Heard on money-talk radio: "Drought is bullish."
Three words show why a Wall Street economy is deadly.
The problem isn't price variation. In an honest and simple market, supply and demand move prices up and down. Drought raises prices for wheat, which encourages consumers to change their habits and encourages wheat-growers to find ways and places to grow more wheat. Price goes down again. This is NEGATIVE FEEDBACK, which is another name for LIFE.
Our problem is that the TRADERS are controlling everything. They control the government and the culture. Banks see debt as bullish, and banks control everything, so we get 100% debt and 0% savings. Traders see war as bullish, so we get 100% war and 0% peace. Traders see low grain supplies as bullish, so our policies are slanted toward eliminating farmers instead of encouraging and training more farmers. Above all, increased share value is bullish, so corporations eliminate all production and employees and customers, focusing entirely on numerical manipulation of shares.
Price is now a POSITIVE feedback loop instead of a NEGATIVE feedback loop. Everything in the system responds in one direction, aimed at increasing the activity of traders and increasing share value. POSITIVE feedback is another name for DEATH.
The alternative is the Soviet system. Businesses make excess value (profit). The government takes the profit through VAT tax, and redistributes it as investment with a goal of satisfying the needs of all the people. Needs = food, housing, clothing, work. No market, no shares, no bulls, no bears. All saving, no debt. Because the government depends on VAT, it wants businesses to make a profit.
All negative feedback, no positive feedback.
Labels: Natural law = Soviet law, SES, the broken circle