Six strngs, I posted this when I first read it, and yeah, it's mathematically so.
Sixstrings wrote:I'm surprised this topic didn't spark a bigger discussion when you posted it.
Sixstrings wrote:Isn't it amazing that perhaps the single most powerful function of our government, in terms of impact on our lives, is not required study in civics courses.
Young people learn and sleep through lessons on "how a bill becomes a law," and the "branches of government," but the major external force in our lives is left in the province of the economists in the ivory towers.
It's just taken for granted that economics is somehow on the level of quantam physics, something so complicated that no average person should be bothered with it.
I daresay very few of our public school teachers and university professors even know how money is created.
ReverseEngineer wrote:You cannot teach economics without a solid background in Differential Equations, or at minimum Multi-variable Calculus.
Sixstrings wrote:The problem is, there's a very high price to pay for predicting Doom and it then not happening. This is why our leadership is reluctant on this score.. if they say the sky is falling and then it doesn't, they lose all credibility and influence.
They won't call it a monetary collapse until it's too late.
cbxer55 wrote:The necessary GDP adjustment - a moderate recession - should have been taken in 1987. It was not, and instead a bubble was intentionally blown. We got the Internet Bubble.
The necessary GDP adjustment - now about 10%, or a mild depression - should have been taken in 2000. It was not, and instead an even bigger bubble was intentionally blown. We got the Housing Bubble.
The necessary GDP adjustment - now about 20%, or a moderate depression, should have been taken in the summer of 2007. Alarmed by the mathematics, Bernanke attempted to blow an even bigger bubble with the discount and interest rate cuts, plus manipulation of reserves and 23A exemptions. The money went into commodities but the bubble was very small and short-lived because the mathematical limits of debt in the system had been reached and by the summer of 2008 this became evident with the failure of Fannie, Freddie, Bear Stearns, Lehman and AIG, along with a collapse in the commodity, stock and credit markets.
We are now up to a near-30% necessary correction in GDP, a SEVERE DEPRESSION, as a direct and proximate consequence of the actions taken by you, Henry Paulson, Ben Bernanke and Alan Greenspan over the previous twenty years and, more recently, the previous eighteen months.
Denninger has been right a lot more often than Schiff.
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