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Comment: Re: The federal deficit this year is $550 billion (Score 1) 126

A national credit limit of around 40% of GDP should be plenty to cover short to medium term shortfalls and entrepreneur activity. That would include all household, business and government debts. Why have we allowed the banking sector to convince us they are essential for the functioning of every part of the economy? They have a perverse incentive to encourage us to borrow, and over the last 50 years we've bought into their propaganda. Take away all of the interest payments we're currently making and our economy has a chance to thrive.

Comment: Re:The federal deficit this year is $550 billion (Score 1) 126

Where did the majority of your spending money begin its life? Bank loans. Remember that massive issue the banking sector had recently?

We need to get our economy off credit. We need to stop borrowing against every security we can find. Either we reduce our debts voluntarily, or we go bankrupt. Either way, we will reduce our debt level over the next 5-20 years. This is going to remove money from circulation. If the government runs a surplus, this will also remove money from circulation. If we stop deficit spending the economy will shrink and may falter.

Back in the 30's we were facing a similar (but much smaller) debt problem. The "new deal" in 1933(-ish) was a program of government spending that helped to reduce the impact of the Depression. When spending was cut in 1937, the economy dipped again. While the level of debt continued to drop, what finally eliminated the remaining debt was the massive spending and manufacturing to fight WWII.

Government deficit spending isn't the problem. It's the only thing that can save us from ruin as we inevitably reduce our debts.

Comment: Re:No signup without a Google Account? (Score 1) 167

by complete loony (#47684397) Attached to: Knocking Down the Great Firewall of China

I've talked with the developers before at conferences. They were (and probably still are...) using google contacts and messaging for the initial handshake in establishing connections. That may change in future.

They also weren't doing any kind of onion routing. So if they get big enough to be noticed, passive network monitoring may reveal the very social graph that lantern depends on.

Comment: Re:What? (Score 1) 393

by complete loony (#47659399) Attached to: 3 Congressmen Trying To Tie Up SpaceX

... the government doesn't create wealth.

Only if you assume;

“A network of intergenerational transfers makes the typical person a part of an extended family that goes on indefinitely. In this setting, households capitalise the entire array of expected future taxes, and thereby plan effectively with an infinite horizon” Robert Barro

When you actually dig into the assumptions of economic theories like that, they usually turn out to be completely absurd. Of course governments can create wealth. Running a deficit creates both income and money for the rest of the economy.

Banks have the same effect when they issue loans. But they can't do that forever, which is why we're having so much trouble returning the economy to "normal".

Comment: Re:Wouldn't electric cars have the opposite effect (Score 4, Informative) 502

In Australia ATM, a dodgy deal with the monopoly owners of the grid's "poles and wires" has enabled and encouraged a massive over investment. Causing prices to rise for just about everyone. At the same time, in response to recent economic woes, the government was offering large subsidies to residential investment in solar panels.

As I travel around our suburbs now, solar is everywhere. And there is actually talk about the grid going into a death spiral. Their customers are reacting to rising prices by installing more solar arrays, even though the government subsidies have ended. There's a good chance that some of the over investment in the grid will never be needed at all.

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