Post by The Great Aztec Joe on Aug 29, 2010 7:49:26 GMT -8
As I have said thousands of times in the past, I get my best belly laughs from economists.
Why?
Because economics is all theory predicated upon false assumptions and illogical reasoning. There are multiple schools of economics each trying to prove that their theory is right and the other guys are titched in the head. All of them! That is right, ALL of them make false assumptions.
Consider this In thermal dynamics, we know that energy in equals energy out in a closed system. In your car, the fuel put in the tank (energy in) is equal to the heat generated by the engine (usually wasted energy) plus the drive power consumed, plus any energy that was parked in the battery.
In an economic closed system, the value of money in should equal the value of money out. At least that is what most economists keep on saying like a mantra to their selves.
Unfortunately for their mantra, our economy is not a closed system. Therefore, the Value of Money IN Does not in any way equal the value of money out. I have been telling this to the world's economists for years, and they are too stupid to understand.
Take the dollar for instance. It is a medium of exchange and wealth onto itself. As long as it can buy a pound of crap it has value. People hoard it.
With piles of money in the barnyards of countries all over the world, and not in circulation, you can not have inflation. When you start having DEFLATION you find there are more and more piles of money all over the barnyard. It is only when people Stop seeing money as having value that you have inflation.
People point to the Weimer Republic in Germany that Hitler replaced to try to prove economic theory.
Total nonsense because the government deliberately went out of its way to make their money worthless. Because the French wanted to establish a damn good reason to continue the World War they insisted on reparations payments in Marks for the expenses of the First World War. In doing so they caused a Depression in Germany that was directly related to those payments the Germans had to make. The Germans accommodated the French and make their currency worthless to pay those outrageous claims.
When OUR government decided to make the money worth less, then the hording of money will decrease and rapid inflation can ensue. We will see who does what.
Why?
Because economics is all theory predicated upon false assumptions and illogical reasoning. There are multiple schools of economics each trying to prove that their theory is right and the other guys are titched in the head. All of them! That is right, ALL of them make false assumptions.
Consider this In thermal dynamics, we know that energy in equals energy out in a closed system. In your car, the fuel put in the tank (energy in) is equal to the heat generated by the engine (usually wasted energy) plus the drive power consumed, plus any energy that was parked in the battery.
In an economic closed system, the value of money in should equal the value of money out. At least that is what most economists keep on saying like a mantra to their selves.
Unfortunately for their mantra, our economy is not a closed system. Therefore, the Value of Money IN Does not in any way equal the value of money out. I have been telling this to the world's economists for years, and they are too stupid to understand.
Take the dollar for instance. It is a medium of exchange and wealth onto itself. As long as it can buy a pound of crap it has value. People hoard it.
With piles of money in the barnyards of countries all over the world, and not in circulation, you can not have inflation. When you start having DEFLATION you find there are more and more piles of money all over the barnyard. It is only when people Stop seeing money as having value that you have inflation.
People point to the Weimer Republic in Germany that Hitler replaced to try to prove economic theory.
Total nonsense because the government deliberately went out of its way to make their money worthless. Because the French wanted to establish a damn good reason to continue the World War they insisted on reparations payments in Marks for the expenses of the First World War. In doing so they caused a Depression in Germany that was directly related to those payments the Germans had to make. The Germans accommodated the French and make their currency worthless to pay those outrageous claims.
When OUR government decided to make the money worth less, then the hording of money will decrease and rapid inflation can ensue. We will see who does what.
