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As long as interest rates are essentially <=0, no coefficient or ratio which does not take that into account is useful. Breaking the concept of money as value
by pfortuny 5y ago
As long as interest rates are essentially <=0, no coefficient or ratio which does not take that into account is useful.
Breaking the concept of money as value in time (and that is what the ineterest rate means, because value now is better than value later) has broken all the basics of economics and finance. And is totally distorting.
It is a huge shame which central bankers somehow will have to pay for.
Edit: just to explain. "Value now" is better than "value later" or otherwise actions are generally worthless, which is a somewhat negative philosophical foundation for "Economy" which comes from "household management"...
- nlitened 5y ago> It is a huge shame which central bankers somehow will have to pay for. You surely mean that central bankers will have to pay nothing, and poor people will pay.
- belter 5y agoCentral Bankers will argue they did not know how the Economy works. They were able to pull off that one before: "Greenspan - I was wrong about the economy. Sort of" https://www.theguardian.com/business/2008/oct/24/economics-creditcrunch-federal-reserve-greenspan https://www.theguardian.com/business/2008/oct/24/economics-c... "‘I made a mistake,’ admits Greenspan" https://www.ft.com/content/aee9e3a2-a11f-11dd-82fd-000077b07658 https://www.ft.com/content/aee9e3a2-a11f-11dd-82fd-000077b07... "Greenspan: I was wrong about the economy" https://youtu.be/XQFq97ljy3k https://youtu.be/XQFq97ljy3k "Greenspan Says I Still Dont Fully Understand What Happened" https://youtu.be/R5lZPWNFizQ https://youtu.be/R5lZPWNFizQ "Alan Greenspan, ''Savant Idiot''" https://www.forbes.com/2008/10/24/alan-greenspan-idiot-oped-cx_mt_1024thomas.html?sh=6affb82c4fe3 https://www.forbes.com/2008/10/24/alan-greenspan-idiot-oped-...
- belter 5y agoIn case you are wondering the current Fed chairman is considered a Greenspan admirer: "Powell’s Homage to Greenspan Hints at a Fed Flashback" https://archive.is/Fk5Ou#selection-2695.0-2695.53 https://archive.is/Fk5Ou#selection-2695.0-2695.53 "Jerome Powell Channels Alan Greenspan in Putting Stamp on Fed" https://archive.is/R90mw#selection-3027.0-3027.61 https://archive.is/R90mw#selection-3027.0-3027.61 "Fed Chairman Jerome Powell makes no secret of his admiration for Alan Greenspan—and now his actions looks a lot like his predecessor's" https://twitter.com/business/status/1303641312693039105 https://twitter.com/business/status/1303641312693039105
- pfortuny 5y agoPayment comes either in this life or in the next one, as far as I believe. It is best to pay in this life, though...