Economic debate turns like loose screw

Nobel prize winner in economics Paul Krugman published an article entitled “Money for nothing” in yesterday’s New York Times.

It’s well written, sounds superificially convincing, but like other opinions on what to do with the economy is fraught with major contradictions.

Taking a few minutes to read it, find the fallacies and have a look through the comments is worth the effort:

Many of the comments are almost poignant in their desperation.

Here is an example:

“Finally the lights came on for me. The reason that we need to worry about debt and get into austerity mode is because the “job creators” have no intention of creating jobs. Our economy has become an artificial world that only involves big player “investors.” They want an already broke populace to pay the bills of the investor class. Were the economy to actually get back to say, 60 years ago with nearly full employment, tax revenues would skyrocket solving the deficit problem. What the top tier wants is a slave class, perhaps in China, that will provide all the nuts and bolts so that they can continue their addictions to Gucci stuff and multi-thousand square foot homes so they can feel all that addictive power”. (comment posted on TNYT web site by Suzanne Wheat. It received a string of approvals).

Most comments illustrate that nobody is able to come up with anything resembling a coherent solution to the global economic challenge.

And we know why: because the problem is much broader than just economic, it is societal, environmental, demographic…The results of the materialist world view are coming home to roost.

Accelerating change on the planet is vibrational. Energies are reaching high noon at a spiritual level. Way above the head of any Nobel prize winner, particularly in a fake science like economics.

Fear not, calmly keep your eyes wide open.



Copyright © Leo Foresta 2012


Once in a century, or unprecedented ?

Commenting today on the latest UK economic figures showing a deepening recession, Business Secretary Vince Cable said that the crisis was a “once-in-a-century phenomenon”.

Dramatic as it sounds, this remark understates the situation.

The whole of mankind, and not only the UK, is moving towards its most important rendez-vous with history.  The crisis is wide and global: financial and economic, environmental, demographic, societal. No country, no group, will escape it.

A system of thought and a way of life are coming to a dead end. Materialists still deny it and desperately try to keep their confetti cloud in the air.

But credibility has almost completed fizzled out of their pathetic propaganda.

Fear not, prepare spiritually for unseen turbulence.



Copyright © Leo Foresta 2012

Debts, jobs, nature

As the materialist system is nearing meltdown, a crystal clear understanding of what is presently going on in the world is extremely useful to anyone intent on full spiritual transformation.

Let’s start with debts, currently public obsession number one. Not without reasons.

Debts are the flip side of money. Every penny in circulation is created ex nihilo by a bank or central bank through a book-keeping entry involving a debt for exactly the same amount.

While a debt is generally held by the same debtor for most of its duration, the corresponding money flows between many players in the economy.

If there isn’t enough traction in economic activity, a significant number of debtors fail to make sufficient revenues to be able to service and repay their debts. To avoid this, monetary authorities ease credit conditions, and therefore create more money to sustain activity.

As an ever greater amount of debts requires ever more activity for debtors to be able to service and repay their debts, and as easier credit is practically always used to stimulate activity, a perpetual spiral is created.

In fact, it amounts to a Ponzy scheme at global level. Like any such scheme (where participants are paid with money just brought in by new entrants) it has to end badly (when the flow of new entrants dries up).

At some point creditors become worried, confidence in the system erodes, people consume and invest less, growth in the economy is slowed or stopped, resulting in some of the debts becoming impossible to repay.

That is presently happening in the economy of developed countries (and soon enough in other countries).

Now jobs.

Because today’s economy produces largely standardised products and services on a very large scale, using vast amounts of energy and sophisticated technology, it only requires the labour of a limited fraction of the total population.

Out of the 7 billion people on earth, roughly 1 billion workers are enough to deliver about 95% of world GDP. And companies are constantly doing their utmost to squeeze payrolls because labour is by far the largest cost factor in the economy as a whole.

It is therefore evident that the trend can only be towards more unemployment and more badly paid employees.

Last but not least, nature.

Although money is a pure abstraction, economic activities involve land, plants, animals, minerals, oceans, eco-systems, processes, chemicals, wastes, high frequency electro-magnetic and radioactive emissions,… etc.

Activities in the mainstream economy cause major interferences with natural equilibriums.

The overused word environment conveys an idea of décor somehow external to us humans. This is totally misleading: we are part of nature, we are constantly in subtle interactions with every other creature on the planet and beyond.

The great ocean plastic vortex, the mass torturing of cows, pigs and chickens, the killing of soils in intensive farming …all these large scale horrors resulting from a total lack of respect for nature directly affect our minds, bodies, and souls.

There are not just about the environment; they concern a complete system to which we belong. Materialists have tried to cut off our subtle links with nature, but that is impossible.

With a bit of intellectual honesty, none of the above is particularly difficult to understand.

All it takes is to free oneself from mainstream materialist propaganda. Which is the first step towards spiritual transformation, the only effective way to respond to the global crisis.

For reference on the economy, here is a recent piece from the Financial Times: “A diabolical mix of US wages and European austerity”

Fear not, stay calm and attentive.



Copyright © Leo Foresta 2012

Greeks’ chance to create sane local economy

If humanity is to avoid slavery and self destruction, it will have to rearrange its activities in harmony with spirit and nature.

When they will be out of the euro and down the ladder of the world economy, Greeks will have a unique opportunity to free themselves from collective madness and create a local economy at 180 ° from global mainstream.

To do it, they will need to first step back and contemplate the vanity of choking one’s life with flashy cars, electronic gadgetry, fast food, fitted kitchens, plastics, prescription drugs, frequent travelling….etc., etc.

They will need to respect soils, animals, plants, water. And to respect themselves and each other. And to respect babies, children, women, old folks. And to respect time, and natural rhythms, and patience.

A sane local economy respectful of all is possible. Based on simplicity, harmony, and subtle rather than hard technologies.

Go for it, Greece. Show your genius. The world will watch in awe, and eventually follow you.

Fear not, embrace your higher self.



Copyright © Leo Foresta 2012

Essilor shines in the market

Essilor is the world leader of corrective lenses.

This morning its share price was up 26% since the beginning of the year, after a great performance in 2011. In ten years it went up threefold. Not bad, eh.

Essilor’s business may appear relatively innocent compared to that of, say, Big Pharma or the agro-food sector.

And it certainly is much less harmful than corrective eye surgery.

But the fact is that it thrives on people becoming ever more stressed and anxious.


This was explained in some detail in a previous post:

In short, the more deep seated fear, the more tension in the muscles controlling eye globes, the more pronounced the resulting optical faults.

Essilor’s success looks like a reflection of humanity’s profound unease.

Therefore, no regret at all about not being one of their “happy” shareholders (many of whom wear glasses or contact lenses themselves).

Fear not, and go for natural restoration of vision.



Copyright © Leo Foresta 2012

Debt pile only one view of the abyss

Events in the hologram show most people take for reality are turning more extraordinary than ever.

Debts, public and private, are now so large that they are becoming hard to service and replace, let alone pay back. This is not just in the Eurozone, but also in the US, UK, Japan, and many other countries.

China, the main source of hope for future world economic growth, has not only its own (internal) debt pile, but more importantly a colossal environmental liability.

The country’s soils, rivers, water tabs are destroyed and poisoned. Agricultural production has started to decline in quantity, not to mention its dramatically degraded quality.

To try and make up for this, the Chinese authorities buy land all over the world. Inevitably, this land will be damaged by chemistry-based intensive agriculture.

In Japan, the crisis at Fukushima is far from over. Millions of Japanese are much more affected than authorities will admit.

All nuclear production of electricity (previously 30% of the mix) is now stopped, replaced by the output of gas fired plants, requiring massive imports of gas which bring the country’s trade balance in the red.

Amazingly, the yen is still, for now, regarded as a safe currency.

We could go on; for example, also talk about the millions of tonnes of plastic bits in the oceans, the increasingly destructive exploitation of the last hydrocarbon reserves (tar sands, shale gas,…), GM crops, the effects of electromagnetic pollution, and so many other issues.

All of them interrelated.

Only the crudest intellectual dishonesty prevents the establishment from conceding that their materialist approach is crumbling. In fact, it has lost any kind of credibility in the eyes of lucid folks.

As yet though, only a minority are totally lucid, and spiritually advanced enough to stop clinging to a dying system.

