Someone's always a scapegoat. Economies are CYCLICAL!! Deal with it!! The western world is too obsessed with cause effect.
That's not true any more. Since 1982, when the Fed put the money-pump on overdrive, they've almost had to cook the books to indicate "we might have had a mild recession"... that could be as little as 2 quarters of 0.1% contraction. It's been pedal-to-the-metal money-pump and much, MUCH higher inflation than they have admitted for 25 years.... no end in sight, either.
Gomen for quoting myself... Depending upon the source quoted, the $USD has lost between 93% and 99% of its buying power since the creation of the Fed (everybody realize that?... probably not) We've coped with the Dollar's devaluation through inflation. That's how when the WSJ first came out, it cost $.02. Now, $2.50. Today a cart of groceries can easily cost $200. What happens when that becomes $2,000? Then, $20,000? People's investments and income won't be able to keep up with that and they will suffer a severe decline in standard of living. You say "can't happen"? Well, history says "it's happened HUNDREDS of times in the past, and IT'S GOING TO HAPPEN TO US FOR SURE"... unless there is a major change in how bidness is done in America... no sign of change so far.
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I think that's accurate. Delaying the inevitable is a bit like avoiding or postponing necessary medical treatment for fear of pain or discomfort. However, the infection is bound to get worse unless it's dealt with properly, and sooner rather than later. But no one wants to deal with acute discomfort, however necessary it may be. And so, we ignore the puss forming underneath the Band-Aid. Mañana.
I'm not sure I understand the context of your Keynesian reference. My economics is a bit rusty, but from what I recall, Keynes was an advocate of fiscal policy, meaning taxing and spending how and where appropriate. The Bush administration has screwed up on both ends. I doubt that Keynes ever conceived of debt spending into oblivion while cutting taxes (especially at a time when the ostensible economic fundamentals, as provided by the government, did not warrant such tax cuts in the face of mounting deficits).
We have the best politicians money can buy.Look at how much money they spend to get in and stay in the system.Power and sex alone can't justify spending so much. THEY TAKE CARE OF THEMSELVES AND EXPECT THE REST OF US TO MUDDLE THROUGH!. Even the Masai don't bleed their cattle to death.
P.S. Bush's fiscal policy is the economic equivalent of junk science. It's "feel good" stuff at odds with the real world.
Hence why capital is so important and why it will be so difficult to have access to it in the future. By the way, those arguing for a gold standard just might get their way - at which point wealth will be largely a dynastic quality. What did you think the point of Buffet's discussion of meritocracy over plutocracy was about? However, what he failed to recognize was that the meritocracy creates its own plutocracy of meritocrats. Not necessarily an anti-darwinian model, but it probably fails over the long run. I don't think it will be quite so bad, pabst, but it certainly isn't going to be good. The chinese will decide if recession occurs. I am eagerly awaiting the context of the third SED with china in december. However, recession here means disaster in china, so I hope they choose wisely, and don't egotistically try a repeat of "The Japan that could say No." Bad idea.
People don't realize how misleading and temporary "growth" based on borrowing and spending on wasting assets is! And people don't realize how absurd it is to simultaneously champion "low taxes" and sweep inflation under the rug.