BUBBLECONOMICS is the problem. Face it!!!!

J

jueco2005

It is not Keynes anymore, not any other type of economic approach or idea.
Effectively since 1971 "credit" became the main form of money in circulation (check money aggregates).
We live in an era of Bubbles, due to constant asset price inflation, fiscal deficits, trade deficits.
Because this time they pushed it over the limit, does not mean things will change.
Learn and discuss how this bubbleconomics works.................YOU WILL SEE MORE OF IT.
 
money or cash is just receipts of ownership of goods and services produced in the economy.

therefore the money supply must = GDP


Quote from jueco2005:

It is not Keynes anymore, not any other type of economic approach or idea.
Effectively since 1971 "credit" became the main form of money in circulation (check money aggregates).
We live in an era of Bubbles, due to constant asset price inflation, fiscal deficits, trade deficits.
Because this time they pushed it over the limit, does not mean things will change.
Learn and discuss how this bubbleconomics works.................YOU WILL SEE MORE OF IT.
More...
 
I did not get your point

However, Real GDP is not GDP.
Also Economic development is more important than increases in Real GDP (even more than just GDP).

Quote from tradersboredom:

money or cash is just receipts of ownership of goods and services produced in the economy.

therefore the money supply must = GDP
More...
 
All you have to do is look at the massive and reckless expansion of the money supply starting in 1995. Compare this to the SPX and you'll easily figure out what caused "the greatest economic expansion in US history." It was purely manufacturered by the Federal Reserve. Is it any wonder why we are where we are today? Graph attached.

Quote from jueco2005:

It is not Keynes anymore, not any other type of economic approach or idea.
Effectively since 1971 "credit" became the main form of money in circulation (check money aggregates).
We live in an era of Bubbles, due to constant asset price inflation, fiscal deficits, trade deficits.
Because this time they pushed it over the limit, does not mean things will change.
Learn and discuss how this bubbleconomics works.................YOU WILL SEE MORE OF IT.
More...
 

Attachments

Your graph also shows how M3 went from 20% of the money supply in 1995 to over 40% of the same in 2007.

Quote from the1:

All you have to do is look at the massive and reckless expansion of the money supply starting in 1995. Compare this to the SPX and you'll easily figure out what caused "the greatest economic expansion in US history." It was purely manufacturered by the Federal Reserve. Is it any wonder why we are where we are today? Graph attached.
More...
 
Quote from jueco2005:

It is not Keynes anymore, not any other type of economic approach or idea.
Effectively since 1971 "credit" became the main form of money in circulation (check money aggregates).
We live in an era of Bubbles, due to constant asset price inflation, fiscal deficits, trade deficits.
Because this time they pushed it over the limit, does not mean things will change.
Learn and discuss how this bubbleconomics works.................YOU WILL SEE MORE OF IT.
More...

since all of our money is created through bank credit The ponzi sceme has to fail

lets say an economy has 1 million in total money supply. now the banks lend out 10 million on the 1 million in there banks. So that brings the total money supply to 11 million.

How does 10 million in loans PLUS INTEREST

The banks didn't create the extra money for the interest
 
Quote from antitrust:

since all of our money is created through bank credit The ponzi sceme has to fail

lets say an economy has 1 million in total money supply. now the banks lend out 10 million on the 1 million in there banks. So that brings the total money supply to 11 million.

How does 10 million in loans PLUS INTEREST

The banks didn't create the extra money for the interest
More...

sorry i hit post by mistake

depending on terms and conditions of the loans, the money that has to be repaid is a lot more then was created.

for this exercise lets say that they are all long term loans (30 year mortgages)At the end of maturity the banks well get the 10 mill in principle and another 20 mill in interest.

remember are pool fo money is only 11 mill. so no matter how hard you work or how smart you are 2/3 of the loans are going into default. the money supply is not there to make everybody whole.

so 2/3 of the loans will have to get new loans to cover the bad. and guess what that money is created the same way. which leads to a bigger gap. between money supply and loaned money. It's an exponential system that will keep going until it implodes

so we have keep creating bubble to hold it up. or change the way or money supply is created
i
 
Quote from antitrust:


depending on terms and conditions of the loans, the money that has to be repaid is a lot more then was created.

for this exercise lets say that they are all long term loans (30 year mortgages)At the end of maturity the banks well get the 10 mill in principle and another 20 mill in interest.
More...

yes, this mathematical dilemma relies on the ever-expansion of debt to continue, or massive deflation and negative interest rates to come to conclusion.

the latter is unlikely, as it would mean all debt is eventually paid off which would mean money supply goes to $0 and we'll be broke.
 
Quote from blackjack007:

yes, this mathematical dilemma relies on the ever-expansion of debt to continue, or massive deflation and negative interest rates to come to conclusion.

the latter is unlikely, as it would mean all debt is eventually paid off which would mean money supply goes to $0 and we'll be broke.
More...

yup , that sums it up inflate or go busto
 
Quote from blackjack007:

yes, this mathematical dilemma relies on the ever-expansion of debt to continue, or massive deflation and negative interest rates to come to conclusion.

the latter is unlikely, as it would mean all debt is eventually paid off which would mean money supply goes to $0 and we'll be broke.
More...

+1
 
You must log in or register to reply here.
Back
Top