Tag Archives: national debt

GDP – Grossly Deceptive Production

12 May

GDP is a very sketchy measure of economic output/performance. GDP as a measure of economic output is fraught with inaccuracies and composition errors. A better measure is to either discount those errors, which in itself becomes more of a subjective exercise, or more prudently just to look at the revenues and expenses of a nation. GDP today is simply Grossly Deceptive Production.

The GDP growth chart since 2000 shows that Portugal, Spain, Ireland and Greece for the vast majority of the last decade on average experienced robust economic growth. The fact is though, however, despite all of that, they are all bankrupt. So even with all the supposed robust growth and cheerleading, significant increases in GDP have: loaded sovereign balance sheets with toxic debt, created unfunded liabilities, a transfer of private debt to the public and a marked decrease in livelihoods. Professor Bernanke, please can you explain? 

 

James Bond vs The Recession

12 May

From the now infamous casetteboy:

“Production on the next James Bond film has been halted because the world has run out of money. Seems like a good time to post this video.

Alternate titles:

On Her Majesty’s Job Seeker’s Allowance
Dr No Job
The Dole Is Not Enough
Double O-verdrawn”

What will it take to get a serious discussion on solving worldwide debt?

11 May

Pickled politics, bendy left-wing antics and right-wing semantics, what will it take to get a serious discussion on solving worldwide debt? There used to be a time when nations spent what they could afford, constrained by the discipline of gold and precious metals. We are now in a position of insanity. Maybe we could plead insanity as a mitigating factor in restructuring our national debt with our creditors. And to the extent that Obama is prepared to paper over all the economy’s mishaps, to extend healthcare for all, unemployment insurance for the chronic work-shys and an extension of tax free subsidies for those who require it the least, all ideas however wacky are invited. America – the land of opportunity.

The Economist had a fairly interesting article titled ‘If nothing else, fiscal rules may trigger a debt discussion’ which highlighted a very pertinent point, the critical discussion of debt ceilings and imposing fiscal discipline. While I cannot subscribe to all facets of the piece the more we get talking about national debt the better. Debt clock anyone?

%d bloggers like this: