After a few years of covid propaganda, I’m now hearing constant haranguing to inform me that digital currencies are inevitable. I don’t believe that they are inevitable over any sort of long term and if they are introduced and forced on everyone, I believe they will soon fail. But why would they fail you ask after all these days of hearing declarations that they are the wave of the future? They will fail because our U.S. economy is performing so poorly. We can see a less than zero % growth GDP (look at shadowstats.com). We have a shrinking economy not a growing economy. Therefore it appears that there’s truly nothing that can represent growing value being produced to carry digital currency forward as a symbol that represents value in our economy. Therefore digital currency won’t represent value. If digital currency doesn’t represent value, it can’t succeed as a currency.
Moving right along with a slightly different topic, there’s been a notion that something was wrong with the old economy and the sooner policy makers can destroy the old economy, the sooner a new economy can take its place. The problem is that the new economy is built on financialization which parasitized the old economy. But financialization is a secondary system that siphons value out of the old production economy which is now mostly out of value. The destruction of a production economy in favor of a finanacialized economy is absolutely a temporary thing. Eventually you have to return to a production economy and the current fantasy isn’t about production, it’s about disruption. Financialization disruption, IT disruption, a broken legal system leading to legal disruptions.
The notion that chaotic disruption can lead to a better future is a rotten and damaging notion that has had too long a tenure in the minds of far too many policy makers. Foolishness will eventually show its character and now it has. Look at the economy. It’s failing right now in front of you. There are fewer jobs than during the Great Recession and also fewer than over its long aftermath.
So many people (outside media pundits, of course) have come to a state of economic and political despair that many of them are looking at the future with a bleak and bleary discomfort. I am sorry to see so many people feeling hopeless. Like the situation when a large jetliner crashes, a lot of factors are lined up to create what looks like an inevitable catastrophe.
Unaccountable government is the worst, or that’s what I feel in my own heart. Wild and terrible choices in favor of warfare, in favor of deregulation (you remember, banking/finance, transportation, energy, communications) in favor of electronic voting hoaxes, in favor of malinvestments great and small, in favor of false narratives about covid vaccines, in favor of outsourcing our lines of U.S. production, in favor of MIC moneymaking in unnecessary wars just for the sake of more capital for a few war investors. There have been for far too long, far too many who have been in favor of poorer and progressively poorer policies that no one ever corrects or admits were a mistake that caused tragedies. Yuck. Yuck. Yuck.
When I think back on my earliest university training, I recall taking a class for a few weeks that was about entrepreneurial enterprises. I would occasionally take classes outside of my science major that might help me have a more well rounded education. This class I dropped after about 6 weeks. But during the early period of enrollment, I bought and looked over the textbook and I remember thinking that what they were proposing would never work. And that I would never want to do that.
I was surprised to read how the authors were advocating that American entrepreneurs should outsource production to other nations with cheaper labor. I remember thinking that outsourcing of production lines wouldn’t work over the long term for a variety of reasons. Reasons like: doing that would get rid of American jobs, it would make the U.S. vulnerable to other nations that might sabotage products or cut off the off-shored supplies or increase prices when we could least afford to pay a price increase. And what would happen in a war?
And then to my amazement, a lot of entrepreneurs outsourced American supply lines and made some money over the short-term but now, today, we are seeing significant supply shortages in machine parts and computer chips. And so many medicines are made abroad that we are now vulnerable to medical supply shortages.
Now the U.S. is facing the bitter prospect of re-home-sourcing our production lines for computer chips, medical product manufacture and machine parts in the midst of an economic collapse because of covid shutdowns, malinvestments and monetary policy failures. Politicians declare that we will need higher taxes and open borders in a nonperforming economy and I can only say what a yucky solution that is and also it won’t work. Why won’t this work? Higher taxes can’t or won’t be paid in a non-performing economy because there aren’t enough jobs to increase the pool of income tax payers and also if someone can’t pay property tax, and those out of work can’t, the municipality can’t collect it. The exoskeleton of the once robust U.S. economy is full of broken down factories that are empty, office buildings for rent or sale, too-expensive healthcare, too-expensive real estate, too-expensive tuition. All of that is part of the old destroyed economy. What part of today’s economy supports the prices of any of that?
Where can any of us find hope for the future? Not in our current political leadership, financial leadership, news media, expensive computer chipped cars and trucks, broken health care, failing education system and vaccine mandates. Nor in digital currencies. But what about energy? There might be a glimmer of hope in low energy nuclear reactions, LENR, or at least that’s what it says at this arpa publication:
This is a summary of Japanese research into LENR and this report published in 2021 suggests that the Japanese can produce a lot of energy from LENR using metal salts that require nickel. And the Japanese might not be the only ones because so many have been investing in fusion research. Another point: you might have noticed the price of nickel just took a jump. Maybe this publication and the finally long awaited arrival of cold fusion is the reason why nickel took a jump up. And I can’t help but wonder if all the disruption that we’ve been seeing in economics and politics has something to do with leveraging the assets and accumulated capital of the old guard petroleum based economic titans, so that they can quickly invest in a new cheap energy that may revitalize economies all around the world. I guess that I’d rather hope for a constructive plan than a destructive one.
What enormous churn the economy will soon experience if a new cheaper energy can be exploited without harming the environment and one that is useful in our modern technology economies that need cheaper energy. And eventually, cheaper energy will help our economies revive.
In any case, never give up hope in a better tomorrow. It can come along any day now.