Sure it can. That's how USA has paid for most foreign oil, and why the Saudi's are one of the two biggest holders of $US. The Fed pays in bonds, essentially a
30yr IOU. If the currency is still valuable in 30 years, the bond-holder gets a reward - but the asset is burnt this year.Debt is a loan from the future that creates real money now.
Clifford Heath.
Ok, if you can't explain what you are talking about the first time, I shouldn't expect it to be any better the second time either.
Rick C.
It is amazing to see so much ignorance in such a small space. The US government doesn't by all the oil imported to the US. Oil is bought by oil companies, refined and sold in the US... just like nearly everything else that is imported to the US.
About debt, it has nothing to do with creating wealth. It has to do with someone not spending money now so you can spend it now and give them more money later so then can spend it then. No creation of money or wealth.
Rick C.
I would add
Microsoft, Google, TI, Xilinx, Apple, all the newish idea-driven companies, didn't happen in Russia or China or Venezuela. Not even in europe.
The US is very stable. There is a lot of tribal/poltical shrieking, as there is a lot of sports team rivalry. You can easily ignore both.
The biggest political impediment to "keep what you make" is taxes, and corporate taxes just took a big drop.
-- John Larkin Highland Technology, Inc picosecond timing precision measurement jlarkin att highlandtechnology dott com http://www.highlandtechnology.com
Daniel Kahneman got a Nobel Prize in Economics for pointing out that the co ntrol theory is difficult because the human minds making the choices that h ave to be controlled are not always operating on rational principle.
If the process you are trying to control is unpredictable, control theory h asn't got a lot to work on.
them.
Not in Australia.
Australia took the record for the longest run of uninterrupted GDP growth i n the developed world with the March 2017 financial quarter, the 103rd quar ter and marked 26 years since the country had a technical recession (two co nsecutive quarters of negative growth).
This is not to say that Australia's economy is all that expertly regulated, but it does seem to be more expertly regulated than any place else. Mining interests do put a lot of effort into influencing the way the economy is r un to suit their particular interests, but they aren't as catastrophically effective as their American equivalents.
Probably because the processes they are trying to control are not mathemati cally tractable, which makes most of control theory totally irrelevant.
John Maynard Keynes never did get a Nobel price, but he was well-informed, and informative, on damping the consequences of big crashes. The Great Rece ssion was much less damaging that the Great Depression due to the Keynesian activities of the central banks.
Certain monetarist economists have won Nobel prizes, but this has more to d o with the gratitude of the fat cats, who do well out of economics crashes, than the intellectual effort devoted to telling the likes of Thatcher and Reagan what they wanted to hear.
-- Bill Sloman, Sydney
Physical assets, like real estate and gold, are inherently protected from money-printing. Or from non-Venezuela levels of money printing [1]. Savings are diluted (stolen) by money printing. So printing dollars drives people out of savings and into real estate and into the stock market.
[1] I bet Venezuala has more billionaires than California. Socialism made *everybody* rich.-- John Larkin Highland Technology, Inc picosecond timing precision measurement jlarkin att highlandtechnology dott com http://www.highlandtechnology.com
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At Tulane they would have had to concentrate on more basic ideas, like 2+2 =4.
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Says John Larkin, who fancies himself as an expert on economists (as on mos t other subjects).
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The idea that krw could have created wealth is entertaining.
John Larkin is unreasonably optimistic about the value of his own ideas.
Marxist capitalism was all about the value of technological ideas, once the y'd been embodied in expensive machinary. The machines are a bit less expen sive now.
The US has venture capitalists. If you've got a good idea it pays to take i t to America to get it funded.
is at least one European exception. I was offered at job at Acorn (from whi ch ARM eventually grew) in 1982, but chose Cambridge Instruments instead - they offered a better deal on moving expense. One of Acorn's founders ran a s an National Front (UK fascist) candidate in Cambridge (funded by Clive Si nclair) and his attitude to his employees was trifle exploitive. He didn't make it through to ARM.
In the sense that it hasn't imploded yet. When the top 1% of the US income distribution has managed to corner all the benefits from the growth in the US economy over the past thirty years, the USA is sitting on a time bomb, w hich they'd better defuse before it goes off.
The fact that rich-get-ricer and the poor-get-poorer divide in the US happe ns to sit above 99% of the US population isn't something that you can get a way with ignoring for any length of time. The US Spring hasn't happened yet , but there is a tightly wound spring in US society, and not a lot of time left to unwind it.
And the US government deficit just had a large increment.
The problem with the US isn't keeping what you make - no advanced industria l society can function without taxes - but rather that the US takes more of it's taxes from middle incomes than high incomes (mainly because there man y more middle incomes than high incomes, but high incomes do have enough ex tra political clout that they don't pay as much extra tax as would be neede d to make the US look equitable run).
