That's a little one-sided. I could argue there are rarely any rich scientists that just spend time inside their ivory towers of Engineering, Medicine, Computer Sciene or Mathematics. In all disciplines, money is made in the applications, not in theory, lecturing and textbook writing. You will find a whole bunch of people that made money applying economic theory, e.g. global macro fund managers.
Just a thought BUT maybe all you Buffet detractors are wasting your time pontificating over the value of economic theroy and maybe your time maybe better spent studying the markets that is unless you are macro guys at hedge funds that is.
Exactly, thank you Bogan. Buffett is running a HUGE chunk of money so his time horizon is definitely going to be different than 99% of traders/investors out there. All traders and investors are "value investors," just different shades of perceived value and only a few are successful.
Economic theory is a joke. I hardly think that is the case with the theory-- but the practical application of the theory, well now, that's a different matter.
well, by definition it isn't. When the government is in deficit it means that it gives more than what it takes. On average the population gets more money. Besides, deficit could also mean less income, that is, reducing taxes. right. So, wikipedia is wrong and central banks make up excuses not to be blamed for inflation. Do you realize what you are saying?
right. So, wikipedia is wrong and central banks make up excuses not to be blamed for inflation. Do you realize what you are saying? .............There must also be enough money circulating in the system to allow inflation to persist -- so that inflation depends on MONETARY POLICY.(Wiki) .
Your forgetting something. if the deficit is made up by borrowing(because of the reduced taxes) then the people who gave up that money to the government(by buying bonds) have less to spend therefore their ability to increase prices go down.
Im not into the fed conspiracy thing but during the 70's the fed did tried to blame fiscal policy(after all they could say 'keynes said it') while they refused to tighten
although i agree, but you are missing something here. these bonds are bought by investors from other countries, most of whom got rich by exporting to the US(generalization), US imported goods to continue growth, so in effect, these are not isolated events, its a CYCLE... everyones getting richer, theres more debt..so the prices do increases, and inflation does go up..
I dont think most of the bond buyers were foreigners at that time but I will accept that The thing is these exports lower inflation . China is exporting deflation, I mean your heard this before. all these cheap goods are lowering the price level for them around the world