gunDriller
16th October 2012, 12:58 AM
"The Economic Singularity
Singularity was originally a mathematical term for a point at which an equation has no solution. In physics, it was proven that a large enough collapsing star would eventually become a black hole so dense that its own gravity would cause a singularity in the fabric of spacetime, a point where many standard physics equations suddenly have no solution.
Beyond the "event horizon" of the black hole, the models no longer work. In general relativity, an event horizon is the boundary in spacetime beyond which events cannot affect an outside observer. In a black hole it is "the point of no return," i.e., the point at which the gravitational pull becomes so great that nothing can escape."
"An economic bubble of any type, but especially a debt bubble, can be thought of as an incipient black hole. When the bubble collapses in upon itself, it creates its own black hole with an event horizon beyond which all traditional economic modeling breaks down. Any economic theory that does not attempt to transcend the event horizon associated with excessive debt will be incapable of offering a viable solution to an economic crisis. Even worse, it is likely that any proposed solution will make the crisis more severe."
http://www.mauldineconomics.com/frontlinethoughts/economic-singularity
Mauldin is a Zio-Economist, who uses Friedman's Stratfor for his 'foreign policy analysis.'
but Mauldin occasionally comes up with a good one.
He uses a metaphor from physics to describe our social & economic world.
Given the truly astronomical levels of debt & fiat that the Zio-governments have created, and the 24/7 criminality at the highest levels of business & government,
it is fair to talk about "an event horizon beyond which all traditional economic modeling breaks down."
I think it's something which many of us feel.
Maybe some pieces of physics theory can help to explain what is happening in our US economy. I would say that we have already passed the Event Horizon, for traditional fixes of the past are not working - the US government is just pretending that they are working. And they clearly have no idea what to next.
Though we do - it involves simply being honest. The US GNP is shrinking at the rate of about 8% a year, when we admit what GNP growth of 2% and an inflation rate of 10% a year really mean.
It doesn't matter how many iPhones people buy.
To some extent, the US government has already declared what it would do in such a situation - declare a "Continuity of Government" emergency, when all resources of the US government are used to guarantee the continuance of the US government. CoG was part of the early post-9-11 language coming out of the US government.
Singularity was originally a mathematical term for a point at which an equation has no solution. In physics, it was proven that a large enough collapsing star would eventually become a black hole so dense that its own gravity would cause a singularity in the fabric of spacetime, a point where many standard physics equations suddenly have no solution.
Beyond the "event horizon" of the black hole, the models no longer work. In general relativity, an event horizon is the boundary in spacetime beyond which events cannot affect an outside observer. In a black hole it is "the point of no return," i.e., the point at which the gravitational pull becomes so great that nothing can escape."
"An economic bubble of any type, but especially a debt bubble, can be thought of as an incipient black hole. When the bubble collapses in upon itself, it creates its own black hole with an event horizon beyond which all traditional economic modeling breaks down. Any economic theory that does not attempt to transcend the event horizon associated with excessive debt will be incapable of offering a viable solution to an economic crisis. Even worse, it is likely that any proposed solution will make the crisis more severe."
http://www.mauldineconomics.com/frontlinethoughts/economic-singularity
Mauldin is a Zio-Economist, who uses Friedman's Stratfor for his 'foreign policy analysis.'
but Mauldin occasionally comes up with a good one.
He uses a metaphor from physics to describe our social & economic world.
Given the truly astronomical levels of debt & fiat that the Zio-governments have created, and the 24/7 criminality at the highest levels of business & government,
it is fair to talk about "an event horizon beyond which all traditional economic modeling breaks down."
I think it's something which many of us feel.
Maybe some pieces of physics theory can help to explain what is happening in our US economy. I would say that we have already passed the Event Horizon, for traditional fixes of the past are not working - the US government is just pretending that they are working. And they clearly have no idea what to next.
Though we do - it involves simply being honest. The US GNP is shrinking at the rate of about 8% a year, when we admit what GNP growth of 2% and an inflation rate of 10% a year really mean.
It doesn't matter how many iPhones people buy.
To some extent, the US government has already declared what it would do in such a situation - declare a "Continuity of Government" emergency, when all resources of the US government are used to guarantee the continuance of the US government. CoG was part of the early post-9-11 language coming out of the US government.