Monday, November 19, 2012

Nouriel Roubini Blog: The Economic Contraction Is Spreading Now To The C...

Nouriel Roubini Blog: The Economic Contraction Is Spreading Now To The C...:

The economic contraction used to be in the periphery of the euro zone. It is spreading now to the core of the euro zone. For example, it is ...


What France, Germany and other core Euro nations are heading into a recession? In all, this should not be surprising as we define and delineate the Meta-Economy: Wealth-of-the-Planet-Economy, into three major components.

First, is the abstractionist economy (neo-classical) that is the primary concern of the media, academics and politicians. It is however the shenanigans invoked through its contextual logic and mathematics that distracts our attention from the real root issues.

The real economy is the second component that many often refer to; focusing on the actual production and consumption of physical goods and services. Its perspective neutralizes the subjective influences of the monetary and financial abstract systems, thereby providing a more unbiased view of human activities.

Then there is the physical economy that views human activity as the conversion of finite usable elements of mass and energy into consumable objects. Constraints are therefore prevalent under its umbrella as it ties back to the hard principles of physics and mathematics. Importantly, it recognizes that as entities - nations -deplete their usable elements (e.g. Nauru); and similarly affect direct output and economic activity correlations. Little reference is generally made to this element, despite its remarkable predictive qualities.

So I guess that's why we are not often surprised. By the way, a look at our recommended readings list provides a little insight into a general theory of reality that pervades our thinking. 

Dr Peter G Kinesa
November 19, 2012


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