The change of paradigm, inevitable as it is, does require courage and clear understanding. The latter implies not only intellectual grasp of events as they appear in the hologram of pseudo reality, but also intuitive recognition of the broader picture of existence.

This is why we share our thoughts on this blog.

Fear not, accept the clear messages of nature.



Copyright © Leo Foresta 2012

Bartering system in Greek town

As we hear ominous cracks in the global financial system, some people in a Greek town are reinventing bartering and local currency:

It makes you look forward to when bankers’ bonuses will have turned into smoke and our food will be local and bio-dynamic.

Only a question of time.

Fear not, smile to your neighbours.



Copyright © Leo Foresta 2012

Assignats for royal jubilee

During the French revolution, authorities issued assignats, which were IOU’s between bonds and actual currency.

As no limit was set to printing this new money, hyperinflation ensued, and soon enough assignats turned worthless.

Now consider the US, UK and EU in 2012. Printing assignats has taken the form of “Quantitative Easing” (QE).

With QE the central bank buys government debt and pays for it by crediting the accounts of commercial banks. Thereby money is created and long term interest rates are kept low, which enables government to run further deficits.

This, of course, cannot go on indefinitely.

But central bankers, in cahoots with governments and multinationals, do as if it could. Which keeps financial and commercial markets afloat for the moment and maintains the illusion of business as usual.

In the UK, land of credit and debts starting from university, authorities are particularly keen on QE, as outlined in the following article by the Financial Times’ chief economist “Why quantitative easing is the only game in town”:

Here is an extract:

The sums involved are startling. At the end of its third round of asset purchases, the Bank of Englan will own £325bn of financial assets, predominantly government bonds (or gilts), which it will have bought with newly created money. It will own close to a third of the gilt market.

Yes, this is monetisation. So is it effective? Is it even dangerous?

The BoE’s view is that QE is a natural extension of monetary policy, necessary when the short rate is 0.5 per cent, the lowest rate in the 318 years of the BoE’s existence.

With conventional measures exhausted, the BoE, like the Federal Reserve and the European Central Bank, has been driven to try highly unconventional measures instead.

In plain language, the authorities are desperate and the system is near to collapse.

When the financial crisis broke out in 2008, the Queen of England, on a visit to the London School of Economics, famously asked why no expert had seen the crisis coming.

Is anyone telling her about the QE fireworks arranged by the Bank of England to celebrate her Jubilee?

Fear not, and do not believe official propaganda on economics, or on any other subject.



Copyright © Leo Foresta 2012

World economy runs on emptiness but a new paradigm is emerging

The two previous posts explained the issues of debt based finance and energy resources, the twin fuels of economic growth in the last decades.

Crucial as they are, these issues are only additional.

The core problem of the world economy lies in what it produces, why, how, with what consequences, and, most crucially, according to what vision of life.

In conventional thinking, the economy produces goods and services demanded by consumers and state institutions to meet their various needs.

But what are their needs?

You might think that food, clothes, a roof over one’s head and a few other things to make life reasonably comfortable are, in that order, what individuals need.

However, in developed countries food nowadays tends to be the “adjustment variable”,  i.e. the last item paid with whatever money is left after covering all other expenses:  car, television, mobile phone, holidays, …etc.

Up until a century ago local communities were pretty self reliant regarding their food. But this has been completely altered by intensive agriculture and the concentration of retail in the hands of large companies.

Today most people are cut off from the land and rely entirely on the global economic system for their supply of food, and for everything else.

As a result, what people eat and drink (and what they put on their skin or hair) is for the most part unnatural, manipulated, of low nutritional value, and contaminated by additives and pollutants. Food is now a major contributor to ill health, rather than the basis of sound sustenance.

At the same time, the most rapidly rising category of individual and collective expenditure is medical care. This is often seen positively as a consequence of longevity, itself credited to better health.

But people in their seventies or older were born at a time when most food was still natural (perhaps not always abundant and varied, but natural), and when pollution was virtually non existent compared to now.

There are already clear signs that younger generations will not enjoy the same health in their old age.

So, cheap junk food on the one hand, expensive medical care on the other; what else do people and institutions spend their money on?

A major item, of course, is housing.

Just as in the case of food, local communities used to be largely autarkic with respect to housing. Materials and building methods fitting local climate and circumstances were used in construction.

