What good is a used up world?

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Bakustra
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Re: What good is a used up world?

Post by Bakustra »

J wrote:
Bakustra wrote:
J wrote:US government bonds. If they default or fail to pass through the coupon, you have much larger problems to worry about than money.
You are still taking a risk with those, just like with CD accounts and other such very low-risk investments, because you are transferring money into a form that you can't access easily, thereby taking the risk that you will need the money in the future. You take the risk of running low on money now, for an increased reward in the future. There is a similar risk in investing in land/real estate; while land prices (as opposed to house prices) are not particularly volatile, they still involve transferring money to a form that can't be readily accessed in the hopes of making a return on this investment. Yeah, I'm not seeing how this is exempt from the principle of risk versus reward, unless we are to define risk as solely a matter of catastrophic collapses and failures.
US goverment bonds are a form of money which isn't easily accessed? I guess you haven't heard of this thing known as the bond market? And I suppose you don't know that said bonds are cashable and take precedence above all else at financial institutions? In other words, if a bank has $20k sitting in its vault and I wish to cash in my $15k in bonds while someone else wants to pull $10k from his demand deposit account (you do know what a demand deposit is, right?) and another wants to exchange 10oz of gold bars for cash, the other two people are completely out of luck. Short term T-bills are as good as money in your hand. By the time that significant losses are being taken on those T-bills, the system is so screwed that the dollar bills in your wallet are worthless anyway, as are all other traditional stores of value.
They're not legal tender. Therefore, you can be mildly inconvenienced, or you could lose returns by cashing them early. The risk is a tiny one, much like with CD accounts, but that just means that you take a minimal risk for a relatively small reward, and your reward is based upon waiting until it matures. There are other risks involved, but you still hold to the idea of all risks being catastrophic in nature.
It appears you do not understand the difference between investing and speculating. Investing is in short, seeking a secure long term return on capital based upon solid fundamentals, for example, buying shares of Canadian banks 15 years ago and holding them for the long haul. Speculation is playing any & all price movements for gains regardless of the fundamentals, for instance, going long on the USD because it took a big dump the day before. There is no reason why the USD should move either way, it's a pure gamble based on nothing.
So what is the fundamental difference, then? One is taking sane risks, the other crazy risks, but both involve trading off potential risks versus potential rewards. The fact that one is immoral because of its deleterious effects on the market simply means that investments should ideally be made carefully, not that there is some fundamental divide between investment and speculation for practical purposes (i.e. without going into the problem of discerning motivations).
Look up "capital formation". Investment is. Speculation isn't.
So you define speculation in such a way that it is inherently malefic. I'm not seeing any sort of difference between my point and yours, apart from some desire to always come out on top.
Darth Wong wrote:Well, if we're going to draw a shiny line between investment and speculation, I don't think it would be that hard. If you hold onto assets for years, it's investing. If you have rapid turnover or highly leveraged (which requires rapid turnover), then it's speculation. Why make everything seem more complicated than it is?
That's not really a definition I have a problem with, since it coincides with mine. I just take exception with efforts to divorce speculation from investment and claim that they are totally different.
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Samuel
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Re: What good is a used up world?

Post by Samuel »

In times of economic depression people always become concerned about the future, in the 30's people were thinking that the world would become a terrible place in 50 years. During the 70's stagflation people started thinking that by 2000 the world would suck, pollution, etc. This type of concern is always irrational thought.
In all due fairness, the people in the 30s were right about the near future.
Wow. Whatever the hell you're smoking . . . I want some of that. As has been stated, there are nations in Europe whose economic situations are quite precarious. And one blithely disregards the fate of the US and western Europe at their peril, as the driving force behind much of the global economy is American IOUs.
Specifically American and European economies make up about half of the planets GDP.
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Re: What good is a used up world?

Post by J »

Bakustra wrote:They're not legal tender. Therefore, you can be mildly inconvenienced, or you could lose returns by cashing them early. The risk is a tiny one, much like with CD accounts, but that just means that you take a minimal risk for a relatively small reward, and your reward is based upon waiting until it matures. There are other risks involved, but you still hold to the idea of all risks being catastrophic in nature.
1) What needs to happen for T-bills to suffer a sizable loss in value?
2) What needs to happen such that one cannot promptly liquidate his holdings in T-bills?
All plausible scenarios I can think of which results in one of the above will render a larger loss to the value of physical legal currency and other stores of value such as gold.
Look up "capital formation". Investment is. Speculation isn't.
So you define speculation in such a way that it is inherently malefic. I'm not seeing any sort of difference between my point and yours, apart from some desire to always come out on top.
Speculation due its nature does not lead to capital formation. Put it this way, Goldman-Sachs and JPM do not add anything to the economy, let alone anything productive by churning $100 billion in high frequency trades every day. Google doesn't gain anything if I daytrade their shares to pocket a profit. If on the other hand I make an investment in Exxon-Mobil shares, it gives them some added capital so they can do more exploring and produce more oil at affordable prices for the use of our industry, which is a net positive for the economy. Through my purchase of its shares, Exxon-Mobil can increase its productivity and its worth along with that of the nation.
Darth Wong wrote:Well, if we're going to draw a shiny line between investment and speculation, I don't think it would be that hard. If you hold onto assets for years, it's investing. If you have rapid turnover or highly leveraged (which requires rapid turnover), then it's speculation. Why make everything seem more complicated than it is?
That's not really a definition I have a problem with, since it coincides with mine. I just take exception with efforts to divorce speculation from investment and claim that they are totally different.
I can buy & hold various commodity futures contracts which don't expire for years. Investment or speculation? I can also buy LEAPS & other finance products and hold them for years. Not so simple.
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Re: What good is a used up world?

Post by Bakustra »

J wrote:
Bakustra wrote:They're not legal tender. Therefore, you can be mildly inconvenienced, or you could lose returns by cashing them early. The risk is a tiny one, much like with CD accounts, but that just means that you take a minimal risk for a relatively small reward, and your reward is based upon waiting until it matures. There are other risks involved, but you still hold to the idea of all risks being catastrophic in nature.
1) What needs to happen for T-bills to suffer a sizable loss in value?
2) What needs to happen such that one cannot promptly liquidate his holdings in T-bills?
All plausible scenarios I can think of which results in one of the above will render a larger loss to the value of physical legal currency and other stores of value such as gold.
I have the sneaking suspicion that you are not reading what I'm saying, especially since I've pointed out this annoying little habit of assuming that every loss must be from a major catastrophe. I will lay things out one final time in the hope that this time you might actually read what I'm saying:

1. I buy a bond. I then cash said bond. Without any fees for cashing it, I have zero gain, but I have lost any returns from letting it mature.
2. I buy a bond. I cash said bond halfway to maturity. I have gained half the total returns from letting it mature, but lost the remainder, as well as the time it took to accrue that interest.
3. I buy a bond. I cash said bond once it matures. I have gained the full returns, but lost the time taken to mature the bond.
With a bond, you are trading off the possibility of needing the money now for the gains made by letting it lie. Tiny inconveniences and tiny risks, but then again, the returns are low when measured against the time necessary. There is also the risk of forgetting where the bond is and never cashing it. Just because the risks are small does not mean that they do not exist, and not every risk is a matter of financial collapse. You are being very myopic about this.
Look up "capital formation". Investment is. Speculation isn't.
So you define speculation in such a way that it is inherently malefic. I'm not seeing any sort of difference between my point and yours, apart from some desire to always come out on top.
Speculation due its nature does not lead to capital formation. Put it this way, Goldman-Sachs and JPM do not add anything to the economy, let alone anything productive by churning $100 billion in high frequency trades every day. Google doesn't gain anything if I daytrade their shares to pocket a profit. If on the other hand I make an investment in Exxon-Mobil shares, it gives them some added capital so they can do more exploring and produce more oil at affordable prices for the use of our industry, which is a net positive for the economy. Through my purchase of its shares, Exxon-Mobil can increase its productivity and its worth along with that of the nation.
So any stock-trading that doesn't involve somebody buying from a company is speculation now? You appear to be dismissing the possibility of individuals contributing to an economy outright. If somebody uses money they make day-trading to buy themselves a new yacht, they are contributing to the economy, though not in a very productive way.
Darth Wong wrote:Well, if we're going to draw a shiny line between investment and speculation, I don't think it would be that hard. If you hold onto assets for years, it's investing. If you have rapid turnover or highly leveraged (which requires rapid turnover), then it's speculation. Why make everything seem more complicated than it is?
That's not really a definition I have a problem with, since it coincides with mine. I just take exception with efforts to divorce speculation from investment and claim that they are totally different.
I can buy & hold various commodity futures contracts which don't expire for years. Investment or speculation? I can also buy LEAPS & other finance products and hold them for years. Not so simple.
Yes, and futures are not necessarily speculative, especially in this instance. You're investing in the hope that you can make a profit on said items when the contract comes due, presumably, if you're planning to hold them for years.
Invited by the new age, the elegant Sailor Neptune!
I mean, how often am I to enter a game of riddles with the author, where they challenge me with some strange and confusing and distracting device, and I'm supposed to unravel it and go "I SEE WHAT YOU DID THERE" and take great personal satisfaction and pride in our mutual cleverness?
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Re: What good is a used up world?

Post by mr friendly guy »

I am less worried about energy usage since nuclear can solve that issue (whether ENOUGH countries adopt it is another matter). Even with petrol people have suggested solutions.

The other concern is the raw materials with developing nations aspiring to first world level lifestyles. I have a suggestion. Limit credit. Using China as the pertinent example, despite the stimulus package small businesses find banks won't lend them money. If Chinese consumers can't get the credit to buy that new awesome flatscreen tv (and lets face it, they save more than US consumers) then they will just have to do without it. Less demand for products equals less use of raw materials. And just to be fair, I think this should be applied to developed economies as well.

As to how we limit credit, I can't imagine how deregulated financial systems can do it aside from central banks not pumping liquidity into the markets. Because (using the example of buying a house) any attempt to say this person must provide x % of the cost in savings before the bank can lend you money would be met with opposition and people crying out let the market decide. Of course in less deregulated systems, eg China the government can just legislate it into law without significant opposition.

Now whether this new lifestyle of budgeting, and not buying things unless you really really want it advocated by financial gurus everywhere still counts as first world lifestyle is another matter. I mean having one television for the whole house as opposed to two in a room (as another poster's family had) is pretty good in my book.

