2011-08-26

The physical economy of scrap

Numbers on forex factory posted this:

http://www.youtube.com/watch?v=ApMIx7iCUFY

Thats some fucked up shit!

These guys are going Mad Max/post apocalypse, and the cops are still in fascist mode. Well those cops are about ooh... one election from being fired most of em. The ecnonomy of:

Building stuff > taring it down > hauling scrap > getting a fine for most of the value

That economy is maybe something like (x/5) (x/2) (x/2), meaning first 80% of the value is removed, then 50% of the value is removed and then 50% of the value of what was built in the first place remains in the physical economy. Im just guessing here. But lets go into it a bit more.

First someone built those things that was the scrap before the guy hauled it. Building something then taring it down, anyone can see how thats a waste of time and energy. I mean if you build a house a new house in LuleƄ it costs around 250.00 USD in the city. If you tare that whole thing down, its NO WAY NEAR worth 250.000 USD as a heap of concrete, glass, plastic and steel. Its at most worth 25.000 USD. It might be worth a bit if you carefully disassemble it and sell the parts as working things, the toilette, the sink, cables and all that, but its still not worth any more then 50.000. But all that stuff you need to disconnected it from where its at, pack it carefully and haul it off, store it while you are trying to sell it and then maybe sell it. All that process really costs, maybe halving the value of the stuff you got. If you need to pay a god damn fine for doing the whole thing, it aint much of that 50.000 USD left from that house, maybe 20.000.

So i mean you begin with a thing worth 250.000 and you get something worth at most 20.000. The economy of hauling scrap and getting a fine wont work in the long run. Its actually deteriorating the physical economy, not building it.

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