Saturday, November 5, 2016

I can explain the Rogoff doctrine

When your interest payments get very high, which it is, then  much of the economy is devoted to interest payments, so discretionary flows are not strong and pricing is inaccurate.  Thus to segment  commodities by price, the pricing spread has to grow such that there is separation between prices to cover the uncertainty.

The doctrine is well established in mathematics, we quantize for separation, and Kanosians know that.

And Kern is absolutely correct, pricing does not work and government multipliers will be disasterous, especially if you put Kanosians in charge with inaccurate pricing.  What happens is the Kanosians in government have no idea of the relative value of goods given the price distortion.  So, their pals in the special interest groups steal  most of the dough-re-me.

I take part of the blame

I should have kept working on this, someone other than the mathematicians must understand this. But mathematicians never connected, they all got hired by the physicists.  Well, get your asses back on economics otherwise we are screwed.

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