Which brings me to my next point. What do people consider a first world lifestyle anyway for an individual or family or 2 kids (the average in Australia is between 2-3). How would you judge it? By GDP (by purchasing power parity) / capita? Or perhaps considering what possessions each person on average owns (which is a bit more easy to relate to than just numbers in the bank account).
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Re: What good is a used up world?

Post by J »

Bakustra wrote:I have the sneaking suspicion that you are not reading what I'm saying, especially since I've pointed out this annoying little habit of assuming that every loss must be from a major catastrophe. I will lay things out one final time in the hope that this time you might actually read what I'm saying:

1. I buy a bond. I then cash said bond. Without any fees for cashing it, I have zero gain, but I have lost any returns from letting it mature.
2. I buy a bond. I cash said bond halfway to maturity. I have gained half the total returns from letting it mature, but lost the remainder, as well as the time it took to accrue that interest.
3. I buy a bond. I cash said bond once it matures. I have gained the full returns, but lost the time taken to mature the bond.
With a bond, you are trading off the possibility of needing the money now for the gains made by letting it lie. Tiny inconveniences and tiny risks, but then again, the returns are low when measured against the time necessary. There is also the risk of forgetting where the bond is and never cashing it. Just because the risks are small does not mean that they do not exist, and not every risk is a matter of financial collapse. You are being very myopic about this.
No, I'm not reading what you're saying. As far as I understand it, if the money isn't physically in your hands, it's a loss of some sort. Correct me if I'm wrong on this.
Speculation due its nature does not lead to capital formation. Put it this way, Goldman-Sachs and JPM do not add anything to the economy, let alone anything productive by churning $100 billion in high frequency trades every day. Google doesn't gain anything if I daytrade their shares to pocket a profit. If on the other hand I make an investment in Exxon-Mobil shares, it gives them some added capital so they can do more exploring and produce more oil at affordable prices for the use of our industry, which is a net positive for the economy. Through my purchase of its shares, Exxon-Mobil can increase its productivity and its worth along with that of the nation.
So any stock-trading that doesn't involve somebody buying from a company is speculation now? You appear to be dismissing the possibility of individuals contributing to an economy outright. If somebody uses money they make day-trading to buy themselves a new yacht, they are contributing to the economy, though not in a very productive way.
Let's say I pocket $100k on a daytrade. This is $100k which is taken out of the hands of other traders and the company whose share I sold. Unless I can and do make better use of this money the company and those other traders, it's not a gain for the economy. If for example I make $50k from trading BAC shares and use it to buy a new Ford, it's a net gain for the economy. If I take my $2000 profit from trading Caterpillar and go on a WalMart shopping spree, it's arguably a loss for the economy since I'm contributing to and supporting offshored jobs and the destruction of my country's manufacturing base. I spent $2000, most of it ends up in China, that was money which Caterpillar could've put to far more productive use than my WalMart shopping spree.
I can buy & hold various commodity futures contracts which don't expire for years. Investment or speculation? I can also buy LEAPS & other finance products and hold them for years. Not so simple.
Yes, and futures are not necessarily speculative, especially in this instance. You're investing in the hope that you can make a profit on said items when the contract comes due, presumably, if you're planning to hold them for years.
Futures aren't necessarily speculative, but they often are. Various producers and consumers will use them to lock in a price for future delivery so they're not bankrupted by price volatility, for example, Southwest Airlines locked in a large number of fuel contracts so they fared relatively well when oil prices spiked. Farmers do the same from crops so they can stay in business and expand their operations.

However, the vast majority of people who buy & trade futures contracts are neither the producers nor consumers of the product on which the futures contract is based. They don't make, sell, buy, take delivery, touch, see, smell, or have anything to do with the product other than trading its futures contracts. It's a pure spec play, the buyer of the contract is betting that he can offload the contract for a profit before it expires, or in the case of LEAPS, exercise the options to carry out an insta-trade on the underlying for a profit. It's just like betting on horses, and adds about as much to the economy.
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Re: What good is a used up world?

Post by Bakustra »

J wrote:
Bakustra wrote:I have the sneaking suspicion that you are not reading what I'm saying, especially since I've pointed out this annoying little habit of assuming that every loss must be from a major catastrophe. I will lay things out one final time in the hope that this time you might actually read what I'm saying:

