Thursday, February 16, 2017

The senators go bankrupt every generation

Another group of economists explaining low interest rates, low rates are the norm, they say.

Their chart says more, it says lower rates are the norm until the senators go bankrupt and fly the copter,.  Then we get high rates for a while as the economy straightens out pricing again.

Note, 1929, high rates, low rates 50s.  Then we get Nixon shock, a wash rinse repeat of the generations screwing each other..

This was about going off then on the gold standard (1929) then off gold and onto market (Nixon shock).  It is about he parents accepting losses for crap they bought from government.  Their children get pissed at the taxes and force loss accounting.

But, notice, we have gotten better at this simple accounting trick.  We killed about 20 mill in the 1940s market to market, and we have only killed 5 mill or so in our last mark to market.

The millennials will do a much better job, they got the sandbox.  I expect the millennials to kill less than a million, pretty good for an evolving species.

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