Who has trust in the financial system???? In the world of centralized control they believe that they can optimize and smooth inflation perfectly and control the money supply and there in the economy to perfection but as we have seen huge volatile blow ups happen as a result of the interference of the main signal to entrepreneurs of time preference which is the interest rate.. I have said this before but I think it will gain a better understanding of the credit cycle by reading anything written by Ludwig von mises.. It is a direct result of the monetary policy of the Federal Reserve that we have Bubbles and credit Cycles and they will make you believe that this is a natural part of the business cycle in a small sense it might be but they exaggerate all the problems that we have sure for the moment we might have some deflation area pressure but in general they had printed billions and billions of dollars there will be repercussions for that the Kick the Can down the road effect... They have essentially forced the FED to buy bad debt and keep interest rates down which is enabled government spending at a very high rate there is no checks and balances this is outright theft... Then they forced the banks to buy their debt as well to hold as collateral to do business in the form of excess reserves this is where all the printed money ends up and why it doesn't end up on the market causing rapid hyperinflation look it up
Why are you trying to politicize each and every post exchange between us. I find that odd. Can't you stay on topic? This is on economics not the left or right.
Any political interventions in the economy are destructive we have gone from a socialistic intervention style Obamacare crap to now a militaristic government spending infrastructure craphole of trump no political leader is just going to get out of the way
Just 2 cents: Based on the current development and status of nation building infrastructure projects from various countries as comparison, we might be able to do some analyses. An infrastructure must be draft, plan, implement, invest, build over a multi-year time-frame. Its timing is also vitally important. Once missing an economic cycle, the nation might have to wait for another cycle, due to availability of funds and labour cost. However, the labour cost and materials could be double if waiting until next economic cycle - usually also multi-year time-frame. Even worse, after missing a cycle, some infrastructure projects might have never be built. Because it is not only missing the boat by timing, but also change of national conditions such as funds, average personal income, jobs, desires - All unavailable perhaps. Except national debts! Say if a nation spent in the past tens of years most of the national income money in military setups and keep repeatedly reducing taxes further and then more reduction, how could the country nowadays have required money and funds and finance to invest and build quality infrastructures that the nation and people deadly need? Just unrealistic due to too expensive in cost and too low on investment returns as people users nowadays are not willing to pay for the running costs and daily usage fees. Also affected by low employment rate and low individual income. All gone - perhaps forever! That means private investors on huge infrastructures could be very few, not nearly nil - Zero! If those good ideas on infrastructure projects were already built tens of years ago, the finance and funds (due to national tax rates and incomes higher) were feasible and available then. But no more nowadays. The timing and chance has been gone. Never return! And the political dreams are still more tax cuts, and expect some wealthy investors would still invest their risk money in whatever good infrastructure projects, such as high speed trains, education system, water system, energy system, transportation system, or healthcare system. The money long time ago supposed to invest in trains and healthcare has been gone to some people's pockets by keeping in their bank accounts (or wars and weapons), not the national account - not in the forms of infrastructures that could greatly increase productivity, innovation, and national income. While reducing operational cost due to high running cost. Disregarding generating more CO2 for now. Short-term policies do work well! Need long-term vision and conviction for nation building! Vicious cycle or chain effect! https://en.wikipedia.org/wiki/Virtuous_circle_and_vicious_circle Q The terms virtuous circle and vicious circle (also referred to as virtuous cycle and vicious cycle) refer to complex chains of events which reinforce themselves through a feedback loop.[1] A virtuous circle has favorable results, while a vicious circle has detrimental results. Both circles are complexes of events with no tendency towards equilibrium (social, economic, ecological, etc.) - at least in the short run. Both systems of events have feedback loops in which each iteration of the cycle reinforces the previous one (positive feedback). These cycles will continue in the direction of their momentum until an external factor intervenes and breaks the cycle. A well-known example of a vicious circle in economics is hyperinflation. UQ
Oddtrader.... Your right about hyperinflation but you make no sense when it comes to Government nspending.... Taxation is theft...so government spending is illegitimate
1. US workers insisted on higher wages than the low cost economies they were competing against. 2, The rich bosses moved a lot of manufacturing offshore because of 1. 3. Greedy capitalists filled their own pockets at the expense of the workers. 4. Incompetent politicians had their own agenda. 5. Public services workers should be on flexible wages reflecting the state of the economy. 6. All patents should have the added protection of only allowing others to see their patents upon request. This would stop copycats from other countries. 7. The very low interest rates on savings.
I think the people living in developed countries with well established infrastructures supporting a number of wealthy capitalists/financiers playing golf would think quite differently than other people living in underdeveloped countries with zero infrastructure supporting zero capitalist/financier playing nothing.