No tuna, no salmon. No oysters, no skate. No cod and chips

… and this is one of the less intuitive repercussions of inducing inflation artificially into a system.

You may recall that inflation brings forward demand and production. You will recall that the law of diminishing returns is enshrined in the inflationary dynamic. Therefore, the expansion of inflation is exponential thus bringing about ever greater consumption of resources but not necessarily greater wealth.

Even though some of you may find it hard to see the connection, depletion of food staples is a direct consequence of the pervasive, deliberate and aggressive use of monetary inflation.

Lest you should think that this is only one journalist’s opinion, I tell you that empirical evidence supports the depletion of food staples and of fish stock. European fishermen have to journey farther and longer just to take home a catch that is diminishing in quantity and specimen size. European trawlers venture well south along the  coasts of Africa as the devastation is expanded from our shores to those of countries that as yet have no legislation in place to prevent the raping and pillaging of their natural resources. But then when the Somalis for example try to extract a living from passing ships, they are labeled “pirates”.

Without mentioning that now, the holy grail of national policy in Western industrialized nations is to restart inflation via kick-starting consumption again. Apparently, we have not yet wreaked sufficient havoc on the environment or peoples’ lives.

However, despite what all the Keynesians say, inflation does have a mathematical limit. That is because a Fiat monetary regime, like a Ponzi scheme, can only be expanded provided new currencies and new markets are brought into the system. But once all currencies and markets around the globe are in on the scam, it is arithmetically impossible to devalue the currencies below zero. And that, ladies and gentlemen, is the limit of inflation. Governments can postpone the day of reckoning but they cannot avoid it.

Postponing the day of reckoning, requires by necessity to induce ever greater imbalances in the economy in the form of debt so that when the scheme reverses, you are guaranteed to have to wade through a mountain of debt that is several orders of magnitude the global economy. The BIS estimate of global obligations outstanding at December 2007 was $500Trillions. The global economy at that time used to hover at about $50Trillion… it is now dropping fast… you do the math.

http://www.guardian.co.uk/lifeandstyle/2009/apr/26/seafood-overfishing

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2 Responses to “No tuna, no salmon. No oysters, no skate. No cod and chips”

  1. Global warming scam « Guido's temple of the absurd Says:

    […] https://guidoromero.wordpress.com/2009/04/30/1061/ […]

  2. More Western hypocrisy (or is it ignorance) « Guido's temple of the absurd Says:

    […] https://guidoromero.wordpress.com/2009/04/30/1061/ […]

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