Charles chips away the bargaining efforts of us idealist (speaking for myself) with today's OfTwoMinds essay: Why the Status Quo is Doomed.
Efforts to save the status quo might focus on:
The Problem: This is a world optimized for growth
- Get money out of politics
- Re-impose the Glass-Steagall Act on banking
- Close the tax loopholes exploited by corporations and the wealthy
- Overturn the Supreme Court decision giving corporations personhood
- Restrict the Imperial War Powers of the president
- Restore the civil liberties stripped by post-9/11 legislation
and so on.All good-governance, all prudent, all necessary.
The world optimized for growth begins with little or no debt. Debt, as we know, is a way to consume future earnings today. If $1 in income can be leveraged into $10 of debt, the worker earning the $1 can consume $10 of goods and services today, or buy $10 of assets.None of this will work. We are heading into a period of great change. I cannot imagine any way that this will not be absolute chaos. Can you?The world optimized for growth is also optimized for banks and central states. Banks earn money as debt expands, and government tax revenues explode higher as population, earnings, productivity, commerce and profits all expand.
- Once the number of workers starts declining, the social security/old-age pension system implodes.
- Once households and enterprises stop borrowing more and start defaulting on existing debt, the banking sector implodes.
- Once household consumption starts declining, the retail sector implodes.
- Once tax revenues plummet and nation-states destroy their currencies with excessive borrowing and/or money-printing, nation-states implode.
The problem is the Status Quo only works in a world with plenty of room to expand.
How is the garden doing? The chickens? Any thoughts on expanding efforts to neighbors so that they all become allies? Once collapse is visibly present, denial will falter. Sooner or later. Maybe much later… How do we support neighbors get started gardening?