This too has changed with industrialisation and concentration of materials and technology in the hands of multinationals and their satellites.

Similar observations can be made regarding virtually all categories of expenses in the modern economy.

The end result of these evolutions is Western middle class life (the model everybody is encouraged to emulate) : house in suburbia, cut off from nature, dependent on the car, filling neurotic emptiness with gadgets and activities driven by the obsession of social positioning.

An uninspiring existence, without much harmony and beauty, pestered by the constant stress of competition.

As to the environmental consequences of producing, packaging and transporting the millions of tonnes of stuff required by this model, they are fairly well known – though  underestimated in their scope and interactions. We can skip their tedious description.

To top it all, world population is still growing (over seven billion, three times more than in the late 40’s when people now retiring were born), and the concentration of big business ensures the gradual disappearance of more and more jobs.

From whatever angle one looks at the situation, it is clear that the dominant system is nearing the end of the road, with no escape way in sight, though nobody is able to predict exactly how things will turn out.

To reach this conclusion, we have followed the normal materialist mode of thinking.

As we face the greatest challenge in human history, the time has come to consider a radically different mode of thinking.

In fact a new paradigm is emerging in the minds of a growing number of people: a calm certainty that there is a lot more to existence than our five senses tell us; a realisation that the material world is not the whole of reality.

According to the emerging paradigm (which draws much from ancient traditions) the material world is only a mental motion picture based on observation at a certain scale.

This might sound a bit abstract; to make it more concrete, just look at your own hand for a minute.

You see fingers and skin. Now look closer, and imagine that your observation point becomes so tiny that you can see the cells of one portion  of skin on one of your fingers.

Observe a particular cell, and now observe a particular atom, then its nucleus, and now a particular elementary particle within it.

At such miniature scale, matter no longer exists as such. There is just a vacuum filled with pulsating energy fields, with changing patterns and various frequencies.

Physicians have amazing theories on what happens to particles and energy fields. Such theories bear no resemblance whatever with what we can conceive at our ordinary scale of observation.

Always bear in mind that underneath all we can see and touch there is a completely different reality of subatomic physics. And millions of miles above our heads there is the other formidable reality of astronomy, with its own equally amazing theories.

Yet reality is but one. What happens at our scale of observation is in fact constantly interacting with occurrences lower down and higher up.

Wondering where all this leads to?

Wait a minute, but now let us throw in “synchronicities”.

These are events that have such low probability of occurrence that they shouldn’t happen in our lifetime, but which do happen all the time.

You think of somebody you haven’t seen for months, and suddenly he or she is there before your eyes: on the same bus, in the same restaurant where none of you ever goes, except today. Probability quasi nil, shouldn’t happen, yet it does.

Or the book that you open “just by chance”, and immediately you come across a sentence that really resonates in you, given your present preoccupations.

If you are attentive and observant, you will notice that many events, big or small, seem to carry meaning, bring subtle messages to your attention.

Many people will confirm this. In fact, it is a law of existence. Materialist thinking cannot account rationally for it. Yet it is undeniable.

Which only confirms that materialist thinking only offers a very truncated view of reality.

But let us go a bit further and now throw in “consciousness”

This is the capacity to be aware of one’s own existence and of the existence of other things around. A fundamental subject for us, sentient human beings; yet one that is hardly ever considered in science.

Now, let us try and relate things: where could consciousness reside in the infinite vacuum filled by elementary particles and pulsating energy fields that, according to advanced physics, constitute the universe?

Don’t give yourself a headache: nobody knows.

And the fact that nobody can even begin to know is a very strong indication that there must be a hell of a lot more out there than materialists give the universe credit for.

To cut a long story short, the emerging paradigm stretches science into spirituality, and accepts that existence is run by the invisible, not by mechanistic laws. The latter follow the lead of invisible intention; matter follows the lead of consciousness.

With this paradigm in mind, one looks at the world economy, politics and many other aspects of life through new eyes. One begins to think freely, to get rid of encrusted layers of indoctrination by family, school, university, and society at large.

If you look carefully around, you will notice that some people discreetly move outside the beaten tracks.

They eat differently, don’t panic about their state of health, behave with less fear and aggression, engage in different work, in different relations with others. They are rarely rich, but also rarely very poor.

