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"Fast Crash" vs. "Slow Crash"?

General discussions of the systemic, societal and civilisational effects of depletion.

Re: How Do You Define "Fast Crash" vs. "Slow Crash"?

Unread postby peripato » Mon 05 Sep 2011, 07:45:37

Daniel_Plainview wrote:
dolanbaker wrote:I think that the economy is in for a fast crash as it's becoming increasingly clear that infinite growth is no longer sustainable and the debts that future growth was supposed to deal with, will never be repaid.


The only thing preventing a "fast crash" is the ability of governments to issue more debt and print more money. But this short-term fix merely papers over the festering, underlying problems ... and it ignores PO. Meanwhile, most sovereigns are now past the breaking point in terms of soaking up more debt; so when the next global systemic crisis hits, one of two outcomes are possible: (1) fast crash; or (2) sovereigns begin printing like mad as they bailout the banks and other TBTF institutions.

But if the printing presses are switched to turbo, then the prices for commodities (especially oil and food) will skyrocket ... which will also end in a fast crash.

Absent a miraculous new energy source, I don't see any plausible way around a fast-crash scenario.

I agree. The longer the crash is delayed, the worse it will be. Each day there are more people and things being supported by a dwindling, irreplaceable environmental and resource base than ever before.
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Re: How Do You Define "Fast Crash" vs. "Slow Crash"?

Unread postby Cloud9 » Mon 05 Sep 2011, 08:29:14

It depends on where you are in your life cycle. I would prefer that the price of bread go to fifty dollars a loaf over a decade as opposed to a fortnight. The longer things hold together the better opportunity for some of the boomers and all of the greatest generation to check out in relative comfort.

Those that long for the mad max scenario are like the kids in the back seat. No we are not there yet and when we get there life for a lot of us will become brutish and short.

Case in point: My wife was cut at work. The wound was treated at a workman’s comp clinic. The infection she picked up exploded and within 72 hours the infection nearly killed her. I rushed her back to the hospital and they put her on antibiotic I.V. s for 36 hours. She is recovering. Without that intervention I would be visiting her grave site this morning.

She is not a useless eater that so many of you fantasize about. She is a highly skilled professional. I and the world would have been diminished without her.
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Re: How Do You Define "Fast Crash" vs. "Slow Crash"?

Unread postby dolanbaker » Mon 05 Sep 2011, 08:49:02

I certainly don't see a "max max" scenario, but I do expect to see an economic meltdown which will collapse the pyramid system that has been built up over the last century.

Chances are, it will have a limited affect on day to day living for the majority of people, just that they'll have to kiss their savings goodby as hyperinflation wipes them out or they are written down by a banking collapse.

Most of the economy will continue as before, the lights will stay on the trains etc will still run just the banking and financial sectors will be severly affected as well as theeir employees.
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Planned obsolescence, one of the largest contributors to the man made element of climate change, but the one least discussed: dolanbaker
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Re: How Do You Define "Fast Crash" vs. "Slow Crash"?

Unread postby TreeFarmer » Mon 05 Sep 2011, 08:59:57

diemos wrote:In the US the slow crash has been going on since the first oil shock.

The peak of US prosperity came in 1968. In 1968 a man with a high school education could get a job on the assembly line and make enough money to support a stay at home wife and children, own a home, own a car, have a decent retirement.

Those days are long gone.


I think you are pretty much on the money with this. If you are off, it is that the slow crash started in the early 70's with the first oil shock after we started to import oil.

Where we are at now is near the boundry between slow and fast crash. We've done 40 years of debt accumulation to give false prosperity and keep the slow crash slow.

Image

That graph shows the growth in both public and private debt combined. We've really piled it on with government debt being the lesser problem even though it gets the most attention. We are at debt saturation where we as an economy can't service any more debt even with ultra-low interest rates. Once the ponzi scheme we've ran starts to fall apart, it will fall apart quickly.

