Japan Germany ‘growth’ and percentages. And bailouts

Apples with apples is always good. Most folk don’t ‘get’ percentages, especially in terms of relativity. That has come home to me this last three years, as I’ve tried to get the concept of exponential growth across, and it’s impossibility. When RNZ Business announces daily percentages up and down (of the Dow, for instance) most folk don’t realise that the % quoted is only relative to the last one.

Japan just experienced a drop of staggering proportions – 40% by some accounts. To ‘grow’ from that mark is inevitable (graphs can only go up or down, once they are doing one of those, the other is the only thing they can do. Let me put that simply. When a graph goes down, the only way from there is up. And vice-versa. A bit like a highway – you have to have a left after a right, or you’d go round on circles….

So we crow abour a rise of a % ot two – from 40 down?  That’s apples with truffles.

Then we look at the bailouts underwriting them – this has to be accounted, or the ‘growth’ is meaningless. It’s like raising a mortgage to pay a mortgage, then quoting the paid-off one to ‘prove’ you’re better off. Delusion is the best description of that kind of thinking – cranial bankruptcy the more cynical one.

Folk like me, don’t think there is the stored fossil fuel energy left in the system, to generate the activity to pay for the debt. Meaning the system will crash while in the negative. Global debt-forgiveness is the way they will try, but what that does to society, and values, means it’s all over anyway. Pound of flesh, anyone?

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