No Economic Double Dipping In Britain? BAAAHHAAA!!!!
One of the major posts we wrote on this blog years ago highlighted how and why money flowed through an economy. Money just doesn't arbitrarily flow wherever and whenever. In other words, as an example, money didn't just flow into real estate because interest rates were low. That is the uninformed view mostly perpetuated by Wall Street, economists and the mindless mainstream media. This is similar to the GDP ruse we have written about. Most economists, Wall Streeters and the media remark that consumption is 70% of the American economy. No, it is 70% of GDP. As we have remarked before, total trade in the American economy dwarfs consumption by a factor of four. And to understand what is wrong the our economy, one needs to understand both of these dynamics and more.
What if we had a public banking system where interest rates were always low? In other words, rather than the interest charged on loans being profit-driven for a private banking system, banks and loans would be used as a force for human development. You remember that concept? It's called democracy. In such a dynamic, interest rates would always be low because society would have no incentive to maximize the profit-driven banking tax on its development but rather would have the incentive to maximize development itself. Does that mean we would have a perpetual housing bubble with perpetually-low interest rates? That's ridiculous. The argument that the Fed caused the housing bubble because it lowered interest rates is one of the most asinine and economically-ignorant arguments in society today. It's a feint. And no one is more guilty of this than the Nobel Prize-winning economics community generally blaming low rates for the housing mess and our current economic malaise.
As we have said a thousand times, this crisis is not a banking crisis, it's not a housing crisis, it's not a debt crisis, it's not a crisis created because the government shouldn't be offering Social Security or Medicare as political idiots like "Dick" Armey would have us believe, and it's not a crisis that monetary policy will fix. Take out all of those dynamics and who is talking about anything else? How can you fix any problem if you have an improper diagnosis? The patient has terminal brain cancer and the doctor is treating the symptoms of a headache.
That the Telegraph is reporting British construction sales are skyrocketing once again and the economy is now humming along, means what? It means the Telegraph doesn't know its arse from a hole in the ground. It means quantitative easing has had the Marching Moron effect in Britain. ie, A bunch of incompetent bureaucrats are enabling more and more bad investment and unsound economic behavior into the economy and creating an ultimately larger mess. ie, People who have no idea what they are doing are making policy decisions so that other people who have no idea what they are doing can go back to doing what they were doing before. That is, doing more of what they didn't know what they were doing in the first place that created this mess. In other words, Britain is the poster child for bureaucrat-directed Orwellian make-work as was so popular in the Soviet Union.
The quantity of money idiots, aka the Chicago School we have said will prove to be a failure, are now destroying Britain. The Bank of England is now in unchartered territory for the first time in over three hundred years. They are Marching Morons running a nuclear power plant without an instruction manual.
Britain's economy is in serious trouble. As we have said since this nonsense about a double dip started, there is no double dip. Britain is simply laying the seeds for an even larger continuation of this single dip. They areadding to the negative outcomes associated with the continuation of the same crisis.
Remember, we have identified Britain as our candidate for a major country possibly experiencing a hyperinflationary bust. We outlined why that dynamic is more than likely not possible in the U.S. or Japan as the necessary dynamics needed to possibly create hyperinflation do not exist in these two economies. Britain, on the other hands, fits the hyperinflationary profile as a distinct possibility.
No economic double dipping? That's right. Not two flavors, just more of a massive single dip flavor still in progress.
Title link here.
What if we had a public banking system where interest rates were always low? In other words, rather than the interest charged on loans being profit-driven for a private banking system, banks and loans would be used as a force for human development. You remember that concept? It's called democracy. In such a dynamic, interest rates would always be low because society would have no incentive to maximize the profit-driven banking tax on its development but rather would have the incentive to maximize development itself. Does that mean we would have a perpetual housing bubble with perpetually-low interest rates? That's ridiculous. The argument that the Fed caused the housing bubble because it lowered interest rates is one of the most asinine and economically-ignorant arguments in society today. It's a feint. And no one is more guilty of this than the Nobel Prize-winning economics community generally blaming low rates for the housing mess and our current economic malaise.
As we have said a thousand times, this crisis is not a banking crisis, it's not a housing crisis, it's not a debt crisis, it's not a crisis created because the government shouldn't be offering Social Security or Medicare as political idiots like "Dick" Armey would have us believe, and it's not a crisis that monetary policy will fix. Take out all of those dynamics and who is talking about anything else? How can you fix any problem if you have an improper diagnosis? The patient has terminal brain cancer and the doctor is treating the symptoms of a headache.
That the Telegraph is reporting British construction sales are skyrocketing once again and the economy is now humming along, means what? It means the Telegraph doesn't know its arse from a hole in the ground. It means quantitative easing has had the Marching Moron effect in Britain. ie, A bunch of incompetent bureaucrats are enabling more and more bad investment and unsound economic behavior into the economy and creating an ultimately larger mess. ie, People who have no idea what they are doing are making policy decisions so that other people who have no idea what they are doing can go back to doing what they were doing before. That is, doing more of what they didn't know what they were doing in the first place that created this mess. In other words, Britain is the poster child for bureaucrat-directed Orwellian make-work as was so popular in the Soviet Union.
The quantity of money idiots, aka the Chicago School we have said will prove to be a failure, are now destroying Britain. The Bank of England is now in unchartered territory for the first time in over three hundred years. They are Marching Morons running a nuclear power plant without an instruction manual.
Britain's economy is in serious trouble. As we have said since this nonsense about a double dip started, there is no double dip. Britain is simply laying the seeds for an even larger continuation of this single dip. They areadding to the negative outcomes associated with the continuation of the same crisis.
Remember, we have identified Britain as our candidate for a major country possibly experiencing a hyperinflationary bust. We outlined why that dynamic is more than likely not possible in the U.S. or Japan as the necessary dynamics needed to possibly create hyperinflation do not exist in these two economies. Britain, on the other hands, fits the hyperinflationary profile as a distinct possibility.
No economic double dipping? That's right. Not two flavors, just more of a massive single dip flavor still in progress.
Title link here.
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