Peace.
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Re: How Do You Define "Fast Crash" vs. "Slow Crash"?

Unread postby nobodypanic » Mon 05 Sep 2011, 09:13:13

Daniel_Plainview wrote:
dolanbaker wrote:I think that the economy is in for a fast crash as it's becoming increasingly clear that infinite growth is no longer sustainable and the debts that future growth was supposed to deal with, will never be repaid.


The only thing preventing a "fast crash" is the ability of governments to issue more debt and print more money. But this short-term fix merely papers over the festering, underlying problems ... and it ignores PO. Meanwhile, most sovereigns are now past the breaking point in terms of soaking up more debt; so when the next global systemic crisis hits, one of two outcomes are possible: (1) fast crash; or (2) sovereigns begin printing like mad as they bailout the banks and other TBTF institutions.

But if the printing presses are switched to turbo, then the prices for commodities (especially oil and food) will skyrocket ... which will also end in a fast crash.

Absent a miraculous new energy source, I don't see any plausible way around a fast-crash scenario.

so you admit that keynesian measures are the only thing keeping the market system afloat.

this obsession w/inflation absent any sort of class calculation seems very strange to me. what inflation, or even hyper-inflation will do is continue market-rationing: those that can afford, will continue to have access to resources, while those that cannot, will not.

the alternative that is generally offered is, of course, stop printing! but then the whole thing will collapse rather quickly. however, even discounting that, the market rationing will still remain, and most of us will be priced out anyway as things worsen.
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Re: How Do You Define "Fast Crash" vs. "Slow Crash"?

Unread postby Daniel_Plainview » Mon 05 Sep 2011, 09:18:39

nobodypanic wrote:so you admit that keynesian measures are the only thing keeping the market system afloat.

Fiscal policy (deficit spending) and monetary policy (QE, ZIRP, debt monetization, money printing) are the only things keeping this teetering house-of-cards from imploding.

nobodypanic wrote:the alternative that is generally offered is, of course, stop printing! but then the whole thing will collapse rather quickly. however, even discounting that, the market rationing will still remain, and most of us will be priced out anyway as things worsen.


Again, excessive printing will lead to runaway commodity prices ... which will lead to a fast crash.
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Re: How Do You Define "Fast Crash" vs. "Slow Crash"?

Unread postby nobodypanic » Mon 05 Sep 2011, 09:30:59

Daniel_Plainview wrote:
nobodypanic wrote:so you admit that keynesian measures are the only thing keeping the market system afloat.

Fiscal policy (deficit spending) and monetary policy (QE, ZIRP, debt monetization, money printing) are the only things keeping this teetering house-of-cards from imploding.

right. so the only thing keeping the crash slow, is the above. and when it is removed... kaboom.

Daniel_Plainview wrote:
nobodypanic wrote:the alternative that is generally offered is, of course, stop printing! but then the whole thing will collapse rather quickly. however, even discounting that, the market rationing will still remain, and most of us will be priced out anyway as things worsen.


Again, excessive printing will lead to runaway commodity prices ... which will lead to a fast crash.

but your first statement implies that the crash is being held off by such measures. if the crash is being held in abeyance, then it isn't a fast crash but a slow one, or at least a slower one....
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Re: How Do You Define "Fast Crash" vs. "Slow Crash"?

Unread postby Daniel_Plainview » Mon 05 Sep 2011, 09:43:56

nobodypanic wrote:
Daniel_Plainview wrote:
nobodypanic wrote:the alternative that is generally offered is, of course, stop printing! but then the whole thing will collapse rather quickly. however, even discounting that, the market rationing will still remain, and most of us will be priced out anyway as things worsen.


Again, excessive printing will lead to runaway commodity prices ... which will lead to a fast crash.

but your first statement implies that the crash is being held off by such measures. if the crash is being held in abeyance, then it isn't a fast crash but a slow one, or at least a slower one....