1. I buy a bond. I then cash said bond. Without any fees for cashing it, I have zero gain, but I have lost any returns from letting it mature.
2. I buy a bond. I cash said bond halfway to maturity. I have gained half the total returns from letting it mature, but lost the remainder, as well as the time it took to accrue that interest.
3. I buy a bond. I cash said bond once it matures. I have gained the full returns, but lost the time taken to mature the bond.
With a bond, you are trading off the possibility of needing the money now for the gains made by letting it lie. Tiny inconveniences and tiny risks, but then again, the returns are low when measured against the time necessary. There is also the risk of forgetting where the bond is and never cashing it. Just because the risks are small does not mean that they do not exist, and not every risk is a matter of financial collapse. You are being very myopic about this.
No, I'm not reading what you're saying. As far as I understand it, if the money isn't physically in your hands, it's a loss of some sort. Correct me if I'm wrong on this.
When you cash a bond early, you are taking a "loss" because you are giving up the potential for a fully matured bond in exchange for cash now. When you buy bonds, as an individual consumer, you are betting that you won't need the money before the bond matures completely. Therefore, you are taking a slight risk that you will need the money and therefore will have to give up the difference between the matured value and the value when you need the cash. They are practically stable, but there is still a small risk involved. Commensurately, the payoff is smaller.
Speculation due its nature does not lead to capital formation. Put it this way, Goldman-Sachs and JPM do not add anything to the economy, let alone anything productive by churning $100 billion in high frequency trades every day. Google doesn't gain anything if I daytrade their shares to pocket a profit. If on the other hand I make an investment in Exxon-Mobil shares, it gives them some added capital so they can do more exploring and produce more oil at affordable prices for the use of our industry, which is a net positive for the economy. Through my purchase of its shares, Exxon-Mobil can increase its productivity and its worth along with that of the nation.
So any stock-trading that doesn't involve somebody buying from a company is speculation now? You appear to be dismissing the possibility of individuals contributing to an economy outright. If somebody uses money they make day-trading to buy themselves a new yacht, they are contributing to the economy, though not in a very productive way.
Let's say I pocket $100k on a daytrade. This is $100k which is taken out of the hands of other traders and the company whose share I sold. Unless I can and do make better use of this money the company and those other traders, it's not a gain for the economy. If for example I make $50k from trading BAC shares and use it to buy a new Ford, it's a net gain for the economy. If I take my $2000 profit from trading Caterpillar and go on a WalMart shopping spree, it's arguably a loss for the economy since I'm contributing to and supporting offshored jobs and the destruction of my country's manufacturing base. I spent $2000, most of it ends up in China, that was money which Caterpillar could've put to far more productive use than my WalMart shopping spree.
But you're still contributing to the Chinese economy in that case. Unless you destroy or otherwise remove the cash from circulation (note that putting it in a bank still contributes to the economy by expanding their ability to make loans) then the money will still contribute to the economy somewhere. It may not contribute in an ideal way, but it doesn't vanish either.
I can buy & hold various commodity futures contracts which don't expire for years. Investment or speculation? I can also buy LEAPS & other finance products and hold them for years. Not so simple.
Yes, and futures are not necessarily speculative, especially in this instance. You're investing in the hope that you can make a profit on said items when the contract comes due, presumably, if you're planning to hold them for years.
Futures aren't necessarily speculative, but they often are. Various producers and consumers will use them to lock in a price for future delivery so they're not bankrupted by price volatility, for example, Southwest Airlines locked in a large number of fuel contracts so they fared relatively well when oil prices spiked. Farmers do the same from crops so they can stay in business and expand their operations.

However, the vast majority of people who buy & trade futures contracts are neither the producers nor consumers of the product on which the futures contract is based. They don't make, sell, buy, take delivery, touch, see, smell, or have anything to do with the product other than trading its futures contracts. It's a pure spec play, the buyer of the contract is betting that he can offload the contract for a profit before it expires, or in the case of LEAPS, exercise the options to carry out an insta-trade on the underlying for a profit. It's just like betting on horses, and adds about as much to the economy.
So we agree, then.
Invited by the new age, the elegant Sailor Neptune!
I mean, how often am I to enter a game of riddles with the author, where they challenge me with some strange and confusing and distracting device, and I'm supposed to unravel it and go "I SEE WHAT YOU DID THERE" and take great personal satisfaction and pride in our mutual cleverness?
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Re: What good is a used up world?

Post by J »

Bakustra wrote:When you cash a bond early, you are taking a "loss" because you are giving up the potential for a fully matured bond in exchange for cash now. When you buy bonds, as an individual consumer, you are betting that you won't need the money before the bond matures completely. Therefore, you are taking a slight risk that you will need the money and therefore will have to give up the difference between the matured value and the value when you need the cash. They are practically stable, but there is still a small risk involved. Commensurately, the payoff is smaller.
And you define the potential for this "loss" as a gamble? Jesus.
Let's say I pocket $100k on a daytrade. This is $100k which is taken out of the hands of other traders and the company whose share I sold. Unless I can and do make better use of this money the company and those other traders, it's not a gain for the economy. If for example I make $50k from trading BAC shares and use it to buy a new Ford, it's a net gain for the economy. If I take my $2000 profit from trading Caterpillar and go on a WalMart shopping spree, it's arguably a loss for the economy since I'm contributing to and supporting offshored jobs and the destruction of my country's manufacturing base. I spent $2000, most of it ends up in China, that was money which Caterpillar could've put to far more productive use than my WalMart shopping spree.
But you're still contributing to the Chinese economy in that case.
Sure, and if that money had stayed with Caterpillar it could've been used to increase productivity and pay out $10k in additional wages to be blown at Wallyworld to support Chinese industry.
Unless you destroy or otherwise remove the cash from circulation (note that putting it in a bank still contributes to the economy by expanding their ability to make loans) then the money will still contribute to the economy somewhere. It may not contribute in an ideal way, but it doesn't vanish either.
Wrong. This assumes that banks are willing to lend and people are able to borrow. Let's take a look at the Fed's H3 table, specifically, the total reserves of depository institutions. It's increased quite a bit over the past year. However, MZM which is the broad measure for the liquid money supply in the economy has actually declined during the same timeframe. Looks a lot like vanishing money to me.

