https://abcnews.go.com/International/wireStory/pound-stabilizes-turmoil-continues-uk-economy-90564036

I have this feeling no one really knows how economies work and they just pick from the tree of hope the catch phrases they pray will keep them in power.

In the book replenishing the esrth James belich made the comment that economic booms needs a resource. This sound pretty common sense and so it is. Think of the great cod fisheries or the endless forests of the new world and outside that a resource could be cheap or skilled labour or even the time saved by just in time manufacturing but and there is always a but.

What happens when the resource runs out or competition catches up? the the boom ends. This is the reality of the west.. They have utilised the resources they had and when they could no longer extract compound growth they moved somewhere else. The booms that provided the initial wealth have faded all they have left is debt leverage and then nothing. But they still live in hope that a boom bringing dreams to reality is just around the corner. And all the time the debt grows.

There are people who advocate a steady state economy and this may be what we are approaching but with no way to pay the debt so just a steady decline in wealth.

#economy #finance #money #globalisation