Thursday 22 November 2012

Who gets "free stuff™" from the $IMFS?

BRICs/Emerging Market nations, naturally, wish to build up their own domestic production and improve the standard of living of their people. They just want what we enjoy in the West.

While "the West" were prepared (and enabled) to mortgage their own futures to debt rather than producing for themselves, and "the Rest" were getting more out of it than they stood to lose in real terms, the Rest were fairly happy indulging the West's stupidity and turning it to their advantage. The Rest increasing their own domestic standard of living and ability to produce for themselves has been more important to them than deferring consumption of their excess production exported to us (or just not producing it at all, because they couldn't afford to waste the resources that go into production - or, indeed, on building out the means of achieving production).

In a way, the Rest have been sharing in the consumption of production that the West pulled from their future, by issuing credit to them. They got the means of production, and the West got to play with the widgets. Both sides had a part in the consumption and one side is supposed to pay for it all in the end with "money".

The Rest weren't going to get the debts repaid later, in real terms, and they knew it. But they don't mind, because they have already really been paid. They can fend for themselves when the West's debt fails, or at least fails to perform in real terms even if it does pay out nominally, because the Rest were enabled to invest in their real economies while they "helped" the West (gaming the system to their advantage) by supporting the accounting mirage of the $IMFS.

They can produce pretty much anything they want domestically or among themselves. Meanwhile, the West's infrastructure has crumbled, we forgot how to make stuff, and have populations that are conditioned to enjoy the easy life.

We're fat and lazy. Fat enough for the slaughter, and so slow we can't outrun our neighbours in our attempt to escape the bear when he wakes up hungry.

Are the Rest still getting more out of it than they
stand to lose in real terms?


DP said...

Are the Rest still supporting the accounting mirage of the $IMFS?

China is still the factory of the world, but Japan (part of "the West", as a "Developed Market") doesn't really seem like it's been raising the standard of living of it's people that much (nor does it seem like it "needs to")?

So how come China seems to have let go the vendor-financing rope, while Japan has picked it up with a vengeance?

What's up with that?

fred bloggs said...

Hi DP.What happened to Blondies blog?

DP said...

Blondie is, alas, no more.

fred bloggs said...

No more, as in,' poor Bob' , or no more as in changed his mind about Freegold and got another hobby?

DP said...

"No more" as in "decided the world has changed much since Another, and he has a slightly different, & he believes superior, story of his own now". Or something in that vein at least. I think he felt he could no longer continue at the Freegold campus, because his view conflicted with that of others.

Of course, all are free to come to their own conclusions within this diverse world of ours!

fred bloggs said...


DP said...

You may also enjoy this bit of nostalgia? :-)

fred bloggs said...

Lol . Yeah i did enjoy it thanks.That Stewie s a frickin nutta when he get going!

Oh, and it seems you got lucky with that euro stuff as well ;)

Its not over till the fat lady sings though.

Its a long road to Damascus as Blondie found out.Speaking of which; i managed to tear myself away from the FOFOA site for a few weeks, round about the debriefed time.

Thought i de missed the Blondie departure comments then.But just read two regulars asking what happened to Blondie, so i m thinking it was nt in the comments?

Also why did nt he change his blog to reflect his new views?



DP said...

Guess you'd need to ask him! :-)

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