Icelandic Economic Collapse
A Systems Analysis Perspective on financial, social and world system links
“We live in a time with ever increasing complexity in society and this is reflected in our lives becoming more complex and less easy to understand. Globalization has meant that events andcausal chains span larger distances, structures are less transparent and the way the world worksis becoming more difficult to understand. The Icelandic bank crisis, the co-occurring national financial collapse and world financial crisis was part of a larger set of linked events that are difficult to overview and penetrate.”
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“The Icelandic economic collapse was real and very serious for a small country. Only by silent intervention of its Nordic neighbours were certain basic functions of supplying the country with essentials maintained. Without this, the situation for the Icelandic population would have been noticeably bad or even dangerous”
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“After the financial collapse of the banks and later the state, the financial transactions and transfers were mapped out in detail in a Parliamentary Special Investigative Report (2010), including who was involved and their actions described as far as possible. However, these results are all outputs from an economic system where decisions were made somewhere else in the larger societal system. To come closer to the question of how and why the economic bubble could go so far, we also need to address the social dimension of the collapse.”
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“One issue stands out clear from the global financial crisis, and that is that the there is no way back, the old system was flawed on a fundamental level, and the international financial and policy context is still very unsustainable. The whole world´s economic system, which is based on material resource consumption forever, has reached a limit we knew would be there somewhere in time, and which will eventually stop it (Meadows et al. 1972, 1992, 2005, Latouche 2007,Jackson 2009). Growth economics on a limited planet is unrealistic.”
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Icelandic Economic Collapse
A Systems Analysis Perspective on financial,
social and world system links (.pdf)
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System dynamics
Causal loop diagram
“Anyone who believes that exponential growth can go on for ever in a finite
world is either a madman or an economist” ~ Kenneth Boulding
Al Bartlett: In Growth We Trust (the simple math 1 to 8 ) and
The Essential Exponential!
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Related ?
The Four Horsemen
“The prostitution of the economics profession” [1].[2]
“not much to do with what the Constitution calls for.” [1].[2]
In the Valley of Elah