Yes, we are currently in a "slow crash" for precisely two reasons: (1) the various sovereigns are maxing out on fiscal stimulus and monetary life-support; when these stimulus measures end, then KABOOM; and (2) the various sovereigns are actively lying to their citizens by promulgating massaged data and by concealing the true gravity of the current plight (including the reality of PO); if the true reality were revealed, stock markets would collapse and bank balance sheets would implode ... = KABOOM.

Thus, the sovereigns' artificial fiscal/monetary legerdemain combined with their active deception and concealment are the only things keeping this house-of-cards from collapsing.

Is this a good thing? Is this justified in order to maintain BAU?

I believe that it's a very bad thing for obvious reasons.
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Re: How Do You Define "Fast Crash" vs. "Slow Crash"?

Unread postby nobodypanic » Mon 05 Sep 2011, 10:05:38

Daniel_Plainview wrote:
Is this a good thing? Is this justified in order to maintain BAU?

i think we can both agree here.

the problem is that we're likely to have very different ideas as to what the alternative to BAU ought to be. :wink:
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Re: How Do You Define "Fast Crash" vs. "Slow Crash"?

Unread postby AgentR11 » Mon 05 Sep 2011, 11:15:00

Cloud9 wrote:Case in point: My wife was cut at work. The wound was treated at a workman’s comp clinic. The infection she picked up exploded and within 72 hours the infection nearly killed her. I rushed her back to the hospital and they put her on antibiotic I.V. s for 36 hours. She is recovering. Without that intervention I would be visiting her grave site this morning.


My sympathies for the close call. 72 hours is way to long though. If you see lines, elevated temperature, leakage, or swelling, you get in the car and GO NOW. It can not wait. If the doc says "no biggy", go to another doc until you get one with a brain.
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Re: How Do You Define "Fast Crash" vs. "Slow Crash"?

Unread postby Cloud9 » Mon 05 Sep 2011, 11:25:49

I agree, we should have gone back earlier. The wound treatment physician had prescribed an antibiotic. When we called her and told her about the swelling, she said take the full course and then come back and see her. My wife took the medication and went back to work. She is too stoic for her own good.
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Re: How Do You Define "Fast Crash" vs. "Slow Crash"?

Unread postby Pretorian » Mon 05 Sep 2011, 11:34:22

Cloud9 wrote:She is not a useless eater that so many of you fantasize about. She is a highly skilled professional. I and the world would have been diminished without her.



I'm glad you didn't have to mourn, but may I ask where in your opinion lays a difference between a useless eater and a highly skilled professional?
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Re: How Do You Define "Fast Crash" vs. "Slow Crash"?

Unread postby AdTheNad » Mon 05 Sep 2011, 13:33:34

Pretorian wrote:I'm glad you didn't have to mourn, but may I ask where in your opinion lays a difference between a useless eater and a highly skilled professional?

Since we're being frank, do you consider yourself a useless eater?
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Re: How Do You Define "Fast Crash" vs. "Slow Crash"?

Unread postby Pretorian » Mon 05 Sep 2011, 17:05:17

AdTheNad wrote:
Pretorian wrote:I'm glad you didn't have to mourn, but may I ask where in your opinion lays a difference between a useless eater and a highly skilled professional?

Since we're being frank, do you consider yourself a useless eater?


I personally consider myself to be the center of the Universe; which is true considering the distance between me and the borders of the Universe. So, obviously I do not consider myself to be a useless eater since the Universe itself is nothing but my personal aquarium of sorts which was given to me so I can pursue my happiness, and as soon as I die, the Universe will cease to exist. On the other hand, you or some other bystander might find me to be a useless eater, and that would not upset or bother me at all. Which is why I find it to be amusing when people fret so much even here, on more or less anonymous forum when labeled " a useless eater" while chances are 10 to 1 that it's true.
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Re: How Do You Define "Fast Crash" vs. "Slow Crash"?

Unread postby basil_hayden » Mon 05 Sep 2011, 17:41:41

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