Image
So we agree, then.
No, we do not. Your argument is that my purchase of commodity futures contracts is not speculative since I intend to profit on the trade of the underlying item when the contract is due. I'm telling you that this is not the case, and I've explained why this isn't the case in the vast majority of futures contracts which are traded on various exchanges. I have no intention of trading the underlying, I'm trading the futures contract itself, this is a pure speculative play.
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Re: What good is a used up world?

Post by Kuroji »

Okay. Quick rundown of the problems and possibilities on solving them that I've seen in this thread.

1. Clean water.
Cities are very thirsty creatures, and about the best solution you're going to get without running your natural aquafiers and water reservoirs dry is bringing it in from the coast. Ultimate solution: Desalinization plants, because anything else is going to prove insufficient, until someone invents affordable wind traps a la Dune.

2. Sufficient food of quality.
Hydroponics, aeroponics, sustainable farming practices, and if anyone ever figures out a way to do it, cloned meat; until then, we're doing about the best we can with the meat farms we've got. Yes, they're often cruel. No, I don't really care enough to go vegan, as humans are omnivores and until my teeth are all molars and my digestive tract is designed for a pure vegetarian diet I'm going to keep eating meat, thank you very much, but I detest unsafe and unnecessarily cruel practices and I make my purchases in accordance to that. But when cloned meat starts coming on the market, I expect it'll be a superior and safer product and I intend to buy it to help create demand. Beside, it's probably a hell of a lot more efficient to make meat that way than to grow cows for years, resource-wise.

3. Energy, whether in electrical form or used to propel vehicles over land, sea and air.
Nuclear works on the ground until you factor in political issues. Perhaps if you can make thorium reactors and ensure that well-trained staff are at them, no matter where they are, as you can't exactly use the thorium for any weapons without needing other fissile materials at the base of the weapon. Solar... well, it could work (whether on the ground or theoretically in orbit) but it still needs more research. It's still a far sight better than it used to be, but of course it's expensive. Again, however, political and economic issues make this an impossibility in many places.

4. Resources used in base materials.
Hella recycling needed, or some breakthroughs in mining and locating minerals. Or stick an asteroid in orbit and start a crash course in orbital manufacturing. Both could probably be done, honestly.

5. People are idiots.
No. Seriously. People are idiots, and while there are enough that would listen if they were informed, many do not want to listen, let alone the few who go out and look at things and go 'maybe we should do it a little differently'. That's why we're having this tangent in this thread about the economy, and how it works the way it does; that's why we have concerns about the politics. I hate to be cold, but about the only way any of this is going to happen is if we take the approach Koichi Toyama advocates... scrap and scrap... because the necessary changes are so drastic that they very likely cannot work within the current political climate at all. With the way things are right now, unless we can convince everyone to change across the board, and change that drastically, we're going to run ourselves into the ground and there won't be anything left to change.

We need to reassess whether the economy should be dedicated to constant, consistent growth. Sure, growth is good, but if economists whine because the GDP isn't growing when people can remain employed and enjoy the same standard of life for ten years... if that can be done, then there's something wrong with the economists. Is this the case now? Obviously not; we try to keep the economy growing no matter what. It grows, and grows, and then hits a brick wall and crashes. And then it resumes growing until the cycle repeats.
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Re: What good is a used up world?

Post by Bakustra »

J wrote:
Bakustra wrote:When you cash a bond early, you are taking a "loss" because you are giving up the potential for a fully matured bond in exchange for cash now. When you buy bonds, as an individual consumer, you are betting that you won't need the money before the bond matures completely. Therefore, you are taking a slight risk that you will need the money and therefore will have to give up the difference between the matured value and the value when you need the cash. They are practically stable, but there is still a small risk involved. Commensurately, the payoff is smaller.
And you define the potential for this "loss" as a gamble? Jesus.
Yes. It's a small risk, for a small reward. Risks don't have to be anything as major as a economic collapse- opportunity cost works well enough. Bonds are essentially a sure bet, as the risk is infinitesimal and you will get your original money back.
Let's say I pocket $100k on a daytrade. This is $100k which is taken out of the hands of other traders and the company whose share I sold. Unless I can and do make better use of this money the company and those other traders, it's not a gain for the economy. If for example I make $50k from trading BAC shares and use it to buy a new Ford, it's a net gain for the economy. If I take my $2000 profit from trading Caterpillar and go on a WalMart shopping spree, it's arguably a loss for the economy since I'm contributing to and supporting offshored jobs and the destruction of my country's manufacturing base. I spent $2000, most of it ends up in China, that was money which Caterpillar could've put to far more productive use than my WalMart shopping spree.
But you're still contributing to the Chinese economy in that case.
Sure, and if that money had stayed with Caterpillar it could've been used to increase productivity and pay out $10k in additional wages to be blown at Wallyworld to support Chinese industry.
So what's your point? That spending only contributes to the economy if it falls into an ideal range of spending money solely on non-globalized products?
Unless you destroy or otherwise remove the cash from circulation (note that putting it in a bank still contributes to the economy by expanding their ability to make loans) then the money will still contribute to the economy somewhere. It may not contribute in an ideal way, but it doesn't vanish either.
Wrong. This assumes that banks are willing to lend and people are able to borrow. Let's take a look at the Fed's H3 table, specifically, the total reserves of depository institutions. It's increased quite a bit over the past year. However, MZM which is the broad measure for the liquid money supply in the economy has actually declined during the same timeframe. Looks a lot like vanishing money to me.

Image
Wait, you are claiming that people not borrowing during an economic downturn is evidence of banks being some kind of magic money hole? What about people being unwilling to take out major loans during a recession?
So we agree, then.
No, we do not. Your argument is that my purchase of commodity futures contracts is not speculative since I intend to profit on the trade of the underlying item when the contract is due. I'm telling you that this is not the case, and I've explained why this isn't the case in the vast majority of futures contracts which are traded on various exchanges. I have no intention of trading the underlying, I'm trading the futures contract itself, this is a pure speculative play.
No, my point was that it was possible for futures trading to be non-speculative, and you agreed with that, before revealing, inadvertently or not, that you have no desire to partake in any of this investment tomfoolery and preferring sweet commodity speculation.
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Re: What good is a used up world?

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mr friendly guy wrote: Which brings me to my next point. What do people consider a first world lifestyle anyway for an individual or family or 2 kids (the average in Australia is between 2-3). How would you judge it? By GDP (by purchasing power parity) / capita? Or perhaps considering what possessions each person on average owns (which is a bit more easy to relate to than just numbers in the bank account).
Why not judge by material possesions (or expenses)? There are people/families who earn very well, yet live frugally, and inversely as well.
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Re: What good is a used up world?

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Kuroji wrote:
Useful, but for any areas that aren't on the coast it's going to be difficult for them to get clean water piped to them. Not impossible, just difficult. But logistically speaking, I don't see tankers full of fresh water ever being a viable way to solve this problem.
Fortunately looking at the most populous nations, the top few nations China, India, USA, Indonesia, Brazil all have large borders with the ocean, so that accounts for 47.7% of the current world population already. The other couple of populous countries include Russia, Japan, who should have the resources to build them as well.

The problem I think will be in Africa, and I find it hard to imagine desalination plants being built plus the pipes to transport them to inland countries, without some international coordination, for example the World Bank and the United Nations chipping in.
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Re: What good is a used up world?

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[R_H] wrote:
mr friendly guy wrote: Which brings me to my next point. What do people consider a first world lifestyle anyway for an individual or family or 2 kids (the average in Australia is between 2-3). How would you judge it? By GDP (by purchasing power parity) / capita? Or perhaps considering what possessions each person on average owns (which is a bit more easy to relate to than just numbers in the bank account).
Why not judge by material possesions (or expenses)? There are people/families who earn very well, yet live frugally, and inversely as well.
So would a person living in the developed country, who lives relatively frugally (but above the povery line) be considered a first world lifestyle? What about those below the poverty line for that country? I assume not. So now for the interesting thing part. Would a country, lets use China for example. Lets say if economic growth leads to most Chinese citizens living as well as the first example, even though their purchasing power is clearly less, and they aren't considered frugal by Chinese standards, would they be counted as first world standards, or still second world?
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Re: What good is a used up world?

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mr friendly guy wrote:plants being built plus the pipes to transport them to inland countries, without some international coordination, for example the World Bank and the United Nations chipping in.
It doesn't matter who chips in, the political situations in some parts of Africa are way too unstable to expect people to not screw with the pipelines. Things in many places there have a tendency to be powderkegs at the best times, and utterly brutal and inhumane at the worst...
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Re: What good is a used up world?

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mr friendly guy wrote: So would a person living in the developed country, who lives relatively frugally (but above the povery line) be considered a first world lifestyle?
How would you define a first world lifestyle (which the rest of your post depends on)?
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Re: What good is a used up world?

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[R_H] wrote:
mr friendly guy wrote: So would a person living in the developed country, who lives relatively frugally (but above the povery line) be considered a first world lifestyle?
How would you define a first world lifestyle (which the rest of your post depends on)?
I am not quite sure, which was why I threw up the question, given the posts about scarcity with developing nations moving to such a lifestyle and how people won't settle for a second world lifestyle. If there is a large difference even between what is considered first world lifestyle and one of these developing nations reach a status equivalent to the lower end, it obviously will have less strain on the planet compared to if they become American mark II. This line of thought was spawned from the replies Ray got about Chinese people being happy with being second world lifestyle / capita (which I should add given their larger population, even if they only have second world lifestyle doesn't necessarily preclude them from having an overal GDP larger than the US).

However a few things I was considering, which I will throw forward to get others views.

I suppose one of the things required would be the number of calories eaten per day. I don't personally feel that one needs to have that high an average that we get lots of "fatties" as I remember when I was a child that fat kids were few and far between. As a corollary, they would need to be able to have close to the amounts of calories derived from meat the first world consumes as a proportion of total calories consumed.

Another thing would be that the average income would be sufficient for people to live in a home, either via renting or self ownership.

I would also consider adequate transport within a metropolitan area, whether either public or private vehicles to be adequate. Thus they must have the resources to afford the petrol (or electricity if electric cars take off) and the car and the public infrastructure (roads, traffic lights and signs) etc.

