Bob,If you are referring to my comment on this thread (#14), I was simply responding to Durango Bob's post on this same thread; Inflation/Not_Inflation (#10).
And I believe that CM was commenting/expanding on post DB's #14 post as well.
Hope that helps, John
Durango Kid!!!, I knew I seen this name somewhere! Honestly, call me a dumb ass but call me persistent too. I found your article!!! Cool.So Relieved I Am.
BOB
John, I had left a note to myself to come and look for a response so thank you. As I was scrolling down I seen his name and had that AHA! moment. Plus one of the posters commented on the Durango Kid and critiqued it, and I thought, "Man that sounds familiar". Anyways John, thank you so much for getting back to me. I hate missing anything that someone took the time to post.BOB
“These government funds are not just paying the government’s bills – they are being used to guarantee loans and mortgages that subsequently enter default, transferring what was private debt to the public and subsidizing politically powerful special interests.”
Objection your honor, pure speculation! Entering default is not a certainty.
“Once moral hazard has been institutionalized, it becomes a positive feedback loop.”
Objection! Source citation requested, again speculation.
“Mal-investment inevitably yields poor results, and just as inevitably, the government seeks to mask the dismal results of moral-hazard riddled policies and agencies.” Objection!
O.K. OK I get it. This is inflammatory with out support of citation. It is all hearsay anecdotal conspiracy theory. I mean “…accounting trickery, political dysfunction, and mal-investment of public funds as the hallmarks of their government.” Really?
There is nothing here in this article “…we analyze”. I am sadly disappointed.
My worry is that the present QE policies may jeopardize long-term growth by not addressing the underlying structural problems and the exploding debt of nations. Such super exponential systems will reorganize, enter a phase transition, to accommodate its forced displacement from equilibrium, its increasing potentials forced by policy and supported by “dynamic stochastic general equilibrium” model miscalculations.
http://arxiv.org/pdf/0907.4290v1.pdf
Such super exponential systems will reorganize, enter a phase transition, to accommodate its forced displacement from equilibrium, its increasing potentials forced by policy and supported by “dynamic stochastic general equilibrium” model miscalculations.This last sentence is too brilliant to go unnoticed. I hope Mr. Smith (whom I greatly admire) will provide his own rebuttal