tag:blogger.com,1999:blog-2202092988208583550.post2476344476444500868..comments2024-03-04T15:09:00.479-08:00Comments on The Scientific Worldview: Bernanke is no GreenspanGlenn Borchardthttp://www.blogger.com/profile/09394474754821945146noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2202092988208583550.post-90106440184176892372008-12-09T14:47:00.000-08:002008-12-09T14:47:00.000-08:00Comment on an article by French on the Fed: http:/...Comment on an article by French on the Fed: http://mises.org/story/3247<BR/><BR/><BR/>Since I wrote the above blog, the dreaded surpluses have materialized once again. It makes no sense to increase the production of SUVs and of oil when their prices have fallen in response. Once again, the public sector needs to be expanded to do what the private sector cannot do without bubbles and crashes. The only way out of the depression that began in December 2007 is to repair infrastructure, raise salaries (by lowering taxes, providing publicly funded jobs, subsidizing mass transit, increasing unemployment benefits, Medicare, social security, and anything else that gets cash into the hands of those who will buy those surplus SUVs and surplus oil). This will require massive increases in federal and state spending, along with massive increases in the national (and state debt). French and his cohorts can whine about this all they want, joining Hoover in the dustbin of history. Any hesitation in prolonging the socialization of the economy simply will prolong the depression.<BR/><BR/>Hayek's motto: "collectivism is slavery" is true all right. Corporate capital has merged so many times and has gotten so hugh that it now is "too big to fail." Looks like we are the slaves.Glenn Borchardthttps://www.blogger.com/profile/09394474754821945146noreply@blogger.comtag:blogger.com,1999:blog-2202092988208583550.post-37338520842270849312008-02-05T13:17:00.000-08:002008-02-05T13:17:00.000-08:00Steve:The market always does its job. The US Gov h...Steve:<BR/><BR/>The market always does its job. The US Gov has nothing to do with the 3-month T-bill rate, since it is set via auction among capitalists. No amount of "propping up" will make any difference, as seen in Bernanke's recent failure. Both the rate of population growth and the associated economic growth will slowly decrease during the next century per the global demographic transition shown on page 290 in TSW. "Carrying capacity" means just that, the number of individuals that can exist under the environmental conditions. Cheap oil happened to be coincidental with the Industrial Revolution and the capitalist phase of our development, but it could have been any other source of energy. Even if oil had never existed, the growth still would have occurred exponentially with an inflection point suited to the univironment (maybe in 1989 or maybe not). Oil will never run out, it simply will become more expensive to obtain. Other fuels will replace it, with biofuels and nuclear sources having a head start for mobile uses.<BR/><BR/>GlennGlenn Borchardthttps://www.blogger.com/profile/09394474754821945146noreply@blogger.comtag:blogger.com,1999:blog-2202092988208583550.post-76724323707405638182008-02-05T13:15:00.000-08:002008-02-05T13:15:00.000-08:00From Steve:"The rate of 3 percent (I am assuming t...From Steve:<BR/><BR/>"The rate of 3 percent (I am assuming this is annualized rate) is exactly right for 1 percent growth in population and 2 percent growth of economy. But this is exactly the point about peak oil: the 2 or 3 percent growth cannot continue because it is exactly tied to the amount of cheap plentiful oil that we have always had while "normal" conditions have prevailed over the last several decades. I wonder who will prop up the faith in the US Govt to keep the T bill rate at 3 percent when there is no longer justification for it? Will the market do it for us? Great."<BR/><BR/>SteveGlenn Borchardthttps://www.blogger.com/profile/09394474754821945146noreply@blogger.com