I am a bit ambivalent towards needing anything close to UHC, given that America doesn't have one and isn't exactly considered NOT a first world.

In this day and age, I would also consider having a reasonable internet access in metropolitan area and maybe rural area as first world.

I personally don't think you need a flatscreen television or necessarily more than one to count as first world.
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Re: What good is a used up world?

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Fucking Windows 7 and Google Desktop screwed me out of two evenings web time. Oh well.
Bakustra wrote: Fuck you. Fuck you in your eyes, in your mouth, in your nose, and in your ears. Fuck you in your malfunctioning long-term memory. Fuuuuuck yoouuuu.

I was agreeing with you just posts before, and now you presume that I'm disagreeing with you. I will say this: you are defeatist because practically every other post from your fingers (counting from before your sabbatical) consists of "we're all doomed! doomed I tell you!" interspersed with attempts to explain various problems facing the world to people. Your approach is something that I, as somebody concerned about most of these same problems, despise utterly. It would frankly be better for the world if you kept your mouth shut and fingers away from keyboards.

Your approach actively denies that people can do anything to halt the course of various ongoing problems. This is because you claim, "we are doomed, and there is nothing anybody can do". Well, you base this on the apathy of the average person. How do you think the average person will react? They will most likely disregard you, remaining apathetic. How else will changes be made, if the average person is not convinced? (Well, there is always totalitarianism {*snicker*}. Good luck establishing an army of Green Shirts to oppress the average person "for their own good".) How will the average person be convinced, if the only voice telling them about this tells them that they can't do anything about it?
Because they can't. It's just THAT simple, and I speak from experience. If you're referring back to posts before I took a year sabbatical (down to depression from my job and barely making ends meet, so I invite anyone else on this board to come out with this tiresome meme of me ENJOYING the prospect of an even shitter life than I had last year) then you must also know of the ones where I mentioned trying to educate the people in my local parish, prior to the worsening situation and more doomer outlook brought on by 2008, and even before I moved to my present job. I didn't come out with "By the way, oil is running out. It's Mad Max for your kids, sucker!" at the start at all. I was using Campbell, Leggett, Deffeyes and Energy Bulletin pieces on the matter as source material. I talked with family, friends, really anyone who I knew and deemed would actually listen. My parents have always handwaved it off, I never managed to get to do a proper presentation at the village hall (and anyway, I moved not long after) and other people either respond with blank faces or total apathy/incredulity. I've talked to people on the dole when I was working for charity and my ex who is in her third year of physics at the University of Oxford. The former tended to not give a shit, or think me crazy, the latter at least had heard of what I was talking about (she was secretary for the Fairtrade Society at Oxford and a big climate change follower), but, bless her, she trotted out the same "solutions" that the media believe in: hydrogen economy, EVs, biofuels, "we'll find more oil", "technology will save us".

Do you have any idea how soul destroying it is to be Cassandra (but not in the rape way) and have even more intelligent people you respect dismiss any and all claims made? It's not even the bigger problems either, like a potential export pitfall which no one can do anything about. It's things like the idea of oil running out or even harming the economy, those base ideas aren't enough. If you can't understand that oil is finite and the most important commodity on Earth, then how do you go on to tackling the issue? People don't do things until they know why they're doing it, and comprehend it to boot.
There is also the matter of convincing the more informed. Your approach turns people away because of said apocalyptic, fatalistic, outlook. They would normally be willing to hear you out and potentially change their way of life. However, your rhetoric turns them away and they become cynical about your posts, as they become the same thing over and over again. Meanwhile, you have the temerity (though you do not recognize it as such) to bitch about how people just won't listen to you. Well, nobody likes a lecturer, but nobody likes a glum bastard either, and you manage to impressively be both. Now, if you manage to put on a cheery face and make subtle suggestions rather than "a full plate? you're why kids are starving in Africa!" and still get that same response, I understand. However, you are still in a public forum. You are talking to people, making persuasive arguments. I can only recommend, but hopefully I have made myself clear.
Crystal, but you're wrong about my approach (I've only been a real doomer since late 2008 with the credit crunch, and I've never gone as in-depth or as radical in real-life as I have on here, if only because you get absolutely nowhere with endless charts and worst case scenarios). And you're wrong in thinking people can prevent this from happening. It's already too late. If we were going to fully mitigate PO at least, we should have started when Carter was on the throne, several years before I was even born. The reason I see more alarm in the situation now, is because the credit crunch (which I somewhat expected in 2007) and the more up-to-date data on oil production, exports and its alternatives, makes it even less likely that anything but a command economy and a crash in consumption will have an impact. And as we can see, one such crash has already happened as oil took too much of the GDP up. People need to consume, to drive and to use oil to produce any alternatives. How can you switch to a bright, shiny future when no one WANTS to be frugal, nor can one produce a new economy without using oil in the first place?

If you want to be a real doomer, look at the far more self-evident, intuitive and supported theory of climate change, and how even with governments acknowledging it and many optimistic scientists not selling 2012 scenarios as a reason to change our ways, we've still done sweet fuck all to mitigate it. And public opinion, at least over here, is not as pro-climate change science as it was this time last year, for obvious reasons.

