest rates and thereby increase the consumer base for the products we will be producing now that the Law of Diminishing Returns has been repealed. Please notice that the increased consumption will also solve the employment problem. We are entering into a wonderful new world now that the Law of Diminishing returns has been repealed.

    I think it may be time for us to look into genetic engineering to see if we can grow wings. It would solve many problems associated with transportation, like gas prices.
    Sep 25 12:25 PM | 1 Like Like |Link to Comment
  • More on Case-Shiller: For the 3rd consecutive month, all 20 tracked cities posted monthly price gains. Not seasonally adjusted, prices rose 1.6% in July from June, following a 2.3% gain in June from May. On a Y/Y basis, Atlanta remains the outlier - by a wide margin - on the downside, with prices off 9.9%. Phoenix leads the gainers, up 16.6% Y/Y. (full report, .pdf) [View news story]
    This imaginary money stuff is great. I don't know why they don't just print up about a trillion more and pay China off. It would save us a ton of interest payments. Might be a good idea to give them an extra trillion or so as pre-payment for more of their wonderful widgets while we are about it. Then we could print up a few trillion more to repair and replace our ageing infrastructure and jump-start our economy. I would also like to see them fund a colony on the moon like Newt was talking about. We really need to get on with our search for intelligent life in the universe so that we can educate others about our discovery of unlimited imaginary money.
    Sep 25 12:05 PM | 1 Like Like |Link to Comment
  • More on Case-Shiller: For the 3rd consecutive month, all 20 tracked cities posted monthly price gains. Not seasonally adjusted, prices rose 1.6% in July from June, following a 2.3% gain in June from May. On a Y/Y basis, Atlanta remains the outlier - by a wide margin - on the downside, with prices off 9.9%. Phoenix leads the gainers, up 16.6% Y/Y. (full report, .pdf) [View news story]
    How wonderful. Almost a 4% gain in two months from May to July. That works out to be a 24% yearly increase. If this continues I will be a millionaire soon. And they said printing money wouldn’t work.
    Sep 25 11:45 AM | 3 Likes Like |Link to Comment
  • A Yen-Dollar Ugly Contest [View article]
    Bachar; Well said sir. Many old fashioned critics of the new economics often point to demographics as a problem but what they forget is our mastery of technology and innovation. Because of our ability to control our own genetics we can avoid the problems the dinosaurs faced by simply making ourselves smaller. We can also through genetic engineering grow wings. By doing so we would require less energy and it would solve transportation problems. I can foresee the day when everyone on earth will be able to dance on the head of a pin.
    Sep 25 08:22 AM | Likes Like |Link to Comment
  • A Yen-Dollar Ugly Contest [View article]
    Elliott; No need to worry. All the central banks need to do is repeal the Law of Diminishing Returns and they are on track to do just that. The problem has been slowing world economy growth due to declining EROEI which causes the price of any limited commodity to increase as consumption of that commodity grows. Fortunately this can be overcome because the central banks have a devise which can produce money in unlimited, infinite quantities. Therefore the price of commodities no longer matter. As we all know cheap and easy money also stimulates business and economic growth. All of the major economies are in the right direction as they approach 0% interest rate. What we really need is negative interest rates to spur growth and prime the pump. In other words the more you borrow the more you make. We can solve the worlds poverty problems by allowing poor people to go to the front of the line to borrow money at negative interest rates and thereby increase the consumer base for the products we will be producing now that the Law of Diminishing Returns has been repealed. Please notice that the increased consumption will also solve the employment problem. We are entering into a wonderful new world now that the Law of Diminishing returns has been repealed.
    Sep 25 07:04 AM | Likes Like |Link to Comment
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163 Comments
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