Home > Uncategorized > Links: dowries are paid in cash. And disruptive technology.

Links: dowries are paid in cash. And disruptive technology.

  1. Very cool webpage which maps CO2 content of electricity in different European countries in real time (i.e.: German content drops when sun start to shine in Germany), as well as international flows. Blackest country: Poland. Greenest: Norway (hydro), France (nuclear).
  2. I’ve been tweeting a bit with global warming deniers. They are soooooo conservative, at least when it comes to their (lack of) believe in the power of technology. The transition is taking place already. Here, a real life zero emission truck (hydrogen + electricity) which is cheaper, faster and stronger than a diesel truck. Costs of solar and wind continue to plunge. Wind power was so abundant in Germany with Christmas that electricity was free. Decentralised storage has great potential. They don’t want to know.
  3. Is reality starting to look more like neoclassical models? On websites like ‘mechanical Turk’ a total flexible load of work, subdivided in mini tasks, is performed by a total flexible, anonymous labour force. One of these ‘Turkers’ posted the next question on reddit (in Canada, Turkers are paid in amazon gift cards: “Hey guys, Canadian turker here and I just got my first 10 days and now able to take out my earnings ($20). What gift card would be the best to sell in /r/giftcardexchange to get the lowest loss? Also do you guys have any better idea to cash it out with minimal loss aside from gift cards? Thanks! Side question: Does netflix gift card bought in US can be used in canada?”
  4. Demonitisation in India is a disaster, according to this article (based upon careful investigation). Another view however states, invoking Minsky, that credit can cushion the epic liquidity crunch. Recent economic historical findings however indicate that an economy should be seen as a whole bunch of markets and other transactions systems which are interconnected but which also often use their own specialized kind of money and payment system which can’t easily be replaced by other systems. When one carefully reads the positive article this seems to be the case in India, too.

Credit is money. That is why companies don’t need to carry cash everywhere for purchases. Most purchases happen in the form of credit settled through a business process. Even you can buy whatever you can in cash or credit (e.g., credit card, your khata at the kirana store or a village vendor extending credit).

This total money is not assumed to be neutral, as by traditional economists, but has a direct impact on prices and economic production. More new credit generated leads to more demand for goods in the economy and more economic growth and employment — a well-established fact.

But what has this endogenous money/credit got to do with demonetisation? Actually, everything.

Credit is financial money that differentiates black economy from a white/cash white economy. Black economies have very low credit. When was the last time you paid bribe in credit? Or paid dowry in credit? Or bought drugs on credit? You may have bought some regular ration on and off on credit, though.

Hmmm… Agree, but only up to a pont. In the Indian village economy, there is a reason why people hoard cash. It’s wealth. In old Europe, where lots of the economy were almost entirely credit based, it did matter if you were wealthy (as exemplified by your ownership of land, or all kind of gold, silver or pewter objects). Taking away this wealth will create epic economic havoc. The first article states: ‘Another fruit seller mentioned that he had been hit by 17 cancellations of marriage orders in a single month’. This is really the kind of naive shock economics which has disrupted too many lives already. An epic mistake (even though I detest dowries).

  1. January 9, 2017 at 6:11 am

    1. Where one ends up with regard to global warming and climate change depends on where one starts out. Most deniers have not so much made up their own minds as had them made up for them. By the websites they depend on and defend, by Fox “News,” by members of Congress who lie to them consistently. Plus they live in fear. Fear about the changes in the world in which they once felt comfortable and safe. Fear of a first in American history, a black President. Fear of people they consider inferior taking their money and their lives. They live a lonely and fearful life. No room or inclination toward new fangled notions from “liberal” liars about global warming, climate change, and renewable energy.

    2. Flexibility in work and pay is not necessary a neoclassical. It depends on what sort of moral code of duties and obligations encompasses this flexibility. If it’s the one neoclassical economists that each of us is an isolated individual and should not expect help from others, then I’d say your conclusion is correct. If it’s a morality that stresses individual freedom and responsibility within the context of mutual responsibility to care for and help one another, then your conclusion is wrong. If it’s a morality that lays our duties and obligations for all members of the society but doesn’t restrict freedom unless it impedes that norm, then again your conclusion is wrong.

    3. Credit in the west has been around since the Roman Empire. But it was used by socially unacceptable people, such as Jews and Arabs. No respectable Roman would engage in credit. So what is credit and what made it “personal non grata” for Romans. Credit is obligation. No Roman would ever obligate him/herself to anyone. These were the rulers of the world. That’s why the Romans invented coinage. And that’s why they made everyone in their Empire use it. Today we’re not so squeamish about credit. That’s mostly the result of banks controlling the world. Having a value full of green backs or even gold is okay. But what’s better is having literally everyone obligated to you. With such obligations banks and “sort of” banks can dictate to people (rich and poor), to governments, to religions, etc. It’s the obligation that matters; much more than metal or paper money, or even credit cards or trading houses.

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