-- Bill Sloman, Sydney
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Savings don't do anybody any good. The money should be invested in producti ve enterprises - the stock market is there to let you do that.
Real estate that can be rented out is productive, but - as the GFC illustra ted - it can get over-valued if the banks start lending irresponsibly.
Being a billionaire in a country with hyperinflation isn't being rich.
Socialism does make everybody a bit richer - looking after the poor and the children of the poor leads to a more productive work force - but Venezuala hasn't got any kind of socialist economy. What it has is a failed economy, being run by politicians who have decided to label their party socialist, in much the same way as the Donald Trump Appreciation Society in the US has decided to label itself as the Republican Party, after a spell when it cal led itself the Tea Party faction, and was widely known as the Koch brother' s astroturf.
-- Bill Sloman, Sydney It means that you are stuck with worthless paper money that nobody wants.
fredag den 2. november 2018 kl. 00.33.01 UTC+1 skrev John Larkin:
that's the point, stop people hoarding their money and instead force them to put they money to work
Right there's a value that's ~constant. If there's some relatively stable government issued currency. Then you you can use that to express the value.
After some hemming and hawwing* I'm in the process of selling me mum's house. Value depends a lot on the buyer when it comes to houses. (that's my limited experience.) The realtor wants to list it (what she thinks is), semi low (270k). And thinks it might get bid up. assessed value is $200k. 270k is a lot more than I was expecting... we'll see. (The guy next door offered me 200. so it's worth at least that.)
George H.
*when used with hemming there can be two 'w's, for symmetry.
What would constitute a physical infrastructure that "nourishes ideas and b usinesses"? Are we talking latte bars and bagles?
Yep, they did. Financially we see nothing changing from the direction thin gs were headed over the last 8 years, except the economy has reached the po int of pretty much the optimum point of growth and it is time to not keep p ushing for more rapid growth.
Oh, there is the small problem of replacing the taxes that were reduced.
In Virginia they have had a county collected tax on autos. Of course it wa s not popular. A gubernatorial candidate won because he promised to remove the car tax. Of course the counties didn't like that idea since it was th eir revenue that was being removed. So the state replaced it from their co ffers.
No free lunch.
Rick C.
Money that is hoarded *is* put to work; few people keep cash under mattresses. Savings is deferring consumption to investment.
Money that is spent is not.
Taxes force people to not save, but taxes are seldom used productively.
-- John Larkin Highland Technology, Inc picosecond timing precision measurement jlarkin att highlandtechnology dott com http://www.highlandtechnology.com
Yes, much like planning electrical generation on the whims of car usage which may be 95% on the average, but with wild swings based on things like public events and even the weather. Why? Because it is human nature.
Rick C.
Wrong. It is their money and people should be able to do whatever they want to do with their money.
But in any case there is not much money actually hoarded. If you put money in a bank, the bank just loans it out. The only way to really hoard money is to put it under the mattress. Anything else and it gets invested.
Dan
You make absolutely no sense.
Money is a representation of wealth.
"Take"? Clueless.
Of course.
Theft Taxation (though I repeat myself)
Yes, totally wrong.
Represents wealth.
That was true originally, but not any more.
The representation is broken, because there's now at least an order of magnitude more money than there is actual wealth. The difference is called debt. It's a loan from the future. It's money now that doesn't represent wealth now, but the expectation of wealth in the future.
That's why we had a GFC, the minor tremor before the major collapse. We have too many expectations of future benefit (debts) that cannot all be met. All well and good until the music stops, or folk think it's going to stop and dive for the chairs.
As I believe I've said before somewhere.
Clifford Heath.
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se control theory is difficult because the human minds making the choices th at have to be controlled are not always operating on rational principle.
ry hasn't got a lot to work on.
hich may be 95% on the average, but with wild swings based on things like p ublic events and even the weather. Why? Because it is human nature.
Human nature is predictable on a statistical basis.
Cars are typically parked for 95% of the time - which defines the peak of t he distribution.
We can be confident that they won't all be on the road at once - at least a round big cities - because there isn't enough road space to accommodate the m - but you could plot a histogram of the percentage of the cars parked aga inst the the percentage of the time that that proportion of cars are parked .
If you want to argue that the distribution has a long tail down towards mor e cars on the road you need to characterise the distribution in more detail .
Full width a half height is handy for symmetrical distributions. For an asy mmetrical distribution (which is what Rick seems to be wanting to claim) yo u need skew and kurtosis.
Rick does seem to have a problem thinking out his arguments with any kind o f precision. A quick google search didn't throw up and of the kind of data he ought to be looking for, but that's not really an excuse for claiming th at the data he needs would support his point of view if he could find it.
-- Bill Sloman, Sydney
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