{"id":32140,"date":"2018-03-09T14:34:14","date_gmt":"2018-03-09T19:34:14","guid":{"rendered":"http:\/\/olduvai.ca\/?p=32140"},"modified":"2018-03-09T14:34:31","modified_gmt":"2018-03-09T19:34:31","slug":"beyond-supply-and-demand-the-dynamic-equilibrium-between-global-thresholds-and-allocations","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=32140","title":{"rendered":"Beyond Supply and Demand: The Dynamic Equilibrium Between Global Thresholds and Allocations"},"content":{"rendered":"<div class=\"post-thumbnail\">\n<header class=\"entry-header\">\n<div class=\"layout-fixed\">\n<h3 class=\"entry-title\"><a href=\"https:\/\/blog.p2pfoundation.net\/beyond-supply-and-demand-the-dynamic-equilibrium-between-global-thresholds-and-allocations\/2018\/03\/09\">Beyond Supply and Demand: The Dynamic Equilibrium Between Global Thresholds and Allocations<\/a><span style=\"color: #333333; font-size: 16px;\">\u00a0<\/span><\/h3>\n<\/div>\n<\/header>\n<\/div>\n<div id=\"primary\" class=\"content-area with-sidebar\">\n<div id=\"content\" class=\"site-content\" role=\"main\">\n<div class=\"layout-fixed\">\n<article id=\"post-70045\" class=\"post-70045 post type-post status-publish format-standard has-post-thumbnail hentry category-building-the-osce category-collective-intelligence category-commons-transition category-economy-and-business category-ethical-economy category-p2p-action-items category-p2p-ecology category-p2p-energy tag-adam-smith tag-biocapacity tag-ecological-thresholds tag-economic-valuation tag-keynes tag-keynesian-economics tag-renewables tag-resource-allocation tag-self-sufficiency tag-supply-and-demand odd\">\n<div class=\"entry-content\">\n<p class=\"selectionShareable\">As a monetary adviser, I spent many years questioning bankers on the authenticity of their balances sheets. What stood out most for me in these discussions was this: the\u00a0<em>social demand<\/em>\u00a0for commodities is often claimed by banks as having a direct link with the\u00a0<em><a href=\"http:\/\/www.sustainablebrands.com\/news_and_views\/new_metrics\/sustainable_brands\/world_business_council_launches_natural_capital_protoc\">ecological supply of resources<\/a><\/em>\u00a0which are extracted, produced and sold as commodities. But this just isn\u2019t true. Bank reserve assets are not discounted to reflect the decline of the world\u2019s non-renewable resources. In fact, as society\u2019s ecological debt continues to mount, no one is actually keeping track.<\/p>\n<p class=\"selectionShareable\">Consider how odd this is: the demand for goods is used as a proxy for the relative accessibility of non-renewable resources \u2014 yet the increasing scarcity of fossil fuels isn\u2019t showing up in the price we pay at the gas pump. Same with\u00a0<a href=\"http:\/\/www.sustainablebrands.com\/news_and_views\/new_metrics\/rylan_dobson\/why_water_scarcity-adjusted_targets_are_not_context-based_wa\">water<\/a>\u00a0and\u00a0<a href=\"http:\/\/www.sustainablebrands.com\/news_and_views\/waste_not\/sustainable_brands\/prosum_urban_mining_tool_maps_critical_raw_materials_eu_\">rare minerals<\/a>, which are not valued according to their\u00a0<a href=\"http:\/\/www.sustainablebrands.com\/news_and_views\/materials_packaging\/sustainable_brands\/cobalt_declines_demand-growth_rises_500_percen\">declining availability<\/a>. Nor does eco-value appear on the spreadsheets of most stock traders, insurance companies or other businesses.<\/p>\n<p class=\"selectionShareable\">What\u2019s causing such rampant misreporting and misallocation? I\u2019ve come to see this now as more a problem of accountability than accounting. Frankly, the challenge is to admit our mistakes and reconceptualize the modern system of\u00a0<a href=\"http:\/\/www.sustainablebrands.com\/news_and_views\/finance_investment\/mark_mcelroy\/why_monetization_should_not_be_used_sustainability_ac\">economic valuation<\/a>, starting with the theory that it\u2019s based on a fundamental law of equilibrium. Take, for example, Adam Smith\u2019s idea that the efforts of individuals in pursuing their own interests naturally benefit society, or the notion that an organic circular flow exists between market prices and people\u2019s incomes. Are these assumptions valid? And what do we mean by economic balance? Is it a principle of physics or biology?<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n<\/article>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Beyond Supply and Demand: The Dynamic Equilibrium Between Global Thresholds and Allocations\u00a0 As a monetary adviser, I spent many years questioning bankers on the authenticity of their balances sheets. What stood out most for me in these discussions was this: the\u00a0social demand\u00a0for commodities is often claimed by banks as having a direct link with the\u00a0ecological [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3,4],"tags":[19195,19193,19194,6413,1427],"class_list":["post-32140","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","category-environment","tag-allocation","tag-dynamic-equilibrium","tag-global-thresholds","tag-p2p","tag-supply-and-demand"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/32140","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=32140"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/32140\/revisions"}],"predecessor-version":[{"id":32142,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/32140\/revisions\/32142"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=32140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=32140"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=32140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}