Washington Babylon — July 28, 2010, 8:55 am

Cheery Economic News to Get Your Week Started

I missed this when it was published a few days ago. Worth a read.

From James Kuntsler:

I visited the Slate Political Gabfest podcast yesterday. These otherwise excellent, entertaining, highly educated folk (David Plotz, Emily Bazelon, and Daniel Gross, in for vacationing John Dickerson) were discussing the ramifications of the economic situation on the upcoming elections. They were quite clear about not being able to articulate the nature of this economic situation, “…this recession, or whatever you want to call it…” in Ms. Bazelon’s words. What’s the point of sending these people to Ivy League colleges if they can’t make sense of their world.

Let’s call this whatever-you-want-to-call-it a compressive deflationary contraction, because that’s exactly what it is, an accelerating systemic collapse of activity due to over-investments in hyper-complexity (thank you John Tainter). A number of things are going on in our society that can be described with precision. We’ve generated too many future claims on wealth that does not exist and has poor prospects of ever being generated. That’s what unpayable debt is. We have such a mighty mountain of it that the Federal Reserve can “create” new digital dollars until the cows come home (and learn how to play chamber music), but they will never create enough new money to outpace the disappearance of existing notional money in the form of welshed-on loans. Hence, money will continue to disappear out of the economic system indefinitely, citizens will grow poorer steadily, companies will go out of business, and governments at all levels will not have money to do what they have been organized to do.

Share
Single Page

More from Ken Silverstein:

From the November 2013 issue

Dirty South

The foul legacy of Louisiana oil

Perspective October 23, 2013, 8:00 am

On Brining and Dining

How pro-oil Louisiana politicians have shaped American environmental policy

Postcard October 16, 2013, 8:00 am

The Most Cajun Place on Earth

A trip to one of the properties at issue in Louisiana’s oil-pollution lawsuits 

Get access to 165 years of
Harper’s for only $45.99

United States Canada

CATEGORIES

THE CURRENT ISSUE

August 2015

In the Shadow of the Storm

= Subscribers only.
Sign in here.
Subscribe here.

Measure for Measure

= Subscribers only.
Sign in here.
Subscribe here.

The Trouble with Israel

= Subscribers only.
Sign in here.
Subscribe here.

A Camera on Every Cop

= Subscribers only.
Sign in here.
Subscribe here.

view Table Content

FEATURED ON HARPERS.ORG

Post
“The campaign music stopped. Hundreds of people, their faces now warped by the dread of a third bomb, began running for cover.”
Photograph © Guy Martin/Panos.
Article
Part Neither, Part Both·

= Subscribers only.
Sign in here.
Subscribe here.

“Eight months pregnant I told an old woman sitting beside me on the bus that the egg that hatched my baby came from my wife’s ovaries. I didn’t know how the old woman would take it; one can never know. She was delighted: That’s like a fairy tale!”
Mother with Children, by Gustav Klimt © akg-images
Article
What Recovery?·

= Subscribers only.
Sign in here.
Subscribe here.

“Between 2007 and 2010, Albany’s poverty rate jumped 12 points, to a record high of 39.9 percent. More than two thirds of Albany’s 76,000 residents are black, and since 2010, their poverty rate has climbed even higher, to nearly 42 percent.”
Photograph by Will Steacy
Article
Rag Time·

= Subscribers only.
Sign in here.
Subscribe here.

From a May 23 commencement address delivered at Hofstra University. Doctorow died on Tuesday. He was 84.
“We are a deeply divided nation in danger of undergoing a profound change for the worse.”
Photograph by Giuseppe Giglia
Article
The Trouble with Israel·

= Subscribers only.
Sign in here.
Subscribe here.

“We think we are the only people in the world who live with threat, but we have to work with regional leaders who will work with us. Bibi is taking the country into unprecedented international isolation.”
Photograph by Adam Golfer

Ratio of money spent by Britons on prostitution to that spent on hairdressing:

1:1

A German scientist was testing an anti-stupidity pill.

A Twitter spokesperson conceded that a “Frat House”–themed office party “was in poor taste at best.”

Subscribe to the Weekly Review newsletter. Don’t worry, we won’t sell your email address!

HARPER’S FINEST

Subways Are for Sleeping

By

“Shelby is waiting for something. He himself does not know what it is. When it comes he will either go back into the world from which he came, or sink out of sight in the morass of alcoholism or despair that has engulfed other vagrants.”

Subscribe Today