3
Aug

The Economics of Entropy

   Posted by: admin   in Economic Collapse

Another excellent essay by John Michael Greer to put some perspective on the role of entropy in the large scheme of things.  Read full article at The Economics of Entropy.  Here is an extract.

“I’ve come to think of inflation as the primary way that the tertiary economy resolves the distortions caused by the mismatch between the limitless expansion of the tertiary economy and the hard limits ecology and entropy place on the primary and secondary economies. When the amount of paper wealth in the tertiary economy outstrips the production of actual, nonfinancial goods and services in the other two economies, inflation balances the books by making money lose part of its value. I suspect – though it would take a good econometrician to put this to the test – that in the long run, the paper value lost to inflation equals the paper value manufactured by interest on money, once the figures are adjusted for actual increases or decreases in the production of goods and services.”

This entry was posted on Monday, August 3rd, 2009 at 10:46 pm and is filed under Economic Collapse. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One comment

Swapnil Shelar
 1 

Well linked to the long run –

that in the long run, the paper value lost to inflation equals the paper value manufactured by interest on money…………. like to add one more point that is : – after full employment phenomenon.

March 14th, 2010 at 4:07 pm

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