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Economic Growth Comes From Bank Lending Or Government Spending


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Ah, I see what you are getting at.

Still, in an academic context I think the word 'growth' should be used to describe growth, not inflation. Perhaps at the Juncker school of politics one would come up with such cheap tricks.

Still, I am not convinced he himself makes the distinction.

The whole notion of someone in his position making such unsubstantiated statements on something as puerile as "Twatter" reflects the credibility of the monetary system very well.

Edited by dom
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Growth is currently measured in nominal terms.

Nominal GDP growth is running at 8.8% p/a (2.2% in Q1) National debt will be inflated away in no time at this rate. Nominal GDP will increase by £1trn~ in 6 years if these figures were maintained.

(http://www.moneymarketing.co.uk/investments/obsr-net-exports-save-struggling-uk-economy/1032289.article).

These ONS figures look like total garbage to me not even slightly plausible. I suspect there will be massive revisions to the last 6 months data over the next decade.

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Guest sillybear2

Yep! It's all about faith. It's a religion and he's a devoted believer.

I have all the answers and I have a holy book textbook to prove it.

I have more respect for proper scientists and the medical profession to be honest, their endeavors actually help people in the real world. I can't see how bull$hit soothsaying ever helped anyone aside from the mildly ironic entertainment when they're proved wrong, they should all be book marked under charlatans.

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The whole notion of someone in his position making such unsubstantiated statements on something as puerile as "Twatter" reflects the credibility of the monetary system very well.

It would be so tempting to think of him as an idiot.

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There's quite a lot of bluster on this thread, but apart from not mentioning exports as a source of growth (which is probably mostly dependant on lending as well), I'm pretty sure he's technically correct.

Can anyone explain why he's wrong?

I don't think he is exactly wrong - he gets 2 out of 5 in my book.

The three he has missed are velocity, productivity and the transfer of actual goods across borders.

I'm sure there are more.

Frightening but entirely predictable.

Reading Bernanke and Gertler tells us everything that we need to know about the scale of the uncontrolled experiment underway at the moment : inflation is massively preferable to a reset of asset prices relative to incomes in their view.

I'm not sure about this (predictably).

I think they are fine with a reset of prices to incomes, but they do want inflation.

I wish they would be more upfront about what part of the money supply they want to inflate though.

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The Renminbi

:)

There again, their wet dream is to make it worth less whilst having less of it.

Strangely, the Jintao Jiabao junta seem to be pointing that way. :wacko:

Just makes me think: Money is what people take.

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He's refreshingly honest and correct, despite being the one notoriously "dovish" MPC member who helped cause this mess.

GDP is a nominal measurement. Without debt creation it will contract.

Of course he is correct in nominal sense.

Except of course that nominal GDP is meaningless to the welfare of the citizens. Zimbabwe must have had the highest 'nominal' GDP growth

rate in the world...

Or Mr B can have a special GDP inflating scheme setup with the HMG where the HMG will buy things from him at inflated price and then

tax 99% back on his profit. Repeat and rinse 10000000 times and UK GDP will fly but welfare of the citizens are unchanged.

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I have all the answers and I have a holy book textbook to prove it.

I have more respect for proper scientists and the medical profession to be honest, their endeavors actually help people in the real world. I can't see how bull$hit soothsaying ever helped anyone aside from the mildly ironic entertainment when they're proved wrong, they should all be book marked under charlatans.

Exactly! Power and control through deception and psychological manipulation = religion. The bankers have done nothing to advance the living conditions of mankind.

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