They know the system will disappear, and they are not scared. They are already, to some extent, in the new order of things.

In the invisible domain of reality, vibrations around our planet are changing. People in the new paradigm sense this. You may sense it too, if you tune down the noise and agitation of your mind.

Fear not, eat and drink with taste and moderation.



Copyright © Leo Foresta 2012

No solution to energy equation

World finance is a zero sum game played on an expanding balloon of debt.

Now that the balloon is getting too big, the rich take fright, start talking about the need to reduce debts, which spells trouble for the “real economy” (see previous post).

At the same time, another drama shakes the heart of the world economy: energy.

While cheap energy has enabled physical activities to multiply, the days of cheap energy are over. It is essential to understand why and envisage the consequences.

Fossil fuels – oil, gas and coal- account for some 82% of world energy supplies, the remaining 18 % coming from a mix of biomass, hydro electric, nuclear, wind and solar.

The big question is this: can the various sources now accounting for some 18% be expanded sufficiently to replace a significant amount of fossil fuels?

Why the need to replace fossil fuels?

Most ecologists would say: because their combustion creates CO2 emissions which are a main contributor to climate change. To prevent climate change from reaching catastrophic proportions, new CO2 emissions must be drastically reduced.

Hard nosed economists and business folks care much less about this, if at all.

Their real concern is that oil and gas fields that used to be easy and cheap to exploit are depleting fast and an increasing share of new production has to come from “non conventional” sources: deep offshore, tar sands, shale gas…

Non conventional sources of oil and gas are much more difficult and expensive to exploit, and operations entail long lead times, big risks and tremendous impacts on the environment.

Of the 82% of fossil fuels, oil represents around 32%, gas 25% and coal 25%.

Coal is used mainly for electricity generation, gas for electricity generation, steam production and heating, and oil for transportation, petrochemicals, heating, steam production and small scale electricity generation.

Oil has the widest uses, is the most flexible energy source, but is also the one whose reserves are being depleted fastest.

The price of crude oil is now stubbornly around or above $100 per barrel despite a weak economy. One wonders when it will reach $200 and how harsh the impact will then be.

Though less flexible, gas has the advantage of being the least carbon intensive and least polluting of the three fossil fuels and is therefore often presented as energy of the future.

New technology enables the exploitation of large hitherto unusable reserves of shale gas.

The technology known as fracturing involves the injection into the ground of vast quantities of chemicals mixed with high pressured water in order to break geological structures in which the gas is trapped.

While by far the most carbon intensive fuel, coal is an efficient and until recently relatively cheap source of energy for the large scale production of electricity.  Its reserves, though much larger than those of petroleum are not unlimited.

In short, all fossil fuels are problematic for various reasons and getting more expensive, and there is a wide consensus that it would be good to rely more on other sources.

The latter account for some 18% of all supplies; biomass represents around 9%, hydro electric  4%, nuclear 4%, and wind and solar together 1%.

A significant share of energy form biomass is “non commercial”, i.e. from just burning wood (often as a result of deforestation) and animal dung. This cannot increase much in the future.

The intensive and ecologically unfriendly cultivation of sugar cane, corn, and other plants for bio-fuels requires excessively large land surfaces and compete with food production.

Most sites suitable for hydro electricity have already been developed, often with heavy environmental impacts. There is little room for expansion in this area.

For the nuclear segment to take a share of say 6-8% of all energy supplies, several hundred new nuclear plants would have to be built. Post Fukushima this is most unlikely.

As for wind and solar, often paraded as the energies of a future carbon free world, the cold fact is that, though expanding quickly, they start off from a negligible position. Moreover, they too have significant ecological draw backs.

The bottom line is that fossil fuels are going to retain the lion’s share of energy supplies for many years to come, during which time their cost will rise sharply.

Superimposing this energy equation onto the finance game highlighted in the previous post, it is clear that economists and politicians face a problem with no conceivable solution in the present narrow mode of thinking.

And there are yet other problems to highlight about the prospects for the world economy. They will be envisaged in a future post.

The aim of our systematic review is not to kindle pessimism and despair, but to show clearly and definitely that the time is ripe for a radically different mode of thinking

Fear not, think straight and trust your intuition.



Copyright © Leo Foresta 2012

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