Thursday, December 18, 2003

That's it my loveliesss... keep snapping up that real estate. The economy's ssstrong, prossspectss are good, there's nothing to lossssse.

I'm still not quite sure where all this money is coming from. Our trade deficit is way out of balance, and now everyone's in huge debt just to prop our economy up. So basically, we buy stuff in, then make money selling it. But that means we have to buy it in the first place, then buy it again, and off all the money going out of people's purses, some goes to the corporates, some goes to investment, e.g. science etc.

So the question is, how long can we sustain a service economy? Making money off ourselves sounds like a great idea in the short term, but I'm still wondering where it leads to in, say, 10 years. Unfortunately (or perhaps fortunately) I'm not really an economist, but I'd like to ask one about all this. Maybe there are equivalents in science - can we see an economy as a simple system based around the conservation of energy? If money is going out of the system (via international trade), then where does it come in? (Perhaps exchange rates help out on this one.)

I see now why we're not joining the Euro any time soon. Our economy will be fucked. Royally. The difference between currencies - i.e. a "strong" pound - is partly what's keeping us from going under... or is it? We can't compete on manufacturing, so once the money goes one way, but the platform's the same, don't we just shaft ourselves?

Dammit, I *really* need an economist.

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