Sunday, October 6, 2019

A long period of the doldrums work just fine

No, We Don’t “Need” a Recession

To be sure, in the 1970s, the Nobel laureate economist Robert Lucas speculated that in the aftermath of a boom, workers would actually end up being unhappy for having worked during the good times. Having misperceived the prices of the goods they were buying, he argued, they would discover that they had overestimated their real (inflation-adjusted) wages: they had not been earning as much as they thought they were. But Lucas never explained why workers would have more information about wages than about the prices they were paying for groceries, rent, and so forth. Even as an abstract description of some unspecified process, the overall conjecture made very little sense.
Makes perfect sense for the same reasons we have revisions in our time series.

The discovery of real prices cost the Dem four elections in a row, something Brad must have noticed.  We leanred that Obamacare will cots us $500 extra a month.  It made sense that we would learn this because the IRS has courts and sheriffs that take our homes if we fail to pay it.  Why did we not know the cost before hand? Because Paul and Brad lied about the program for a few years.

Our US Military did not realize is had 4 trillion in losses until Iran demonstrated that our military was ineffective against drones. Iran had to teach them.

Now we voters and workers are discovering that someone has to cover the federal interest charges, rising at 15% per year. We just discovered that central bankers have to partake in the open market for liquidity. We had faked that for ten years.

Then there is the problem of double entry accounting which carries mis pricings forward to be recovered later.

You have no solution, Brad. All your solutions rely on some sore of defunct accounting tricks. You have been caught in the 'This time is different' scam and cannot escape. Paul has the same problem.

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