Another clueless mainstream economist. And to think I used to like this guy.
| The debt-to-GDP ratio for the US is just over 100%, according to OECD data, Hunt said. At some point, the cost of servicing a country’s debt becomes intolerable. Credit markets calcify and the “bang” point (a term Reinhart and Rogoff coined) is reached; default is the only option. The bang point goes by other names – the fiscal limit, the Keynesian endgame, and the Cochrane condition – but, whatever you call it, it’s a point of indebtedness from which a country cannot escape. |
They all cite the moronic Rogoff/Reinhart "study" where not a single country examined had a free-floating, non-convertible monetary regime. Yet it's totally okay for them to completely ignore this distinction and still call themselves credible economists. What a joke!
The debt has gone from $800 bln in 1980 to $16 trillion now and rates have gone from 20% to ZERO, but there isn't a mainstream economist around today that will look at that fact and say that there's a problem in their assumptions. This shows that economics as a profession is completely DEVOID of even the slightest hint of any scientific method. It's a totally corrupt profession. Disgusting.
5 comments:
A new doctrine with an old recipe :
http://failedevolution.blogspot.gr/2012/11/a-new-doctrine-with-old-recipe.html
Right... you see these metaphors only with these folks.. Hunt here with "bang point"... Huh?
Denninger the other day in his exchange with you on the RT using an Obama $3 bill (btw ???) and cutting it up like he was in a Ron Popeil ginsu knife infomercial and saying "they disappear into the ether"....
Granpa Al "Simpleton" Simpson with his mental masturbation around the "16T babies", "you could pile them to the moon and back to the sun and then around Saturn, blah blah blah..."
This is all very non-professional. No use of professional terminology, accounting, no true legal analysis, no review of applicable jurisdictional laws & legislation, continuous reliance upon use of teleological statements (ie "the deficit is out of control") etc...
At the end, they may be able to spew some numbers out and usually do some sort of misapplied arithmetic operation on the numbers in some sort of stock-flow violation... but their "money line" at the end is ALWAYS some false metaphor that they expect the sheeple to believe....
NOT HAPPENING HERE MORONS!
rsp,
Japan has been running massive deficits for over 20 years with over 200% debt to GDP. Rates at a big fat donut. Who gives a f$&k? We are focusing on the wrong stuff here - as usual.
I think the average American has a private debt to GDP ratio of about 400%
The way the banks control the government is just like how circuses train elephants.
"When young, they are attached by heavy chains to large stakes driven deep into the ground. They pull and yank and strain and struggle, but the chain is too strong, the stake too rooted. One day they give up, having learned that they cannot pull free, and from that day forward they can be "chained" with a slender rope. When this enormous animal feels any resistance, though it has the strength to pull the whole circus tent over, it stops trying. Because it believes it cannot, it cannot."
http://www.noogenesis.com/malama/discouragement/helplessness/circus_elephants.html
All too many economists are basically carnies hired to train the elephants.
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