The Diminishing Impact of Debt on U.S. Economic Growth [View article]
1) there is no reason extrapolating that graph with a straight line - you do it in a math class in a respectful school, and you fail the class 2) the (gross) dept/GDP ratio will grow simply as a result of the ever increasing division of labour. So, no bomb going off in 2015
Martin Weiss: A Depression Is Unavoidable [View article]
this makes no sense. He complains that the economy becomes more and more government driven, and then tells us to sell everything including hard assets. Where have you seen prices going down in a government driven economy? are you out of your mind or are you just stuck with a bunch of short positions?
Ben Bernanke Will Bring Back the 70s Inflationary Economy [View article]
US are lucky they have FRS as a semi-private institution. This means it operates to a larger extent in the interest of business, as compared to other central banks. The argument that it is gratuitous for the Fed to enforce rates instead of the market sounds nice but breaks against the fact that it is not the market that prints M1. Some comments here rightfully and trivially point out that the problem boils down to the necessity of redistributing productive resources ("We produce too few high-quality competitive products the rest of world likes to buy from us"). There is political friction to that. Inflation eases that friction. Let's not forget that a successful strategy is one that will let as many people as possible produce as many goods and services as possible that satisfy our needs in the best possible way. Stable prices and currency are factors, not goals.
The Diminishing Impact of Debt on U.S. Economic Growth [View article]
2) the (gross) dept/GDP ratio will grow simply as a result of the ever increasing division of labour.
So, no bomb going off in 2015
Is the Bullishness Really Justified? [View article]
Martin Weiss: A Depression Is Unavoidable [View article]
Ben Bernanke Will Bring Back the 70s Inflationary Economy [View article]
Some comments here rightfully and trivially point out that the problem boils down to the necessity of redistributing productive resources ("We produce too few high-quality competitive products the rest of world likes to buy from us"). There is political friction to that. Inflation eases that friction.
Let's not forget that a successful strategy is one that will let as many people as possible produce as many goods and services as possible that satisfy our needs in the best possible way. Stable prices and currency are factors, not goals.