Monday, September 30, 2013

There We Have It! Just Declare That "Growth" Itself Is Nominal! Why Didn't "We" Think Of That Sooner?

Commentary by Roger Erickson

Someone forgot to tell us that "thought, growth & adaptation" were themselves actually nominal?

Where's JJ Cale when we need to understand nominally cool?

   Living on Bankster Farce.
     Living on 
Bankster Farce.
   Well you know we've all been through it,
     When we peg GDP to it.
   Living on Bankster Farce. (apologies to Don Williams)

So, now it's clear. The mercurial logic of Mad Hatter Economics can be taken to mean whatever we want it to mean. Nothing ... or or even nothing less? :(

That's our preference, right up until our way collides with this thing called objective reality. Then what happens, when our preference rate can't make it through a dangerous reality curve?

Warren Mosler: "miles driven looks a lot like the labor force participation rate graph. ;)
And, going to 'per capita' shaves about 1% off all the growth rates.
Then, adjusting for probable productivity increases takes many reported growth rates down another 1% [or more]."

Russ Huntley: "Here are two charts of the structural declines in miles driven and household income."

Vehicle Miles Driven: Population-Adjusted Fractionally Off Its Post-Crisis Low

Living in a Tulsa asylum? Sending it's graduates to Congress?

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