Interest rates are nonexistant everywhere in world, so as Austrian theory says, bubbles will ensue. What sectors will they form in?And lets leave the US big government deficit spending bubble out as it is obvious already.
Personally, there is a lot of fuss about green energy, green this green that, i think a theres is bubble there.
The government sector.
The fallacies of intellectual communism, a compilation - On the nature of power
In the green sector, not saying other sectors will not have theirs for the government bubble is the biggest (well monetary bubble even bigger), but in the green sector I think it's what's called "Carbon Credit's." It's another derivatives game.
U.S. dollar
At most, I think only 5% of the adult population would need to stop cooperating to have real change.
Right now stocks are a minibubble that keeps inflating despite semibankrupted companies and terrifying economic datas. It could become the next "big" bubble if values keep racing this much in face of a depressed economy. The gap between real world economy and paper economy is widening at an alarming pace.
Personally I do not believe that "green economy" will become so important as to generate a bubble: the USA are broke and Europe isn't too far behind. While politicians and elegant leftists have green fantasies they salivate to impose on the rest of the world (as long as they can have their luxury cars, enormous apartments and expensive wardrobes) the green revolution will soon crash land simply because we won't be able to afford it. Mises hit it right on the head when he said that only a very rich society can afford the luxury of thinking about the enviroment. Are we still rich enough to initiate a green revolution?
Finally while the Austrians rightly point out this "boom and burst" cycle there's another thing to consider: governments everywhere are spending like there's no tomorrow. They are using every instrument they have available: taxation, debt and inflation and the real economy, despite all their idiotic gimmicks, does not respond as expected. They are running out of options and they are running out of money. Will big government be the next true bubble?
Answer: no, because people are too stupid to let it fail. if you think the recent assorted bailouts robbed you wait until big government will have to pay to save itself.
Here's more on the carbon credit.
There's already been tens of billions of dollars put into this empty derivative scheme. The UN, EU, Kyoto Protocol, Western countries, and third world countries are part of this big loop derivative game. It's huge and has the most powerful Statist forces pushing for it to work (Note the table I attached at the bottom found at that link I gave). It's going to be horrible for a lot of countries when this bursts. It's tiny still, but is not going away any time soon unless some of the bigger bubbles burst and end the statist games (monetary bubble or the U.S. government bubble). And it's a growing bubble not a bubble about to break anytime soon.
Quote from that article I linked:
"The UN carbon off-setting scheme is filled with similar examples of companies with poor environmental and human rights records being financially rewarded. As you dig below the surface it would appear that the UN programme – with backing and finance from Britain – is as polluted as the questionable companies it chooses so generously to reward. In the middle of the City of London is a large anonymous-looking building, home to the European Climate Exchange (ECX). About 98 per cent of the carbon-emissions trading in Europe is done in this office, with more than 25 million tons of carbon traded daily. Last year this market was worth £80 billion worldwide, and it’s set to grow to £97 billion this year, despite the recession."
Dollar and Web "2.0".
nandnor: Interest rates are nonexistant everywhere in world, so as Austrian theory says, bubbles will ensue. What sectors will they form in?And lets leave the US big government deficit spending bubble out as it is obvious already. Personally, there is a lot of fuss about green energy, green this green that, i think a theres is bubble there.
"WASHINGTON—A panel of top business leaders testified before Congress about the worsening recession Monday, demanding the government provide Americans with a new irresponsible and largely illusory economic bubble in which to invest."
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