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Here is the true problem with all this so-called Renewable Energy Malarky. Simple Greek logic... ' All Humans are Mortal ...

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Wednesday, December 19, 2012

Peter Schiff Blog: The Federal Reserve Is

Peter Schiff Blog: The Federal Reserve Is 100% Committed To The Destr...:

In order to generate phony economic growth and to “pay” our country’s debts in the most dishonest manner possible, the Federal Reserve is 10...

Well in some respects Peter is correct. Printing money and adding more debt to the nations balance sheet ends with a basic mathematical result called currency dilution or debasement. Particularly when these government based IOUs bear little or no relationship to economic activity or capacity. Not even their irrelevant reported GDP figures. 

Moreover, this "kicking the can down the road" approach holds very serious hidden dangers for future generations, as ultimately more US dollars will be required to purchase scarce raw materials and finished goods from foreign suppliers. Hence, growing the green shoots for a major inflationary cycle, and in turn, a devastating spike in interest rates that could lead to a super contraction of business activity and asset values. Ah ha!

The theoretical flaw in the FED's approach ties back to out-dated economic doctrine, that ignores both the concept of accounting for the asset side of the national balance sheet and translating this device into a metric that focuses the usable mass and energy capacities and reserves of the nation. These metrics may be defined in terms of NNRs and RNRs - respectively, non-renewable and renewable natural resources. Again, we can assert that flaw is originated in the abstractions of  "wealth of nations" thinking that constraints to the "wealth of planets" thinking, that asserts we are ultimately working within the finite constraints of a negative sum game and not the perpetrated and delusional positive sum approach actively applied by Economists, Regulators and Politicians.

Let's not forget that sooner or later foreign suppliers will figure this out too and demand either contra goods or other forms of hard currency. You see you can fool some of the people, some of the time; but you can't... 

Dr Peter G Kinesa
December 19, 2012

"Fool all of the people, all of the time."

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