{"id":63680,"date":"2022-10-04T06:35:04","date_gmt":"2022-10-04T11:35:04","guid":{"rendered":"https:\/\/olduvai.ca\/?p=63680"},"modified":"2022-10-04T06:35:04","modified_gmt":"2022-10-04T11:35:04","slug":"241-behind-the-crisis","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=63680","title":{"rendered":"#241. Behind the\u00a0crisis"},"content":{"rendered":"<header class=\"entry-header\">\n<h3 class=\"entry-title\"><a href=\"https:\/\/surplusenergyeconomics.wordpress.com\/2022\/09\/29\/241-behind-the-crisis\/\">#241. Behind the\u00a0crisis<\/a><\/h3>\n<div class=\"entry-meta\"><strong>UNCOVERING THE HIDDEN DYNAMIC<\/strong><\/div>\n<\/header>\n<div class=\"entry-content\">\n<p>As you would expect, both the mainstream and the specialist media have been giving us minute-by-minute, blow-by-blow coverage of the financial crisis which began with the British government\u2019s 23<sup>rd<\/sup>\u00a0September \u201cfiscal event\u201d.<\/p>\n<p>Unfortunately, this coverage and analysis is founded on a conventional school of economic thought which insists \u2013 rather, simply\u00a0<em>assumes<\/em>\u00a0\u2013 that all economic events can be explained in terms of money alone.<\/p>\n<p><strong>This assumption is fallacious<\/strong>. The fact of the matter is that we can immerse ourselves entirely in monetary theories and financial analyses until the proverbial \u201ccows come home\u201d without understanding more than the surface manifestations of the underlying situation.<\/p>\n<p>As a corrective, let\u2019s remind ourselves of something that ought to be self-evident. This is that\u00a0<strong>the economy is a system which delivers those\u00a0<em>material<\/em>\u00a0products and services which together constitute prosperity<\/strong>. Money is simply a proxy for these products and services, a means of exchange and distribution which does not,\u00a0<em>of itself<\/em>, determine the availability of this material prosperity.<\/p>\n<p>This \u2018money-only\u2019 fallacy delivers false comfort, in at least two ways.<\/p>\n<p>First, it enables us to explain away the current crisis in terms of idiosyncrasies \u2013 there\u2019s a surface narrative which assures us that, if we can avoid the kind of bungling in which the new British leadership has become enmeshed, we can similarly avoid the kind of crisis now unfolding in the United Kingdom.<\/p>\n<p>We might, indeed, be persuaded that even Britain can find a way out of this crisis through \u2018rationalization\u2019, which, in this case, might mean \u2018finding rational people to manage its economic affairs\u2019.<\/p>\n<p><strong>Now that growth has reversed<\/strong><\/p>\n<p>The second source of false comfort is the mistaken assumption that finding the right blend of fiscal and monetary policies can deliver the nirvana of perpetual growth.<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>#241. Behind the\u00a0crisis UNCOVERING THE HIDDEN DYNAMIC As you would expect, both the mainstream and the specialist media have been giving us minute-by-minute, blow-by-blow coverage of the financial crisis which began with the British government\u2019s 23rd\u00a0September \u201cfiscal event\u201d. Unfortunately, this coverage and analysis is founded on a conventional school of economic thought which insists \u2013 [&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],"tags":[33228,31315],"class_list":["post-63680","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-dr-tim-morgan","tag-surplus-energy-economics"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63680","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=63680"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63680\/revisions"}],"predecessor-version":[{"id":63681,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63680\/revisions\/63681"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=63680"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=63680"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=63680"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}