You need people to take drastic action now, and stick with it, not asking questions. It's not happening, and you're deluded if you think it will happen so long as an equivalent of the American Dream exists for people to strive for using BAU.
mr friendly guy wrote:I am less worried about energy usage since nuclear can solve that issue (whether ENOUGH countries adopt it is another matter). Even with petrol people have suggested solutions.
Nuclear does nothing to solve the liquid energy crisis. It only helps with baseload power for electricity, of which most nations have adequate amounts of for the time being. Even were it to be used, the lead times, capital/credit costs and requirement to totally replace the motor fleet we have today makes the idea redundant for attacking PO. We're talking about the potential loss of all major exports within the next two decades, and that's assuming fairly steady decline rates geologically speaking. You simply cannot make nuclear, or renewables, dent the market in that time.

Additionally, oil is not used just for energy. It is a major agriculture input, and while you can use Fischer-Tropsch and other techniques for synthetic production of said inputs, they are more expensive and need to be scaled up.

Consider it this way: why do we worry about gold being so rare when there are billions of tonnes in the ocean just waiting to be retrieved, along with other rare metals we could use? The answer is this is an exergy crisis, primarily to do with liquids. So long as we have a main sequence star in the sky, there will never be an energy crisis, just as we will never run out of oil (most will stay in the ground as it'd be cheaper to burn asphalt than dig up some of the worst grades out there). In fact, just this week ConocoPhillips have said they're not investing in any new exploration, finding it easier to turn a profit by consolidating their current business and improving efficiency. An oil company that isn't looking for oil because it's too pricey? Doesn't make sense to most people.
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Re: What good is a used up world?

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Kuroji wrote:Okay. Quick rundown of the problems and possibilities on solving them that I've seen in this thread.

1. Clean water.
Cities are very thirsty creatures, and about the best solution you're going to get without running your natural aquafiers and water reservoirs dry is bringing it in from the coast. Ultimate solution: Desalinization plants, because anything else is going to prove insufficient, until someone invents affordable wind traps a la Dune.
Energy-intensive. Very energy-intensive. Good solution if your whole population lived within easy reach of the coast, and wasn't excessively huge to begin with. It also helps if you've got lots of energy to burn.
2. Sufficient food of quality.
Hydroponics, aeroponics, sustainable farming practices, and if anyone ever figures out a way to do it, cloned meat;
I can't help but notice that you've still failed to demonstrate the scalability of hydroponics or aeroponics. And now you've tossed in cloned meat grown in a vat on top of that.
Beside, it's probably a hell of a lot more efficient to make meat that way than to grow cows for years, resource-wise.
The typical beef cow lives for less than three years before slaughter. It also has a feed conversion of 7:1. The typical broiler chicken reaches market weight in eight weeks, weighs five pounds, and only requires ten pounds of feed to get there. The quickest way to improve the efficiency of meat is to stop raising cattle.
3. Energy, whether in electrical form or used to propel vehicles over land, sea and air.
Nuclear works on the ground until you factor in political issues. Perhaps if you can make thorium reactors and ensure that well-trained staff are at them, no matter where they are, as you can't exactly use the thorium for any weapons without needing other fissile materials at the base of the weapon. Solar... well, it could work (whether on the ground or theoretically in orbit) but it still needs more research. It's still a far sight better than it used to be, but of course it's expensive. Again, however, political and economic issues make this an impossibility in many places.
That's the core criticism against "technology will save us!!!111" Cost. We need a huge investment in nuclear reactors. Huge as in "We should've started this back in the '70s." Photovoltaic solar and the sort of solar using huge mirrors and turbines are also expensive. They may see some savings as economies of scale kick in, but such savings will be limited. We have a fair handle on the theoretical limits on what we can do with photovoltaic materials, and we're already quite close to those limits. The only way to get more from photovoltaics would be to toss them into orbit, but this would require a huge, costly orbital infrastructure.

Technology may save the one or two billion people who survive the eventual population correction. This will be of no consolation whatsoever to the rest.
4. Resources used in base materials.
Hella recycling needed, or some breakthroughs in mining and locating minerals. Or stick an asteroid in orbit and start a crash course in orbital manufacturing. Both could probably be done, honestly.
At enormous cost. You need a lot of heavy lift capacity which just doesn't exist right now. You need long-duration spacecraft which also don't exist right now (to go out to an asteroid of profitable size and move it to a place where you can break it up for its resources and process them for human consumption.) This isn't to say that expanding into the solar system isn't a good idea. It's a good idea for the long-term survival of the species. But it won't save our bacon in the timeframe of our self-perpetrated crisis.
I hate to be cold, but about the only way any of this is going to happen is if we take the approach Koichi Toyama advocates... scrap and scrap... because the necessary changes are so drastic that they very likely cannot work within the current political climate at all. With the way things are right now, unless we can convince everyone to change across the board, and change that drastically, we're going to run ourselves into the ground and there won't be anything left to change.
The frightening thing is that even if humanity stopped being short-sighted and idiotic tomorrow and started working in concert to save ourselves from what we've done to the planet . . . it's already far too late to avoid a painful population and quality-of-life contraction. So it will still suck. However, that does not mean there is no merit in trying to make it suck less.
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