Current economic theory have lost the plot.

Discussion in 'Markets & Economies' started by leo25, May 14, 2019.

  1. leo25

    leo25 Well-Known Member Silver Stacker

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    Good to see these articles coming out of mainstream sites.

    https://www.abc.net.au/news/2019-05...abor-first-home-buyers-housing-slide/11105916

    How much longing can this bizarre system function when everyone stops believing?
     
  2. leo25

    leo25 Well-Known Member Silver Stacker

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    Some recent videos with Warren Buffett and Charlie Munger talking about how messed up markets and governments are today.



     
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  3. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    The China bubble is clearly deflating, and it will bring in a global recession and unemployment across the exporting world.
     
  4. systematic

    systematic Well-Known Member

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    Economic theory is for suckers ...
     
  5. Oddjob

    Oddjob Well-Known Member Silver Stacker

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    They lost the plot when Nixon finally killed off the gold standard in 1971....that said, "lost the plot" maybe a tad harsh, rather changed / rigged to system to benefit the US.
     
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  6. alor

    alor Well-Known Member Silver Stacker

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    U.S. IS REPORTEDLY READYING TO DEPLOY 120,000 TROOPS FOR WAR WITH IRAN

    wonder how many will remains standing
     
  7. whay

    whay Active Member

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    Worry not........most are asshole bandits.
    Piece of shit2.jpg Piece of shit.jpg
     
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  8. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    Recently, I placed a new order for nubian parabene free soap, it now costs me SGD6.20. The last time I bought it in 2017, I paid SGD4. The price inflation is pretty incredible, 20% a year.

    I buy between 6-10 bars at a time - this lasts my family more than a year. If soap isn't perishable I would stack soap bars. Or maybe I should buy another 10 bars?

    By the way, I bought 2 dozen brita filters last year, this would last me a couple years.
     
    Last edited: May 15, 2019
  9. JohnnyBravo300

    JohnnyBravo300 Active Member

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    The biggest misconception people have is that the govt will fix it. They are the problem, not the solution.
     
  10. whay

    whay Active Member

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    Pray tell since when soap became a perishable product?
    Expiration Date? Best before?....
    Stop subscribing to this consumer brain-washing.
    Search youtube for many easy ways to DIY parabens-free soap at home. Cheap and good.
     
  11. Oddjob

    Oddjob Well-Known Member Silver Stacker

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    A discussion on the RBA, their recent decision and where it all may be going....

     
  12. JulieW

    JulieW Well-Known Member Silver Stacker

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    It's almost like the Central Bank just does what it wants!
     
  13. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Really? Which economic theories are you referring to?
     
  14. JohnnyBravo300

    JohnnyBravo300 Active Member

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    $208 BILLION added to the national deficit IN THE MONTH OF MAY ALONE.
    Trump is setting records.
    The exponential growth of our deficits must continue or it will end badly.
    Keeping the dollar weak, stock market pumped and Americans broke is the new conservative way.
     
    Last edited: Jun 13, 2019
  15. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    Trump will be a historical figure
     
  16. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    Deficits don't matter. Once automation and AI start replacing millions of workers, the only thing that matters is retaining as many jobs. Failure to do so will mean revolution/anarchy.

    For the same reason it doesn't matter where the factory is located because they will mostly be 90% run by robots, and the remainder 10% technicians to operate and maintain the robots.

    The future is scary and even scarier for countries with big populations. How do you create enough work to occupy the people when most work can be automated? Even the adult trade can be done by robots. In some societies, the robot might even be preferred.

    Keynesian theory won’t work under such circumstances because without good paying jobs, there will be no middle class and no consumer market. Population will become a liability.
     
    Last edited: Jun 13, 2019
  17. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    You do it by ensuring that government policy does not create barriers to sound economic theory.

    Hume and le Monceau et al: you encourage specialisation ie the division of labour, allowing individuals to have more time to do what they do best and buy from others what they do better. Adam Smith: you seek to expand free trade across the globe as self-sufficiency is a road map to poverty. You reduce taxation as both an incentive to produce and because we understand thanks to Menger, Walras and Jevons that value is subjective those that earn incomes are in a better position to know how to spend their money than distant bureaucrats. You fully privatise the means of production as this improves efficiency, resource allocation and reduces waste and environmental harm and avoids the wealth destroying broken window fallacy Ricardo explained. According to Mises you introduce sound money ie competing private currencies that consumers freely choose to protect their wealth, this includes gold backed currencies, redeemable private company credit notes and relatively stable cryptocurrencies that prevent governments from creating periods of boom/bust in assets through their policies of expanding credit. And lastly for now Hoppe and Rothbard argue you replace the State, or at least according to Jefferson and Madison limit its powers to upholding liberty and ensuring a welfare safety net.

    So if governments listen to the great economic theorists, there will always be work as long as humans have needs and desires even in the unlikely scenario that much of the work we do today will be automated. And if Gorbachev and de Klerk voluntarily destroyed their regimes, there is hope for our less sinister nations.
     
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  18. alor

    alor Well-Known Member Silver Stacker

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    with the next tariff on $300 billions Chinese goods, how many millions of jobs would be lost in USA ???
     
  19. leo25

    leo25 Well-Known Member Silver Stacker

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    Can't be any more then when there was no tariffs. At the end of the day China needs to stop subsidising its exports and the US will then stop adding tariffs to imports. The focus should be on China and not the US.
     
  20. alor

    alor Well-Known Member Silver Stacker

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    when there is disputes, there are two sided to the arguments, not just one

    https://asia.nikkei.com/Spotlight/H...S4Y68EN5cf2dduJaNcK-7sdX4rAcDlMHplEeo4dFGtQpo

    NEW YORK -- Chinese telecom equipment supplier Huawei Technologies has informed Verizon Communications, a leading U.S. wireless carrier, that it owes licensing fees on more than 200 patents, according to a news report Wednesday.

    A Huawei executive in charge of intellectual property sent a letter in February requesting fee payments from Verizon to resolve the "patent licensing issue," The Wall Street Journal wrote in its online version, citing informed sources. The patents reportedly include those for network infrastructure and equipment, as well as "internet of things" technology.

    Representatives from the two sides met in New York last week to discuss some of the patents, according to a source cited in the report.


    Verizon would not comment on the specifics, citing potential legal issues, but company spokesman Rich Young told The Nikkei Asian Review that the issue is "larger than just Verizon. Given the broader geopolitical context, any issue involving Huawei has implications for our entire industry and also raises national and international concerns."

    Huawei declined to comment.

    The U.S. Commerce Department last month placed Huawei on a blacklist that essentially forbids procurement of American-made components. This patent dispute could deepen the tensions between the U.S. and China.
     

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