The US economy has been in crisis since 2008 and despite optimistic statements by officials and commentators there are no fundamental signs that the crisis will end in the foreseeable future. Current economic data suggests a number of diverging and unsustainable trends. The US economy has suffered a...
Posted to
Hera
by
Ron Hera
on Sun, Oct 11 2009
Filed under: Federal reserve, S&P 500, US dollar, CPI, deflation, debt, inflation, GDP
In my previous post I spoke about the role of interest rates in balancing the supply of real savings (from depositors) and demand for those savings on the part of borrowers (investors): What's difficult to grasp here is that savings are not just abstract dollar notes. When I save, I am implicitly...
Posted to
Money Memes
by
jimmy
on Sun, Oct 12 2008
Filed under: Banking, Standard of Living, Moral Hazard, Negative savings, Lending, Deflation, Inflation