Reply To: Boron availability

[kieran]

This is how i see things playing out.

If focus fusion or similar works it will lead to a rapid reduction in the cost of energy in all forms. This leads to deflation. What is currently causing inflation is the price of raw materials which is directly linked to oil prices.

The current obsession with trying to control labour prices as a means of controlling inflation, is and in my opinion now and always has been a fallacy. There is at the moment a huge over supply of labour and with all excessively competitive markets is leading to huge inefficiencies. (Don’t believe this try see what happens to a genetic algorithm when the selection is to strong).*

So what do our governments do when confronted with rapid deflation? They will print money. Unfortunately they will ( for flawed ideological reasons give it to the rich in the form of bonds) all this will do is drive up equity prices. The rich don’t generally spend their money they hoard it, this is why they tend to be rich. A bubble will ensue and the within a couple of years collapse.

Faced with mass unemployment ( over supply of labour), asset bubble ( Quantitative easing giving money to the wrong sector of society) and deflation they will have to do what they should have done in the first place and pay the unemployed to work through printing money (Simply paying the unemployed a living wage will still be to politically unacceptable though they will have to do this when true Artificial Intelligence (A.I.) comes along). There is less competition for work more demand for services so life is generally easier for a while until A.I.

If fusion or solar does not succeed in producing cheep energy the cartels that control energy will continue to simply grow richer at every one else expense. When they get too greedy cause a recession approximately every 10 to 20 years until it all runs out.

* What happens is there is loads of unskilled, semi skilled, unproven skill workers chasing too few vacancies for these workers. The employers that have those vacancies and the customers that buy from them and inflict onerous terms on the workers that manage to secure a vacancy. It requires time, finances and the cooperation of an employer to become a highly skilled worker and those workers that do get employed are because of their week bartering position unable to secure this. Hence highly skilled workers are few in number and can charge a hefty premium and incredible inefficient market as highly skill works are much more productive.