tag:blogger.com,1999:blog-8515247115132134144.post2850086402648364753..comments2024-02-17T12:34:01.400-08:00Comments on Illusion of Prosperity: Horrible Mainstream Analysis Strikes AgainStagflationary Markhttp://www.blogger.com/profile/04568993350246477976noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-8515247115132134144.post-9516766757565681182011-08-03T15:59:18.289-07:002011-08-03T15:59:18.289-07:00WSM,
Was that attack really necessary?
We should...WSM,<br /><br />Was that attack really necessary?<br /><br />We should have never allowed debt to rise at a pace much faster than wages over the long-term. We would therefore not find ourselves trying to figure out a painless way to reduce it someday.<br /><br />We should have also never allowed a trade deficit over the long-term. We would therefore not find ourselves trying to figure out a painless way to reduce it too someday.<br /><br />We should realize that "free lunch" monetary and fiscal policies come at a price. That would certainly seem to be a good start to me.<br /><br /><a href="http://www.freerepublic.com/focus/f-news/1053684/posts" rel="nofollow">Squanderville versus Thriftville (Warren Buffet)</a><br /><br />I've shared his proposed solution for at least some of our problems. Most seem to think it would be too draconian, protectionist, and painful.<br /><br />From where I sit, it would be extremely painful. I'd phase it in over time personally (and it would still be painful). Doing nothing got us where we are now. Continuing to do nothing will create even more pain over the long run.<br /><br />We cannot live beyond our means forever. That's a mathematical certainty. Every solution will cause pain. (There is always pain when an addict tries to kick the habit.)<br /><br /><i>If credit cards didn't exist, the economy would be better off.</i> - Warren Buffett<br /><br />I believe that. Excess credit is not the <a href="http://tj.newsvine.com/_news/2009/01/08/2288410-credit-the-life-blood-of-the-american-economy" rel="nofollow">life-blood</a> of our economy. It is the heroin of our economy.Stagflationary Markhttps://www.blogger.com/profile/04568993350246477976noreply@blogger.comtag:blogger.com,1999:blog-8515247115132134144.post-81607841058539349602011-08-03T11:54:40.449-07:002011-08-03T11:54:40.449-07:00@ mab:
"I think if we "stay the course&...@ mab:<br /><br />"I think if we "stay the course" and keep using the credit creation privilege to extract wealth rather than create wealth everything is going to be peachy..."<br /><br />I think the fact that current fiscal and monetary policies have not worked is well understood by all. Please offer your alternative solution that "creates wealth". By only complaining and not offering an alternative solution, you are no better than the idiots in D.C. running the country into the ground.WSMhttps://www.blogger.com/profile/00131532131659441620noreply@blogger.comtag:blogger.com,1999:blog-8515247115132134144.post-6957031406965408562011-08-03T05:44:59.688-07:002011-08-03T05:44:59.688-07:00mab,
So many have hitched their wagons to eCONomi...mab,<br /><br /><i>So many have hitched their wagons to eCONomic myths (and lies!) for so long that they just can't let go.</i><br /><br />I think it should be called siegelsyndrome.Stagflationary Markhttps://www.blogger.com/profile/04568993350246477976noreply@blogger.comtag:blogger.com,1999:blog-8515247115132134144.post-68188626176375801422011-08-03T04:51:33.765-07:002011-08-03T04:51:33.765-07:00Stag,
I think if we "stay the course" a...Stag,<br /><br />I think if we "stay the course" and keep using the credit creation privilege to extract wealth rather than create wealth everything is going to be peachy - for the wealth extractors. *sigh* <br /><br />Bonus thought. We probably shouldn't put much faith in alleged mathematical inevitabilities that are founded on outdated and inapplicable eCONomic theories about the eCONomy and money. <br /><br />So many have hitched their wagons to eCONomic myths (and lies!) for so long that they just can't let go. They've spilled so much nonsensical digital ink that their egos won't allow them to change course and admit they've not only been wrong but profoundly wrong. That's how it appears to me anyway.mabnoreply@blogger.comtag:blogger.com,1999:blog-8515247115132134144.post-78614149494589129262011-08-02T20:16:25.472-07:002011-08-02T20:16:25.472-07:00We've got to stop using the rear view mirror t...We've got to stop using the rear view mirror to determine tomorrow's economic weather.<br /><br />I'll start.<br /><br />The economic weather of the past looks pretty good over the long-term.<br /><br />The economic weather of the future is going to be filled with thunderstorms.<br /><br />That's my prediction for what it is worth.Stagflationary Markhttps://www.blogger.com/profile/04568993350246477976noreply@blogger.comtag:blogger.com,1999:blog-8515247115132134144.post-42217127362826757552011-08-02T20:04:13.749-07:002011-08-02T20:04:13.749-07:00Bonus thought.
Why would we even care what the bo...Bonus thought.<br /><br />Why would we even care what the bond traders think? It wasn't like they saw the deflation in 2008 ahead of time. And when they finally did see it they ended up predicting 0% inflation over the next 10 years. How's that working out so far?Stagflationary Markhttps://www.blogger.com/profile/04568993350246477976noreply@blogger.comtag:blogger.com,1999:blog-8515247115132134144.post-18314353232490667162011-08-02T19:48:17.120-07:002011-08-02T19:48:17.120-07:00I want to point out that I do lean deflationary in...I want to point out that I do lean deflationary in the short-term (as seen in the upper left hand corner of this blog).<br /><br />It bugs me when I see horrible analysis that tries to support my case though. That's especially true when it is in the mainstream and is therefore supposedly written by experts on the subject.Stagflationary Markhttps://www.blogger.com/profile/04568993350246477976noreply@blogger.com