Part I: Toward the abyss Japan has been in a stable, but unsustainable, equilibrium for years. Its leaders know it is unsustainable and in their immense wisdom, decided to manage the whole system in order to achieve a sustainable development. However, this will prove fraught with danger since moving an unsustainable system away from its…
We will take the easy way out today and present reason #6 by referring the reader to Professor Reisman`s work, and then direct the reader to an earlier article published on Bawerk.net for reason #7. The reason is simply because we have been swamped with work on an article that will present the unsustainable path…
Something peculiar has been going on in the treasury market during the latest round of quantitative easing (QE). If we study the chart provided below we find that treasury rates increased as soon as a QE-program was enacted, and fell immediately after its termination. Take the TSY 10 year for example; as soon as QE1…
In their quest to avoid reality, our parents tried to re-establish the medieval practice of guilds to protect their own interest from our generation In medieval time’s workers formed associations or guilds to control the practice of their particular craft. A guild was basically a state granted privilege designed to keep potential new comers from…
The Europeans tried austerity, the act of reducing budget deficits, and they did not like it. It was no fun, so they decided to focus on growth instead. We have no idea what that means, but apparently they believe they can go back to the heydays when consumption had nothing to do with actual production….