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by Ashraf Laidi
Posted: Feb 22, 2010 5:00
Comments: 3054
Posted: Feb 22, 2010 5:00
Comments: 3054
Forum Topic:
GBP
Discuss GBP
George, you have tremendous depth of knowledge and interest but often I struggle with the language. But who I am to critique you when my French language is truly appalling. I think the discussion could get out of hand so we have no time for our charts and our trading lol.
I would never use the two words "great" and "Greenspan" in the same sentence. I regard Greenspan and Brown as having considerable responsibility for the debt getting totally out of control. Bernanke has had the unenviable task of trying to avoid a global financial implosion. Add to that the european common currency experiment has proven a complete disaster causing much pain for many of its members.
I will make a point of ordering "end of growth" at the next book order. I try to read most of Mauldins' considerable network of top analysts but there are time limits ! As I see it, the one ray of hope is the current scientific revolution but we can bet the politicians will continue the screw things and run out of time. Short termism in politics an insoluble problem.
The problem with Keynesian economics is we are supposed to raise taxes and reduce debt during the good times. Keynes made that extremely clear, it simply hasn't happened.
Another line of thought which may interest you is by Richard Heinberg in his book "end of growth". It talks of fundamental limits to growth caused by the diminishing return on energy (as measured by energy out/in) which is what has powered real GDP growth in the last 200 years. low real growth means stocks should trade much lower, or the dollar needs to devalue. The bankers will try to pump the system but its going to fail and yes one day we will wake up and the bond market would have reacted badly!