This is Venezuelan

There really was a Venezuelan minister of finance who said that inflation was nothing to do with money, it was just capitalists raising prices.

Richard Kirby says:
October 20 2021 at 2:10 pm
I just read an article in the Evening Standard that reports that “Banks say financing loans is already more expensive due to the City expectations that rates are going up”.

This is puzzling, since as we know from the explainer on the Bank of England website, commercial banks create the money for loans and mortgages out of thin air by pressing a few keys on a computer, so why do they think they need to look for financing?

Reply
Richard Murphy says:
October 20 2021 at 4:04 pm
They don’t

They have cash coming out of their ears

And they create all they lend

But they also want to profit out of any opportunity

17 thoughts on “This is Venezuelan”

  1. OT but I’ve been trying to make sense of this load of… one could easily call it Richie bollocks.

    https://www.telegraph.co.uk/business/2021/10/20/technology-saves-us-oxford-sees-26-trillion-gain-net-zero/

    Well yes. If we paid a quarter of the word’s population to dig holes. And paid another quarter to fill them in again. No doubt there’d be Oxford* mathematicians telling us that we’d all got 26 trillion better off.
    It’s not to ague that there aren’t benefits to technological change. But only when that technological change results in something being done better or cheaper than what was being done before. Forcing people to change before it’s better or cheaper makes us poorer. And at the rate these idiots are going the costs will make 26 trillion look like chicken feed. They may even make the world so poor it be unable to adopt the cheaper & better technology.

    *There really is no other solution but bombing, bulldozing & sowing the ground with nuclear waste. And then turning our attention to Cambridge.

  2. The base idea isn’t silly tho’. If – note the *if* – renewables keep going down in price then when they become cheap enough using them makes us richer. All fine with that so far.

    The error is in then using this as an argument to accelerate adoption. For of course it’s the opposite. If renewables keep getting cheaper then it’s cheaper to install them next year than this and so on. So it’s an argument for delaying adoption, not accelerating.

  3. Exactly Tim. And there’s a rate of forced acceleration where you run out of wealth before you can start benefiting from the new technology. So you never actually get there. You just end up a lot poorer. You could even set yourself on a path where the previous tech becomes unaffordable. It’s a path leads back to chipping rocks & hunting & gathering.

  4. Did it happen to say just who is going to get the 26 trillion? Cos all I can see is cost to me and all the other ordinary punters. We don’t look like being better off at all, even if the magic windmills do get cheap.

  5. It is very serious. If they shut down the oil & gas industries, the coal mining, you might never be able to get them back again. It needed a certain level of capability to exploit the resources the first time round. But all the low hanging fruit went decades ago. You have to go straight to deep offshore drilling in the more obscure parts of the world. Deep coal mines or massive open cast. So if you don’t have the capability required, you’re locked away from them.

  6. Exactly Tim. And there’s a rate of forced acceleration where you run out of wealth before you can start benefiting from the new technology. So you never actually get there

    There’ll be a new scam come along well before us ordinary folks see any benefits – TPTB will need to extract their wealth somehow.

  7. It’s an ongoing scam, Jimmers. This is just the latest phase. It’s number of people riding on it gets larger & larger. Back when we had kings & barons it was relatively small. It wasn’t too bad in the C19th. Somewhere in the mid C20th it really took off. We’re getting to the point where there’s more people riding on the scam than the people being scammed. It’ll end in tears. Any luck.

  8. “more people riding on the scam than the people being scammed.”
    Human nature is not nice. There will be a large majority of losers, but those losers who lose less will probably put up with it.

  9. BiS

    Last time I checked, the number of people employed in France for some branch or another of ‘the state’ was more than 50% of the folk employed..

  10. It turns out that if you manufacture in billions, rather than millions, your product gets cheaper. Who knew? But the real-world performance of PV cells and Li-ion batteries has hardly changed at all, so the former can’t repay the energy consumed in manufacture, unless installed near enough to the equator.

  11. I read somewhere that you need around 450 times the area covered with solar panels to produce the same amount of energy from as from a nuclear power plant.

    Destroying the environment to ‘save the climate’.

  12. The Original Jonathan

    I love how they lead on “eliminate the word “cost” from activity X, the relevant concept is how much we gain.”

    Yay!!!! Eliminate the £3000 cost of those Northern Rock shares, I gained £250!!!!!!!!!!!! £250 from nothing!!!!!!!!!!!!!!!!!!!!!!!!!

  13. BinSpain has identified the real problem. Economies cannot simply be shut off and on like a switch. The Western world is now seeing that with the problems in restarting economies after the terrible government decisions to respond to Covid. And that is with perhaps a third of the economies shutdown, locked down or severely impacted by the wrong-headed policies. Now, imagine shutting down the energy sectors and all extractive activities until someone realizes we are heading into a suicide pact. How do you restart?

  14. Even if they reopened the UK coal mines, how many people would be prepared to go down ‘t pit? Would Health and Safety allow them to work there? What would Arthur Scargill have to say?

  15. The Original Jonathan

    Repeated miners’ strikes show how hard it is to re-open a mine after it’s been left unworked for any period of time. And while we have “300 years of coal” (quoting my 1982 school chemistry teacher) almost all of it is in deep seams that would have to be worked remotely with machines. It would never be a major job creator, just the same way steel has gone from mass-job to few-jobs mass-value.

    <hobby horse>Sheffield makes more steel now…. etc.</hobby horse>

  16. Yeah Jonathon, I remember reading about a proposal to gasify the coal under the Firth of Forth.

    I understand the CO2 produced by partially burning the stuff underground ensured that this didn’t happen.

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