Comment on On the cusp of collapse: complexity, energy, and the globalised economy by Floro

Insightful, but something crucial is missing in the equation--the impact of climate change. If we consider the interactions and feedback mechanisms of peak oil + financial crisis + climate change which constitute the global capitalist system, the total impact of economic decline becomes more catastrophic. Minqi Li, in his The Rise of China and Demise of the Capitalist World Economy (Pluto Press, 2009) does precisely this more comprehensive analysis--and he predicts a likely collapse by 2050. Richard Heinberg, in The End of Growth, also analyses the total impact of the triple crunch of peak oil, climate change and financial crisis, although he thinks that we still have time to turn things around and, if we do the right things, avert a collapse.

Comment on On the cusp of collapse: complexity, energy, and the globalised economy by Iaato

Very, very nice summary, sir. Another book for my wish list, and subscription for my Google Reader. The shorter version would be the proposed fifth law of thermodynamics: "You shorten the cumulative length of the game the more you steal." In other words, the energy quality factor increases hierarchically as an increase in Transformity. "Flows of energy develop hierarchical webs in which inflowing energies interact and are transformed by work processes into energy forms of higher quality that feedback amplifier actions, helping to maximize the power of the system" (Odum, 1994, p. 251). Anyone interested in these kinds of ideas can come to Florida in January to talk about them. I am trying to collect those who view the world through an energetic lens. http://www.emergysystems.org/conference7.php

Comment on On the cusp of collapse: complexity, energy, and the globalised economy by Hugo Heden

Nit-pick: The economic historian Niall Ferguson argued that US fiscal deficits could lead at some point in time to a rapid collapse in the United States economy, noting “most imperial falls are associated with fiscal crisis”. [25] Such a crisis would drag down every other economy, including those of China and Saudi Arabia. Note though that the difference between US and Greece is humongous in this regard. The US actually can't possibly be forced to default on payments in its own currency (although it can choose to do so for political reasons) as there it has sovereign control the currency in question. Greece on the other hand can indeed default. It has no such control over the currency, and therefore works more like a household or a firm. http://moslereconomics.com/2011/08/15/mmt-to-ryan-apologize-now-about-the-us-being-the-next-greece/ http://www.creditwritedowns.com/2010/05/mmt-yes-virginia-there-is-a-difference-between-greece-and-the-us.html http://mikenormaneconomics.blogspot.com/2011/07/warren-mosler-so-please-dont-take-away.html

On the cusp of collapse: complexity, energy, and the globalised economy

By David Korowicz, from Fleeing Vesuvius. The systems on which we rely for our financial transactions, food, fuel and livelihoods are so inter-dependent that they are better regarded as facets of a single global system. Maintaining and operating this global system requires a lot of energy and, because the fixed costs of operating it are high, it is only cost-effective if it is run at near full capacity. As a result, if its throughput falls because less energy is available, it does not contract in a gentle, controllable manner. Instead it is subject to catastrophic collapse.

Economics is not a social science

In this article Brian Davey explains the rationale for setting up a group called "Cafe Economique" in Nottingham. Following a similar group in Leeds a Nottingham group has been set up, one of whose aims is to give non-economists the confidence to participate in economic discussions. It is high time that non-economists feel able to challenge the baloney that most economists preach and are armed with the ideas that will allow them to do so. In this piece, Brian attacks the status claim that economics makes when it describes itself as a "social science".