62 replies to this topic

[andiron]

what happens if the natural rate of growth in richer countries dips to below 1%...like it was for many many centuries....

Read Gordon et al on this..........

in fact a Mayan outcome will be a massive Global Bust and then a recovery so slow that upends the very modern idea of 2-3% growth in the developed world....And a new equilibrium....(in post 08, despite massive fiscal (~1 T ) and monetary (~2.5 T) , US GDP growth is declining to now sub 2%.)...

http://www.crgraphs....gdp-graphs.html

Edited by andiron, 11 September 2012 - 01:34 PM.

[fib_1618]

it has nothing to do with how many people walk in the door of one of your three businesses with cash to buy. But, you know that.

The problem you have is pretty basic for most people

First of all, I'm trying to stay on point and not provide a tangent that has no relevancy to Keynesian economics.

Next, your assumption in the area of business relationships though have some point to them, but something like red tape can give a business quite a disadvantage when the playing field is different with your competitors and your fight for the consumers legal tender. This can range from being in one city, one county, one state, or one country from another. In the restaurant business, fines or the need to bring things up to code can be detrimental even if you hire the best waiter around unless you've already earmarked capital for these kinds of things which many do not....and we're not even touching upon the added mark up just so you can stay within an existing monthly budget (rent, utilities, phones, advertising, employees, etc.)

Anyway, I am just quoting from Keynes' book from the mid 30's. If anyone has a beef with the structure of his theory, best to take it up with him...whoops, he's dead.

Fib

[...]

Ah, "household debt" includes credit card and student debt.

Duh. Are you really as ignorant as you appear to be or is it just a reading comprehension thing?

I said:

That Fed chart shows that total household debt is in the best shape it's been in since 1995. Consumer (mainly credit card) debt is in even better shape than that. Mortgage debt is worse. Student loan debt is much, much worse.

And that "total household debt" chart was YOUR chart, courtesy of the Federal Reserve.

Your own chart disproves your point, whatever it was.

Then again, what should one expect from someone who thinks that "beaucoup" is spelled "buku." As in:

"The Chinese buy our debt because they have buku dollars from their trade surplus with us."

it obviously doesn't require being the smartest guy in the room.

Now, there's something nobody will ever accuse you of being.

Edited by ..., 11 September 2012 - 02:47 PM.