Once again, as we sit twiddling our thumbs waiting for the Federal Reserve non-decision on raters today, we venture into the swamp of robotics as we try to see ahead through the haze; cast by a blizzard of press releases and hype.
What we know at the outset is that the Great Depression was largely caused by economic displacements. Farmers, who raised draft animals, had their livelihoods ripped out from under them by “traction motors” (tractors, we call ’em nowadays). This – coupled with a huge migration into cities and falling commodity prices due to mass production which was coming into its own, combined to totally trash the global economy.
This time around, we are seeing different kinds of migration (gender, illegals, drought-driven) and we’re seeing a different kind of job-minimization occur driven by business process computing and our friendly robotics.
This morning we vision a bit. Then this weekend, we will ponder whether we get the deflationary collapse like the USA Great Depression experience, or whether the passage of TPP by Corporations which are all over it like white on rice will demand “reparations” from debt-stuffed civilian governments that will fire off a Weimar-like hyperinflation.
I think of this as the diabetic economy: Blood sugar too low and you’re dead, blood sugar too high and… Except instead of the sweetness of sugar, we’re dealing with the vinegary aftertaste of excess debt.
All of which leads to the question: So now what?