Richard KOO, BALANCE SHEET RECESSION

Discussion in 'Economy' started by editec, Oct 2, 2011.

  1. editec
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    editec Mr. Forgot-it-All

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    Anybody familiar with this guy?

    [ame="http://www.youtube.com/watch?v=HaNxAzLKegU&feature=relmfu"]Richard Koo - A "Balance Sheet Recession" - YouTube[/ame]

    [ame="http://www.youtube.com/watch?v=13myud00MSY&feature=related"]China: Played the Global Collapse Perfectly - YouTube[/ame]

    Seems to have a handle on the macroconomic problems we and the rest of the world are facing.

    One of the thing I found interesting about his POV is that he believes that MILITARY SPENDING, especially on military equipment, would be an excellent economic STIMULUS.

    Why specifically military hardware?

    Because it puts money into the hands of consumers, but the products that are produced by the milutary industrial workers does no include consumer goods.

    Therefore those workers with jobs increase demand without increasing supply.

    Hence other industries will respond to the demand for consumer goods, thus bringing the balance between supply and demand into a happier state.
     
    Last edited: Oct 2, 2011
  2. code1211
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    code1211 Senior Member

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    That point makes sense, but if the weapons are there, the possiblity that the weapons will be used seems to increase. If I never buy a car, the liklihood of me driving a car drop.

    I would prefer to see a 10% to 25% subsidy of anything used to improve one's home. Paint, shingles, the labor to install/apply them, concrete, windows, doors, shrubs, sod, lawn seed, tools, carpeting, flooring, drywall, bricks, sinks coutertops and all the rest.

    There is no sector of the economy that would not benefit from this and there is no person the country that could not get the subsidy.

    If the Big had directed the Trillion dollars of stimulus in this endeavor, we'd be looking at the recession in the rear view mirror and there would be 5% unemployment.

    The only good thing about this jack asses policies is that they have been SO BAD, that even the most ardent supporters know that he is failing to do anything productive even while he has been completely successful in doing what he wanted to get done.

    It's like his plan was to fail and he is succeeding in fulfilling his plan.
     
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  3. editec
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    editec Mr. Forgot-it-All

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    Hitler's economic advisors did everything right.

    That is why, while England, the USA and to a lesser degree France were still mired in the deflationary depression, Germany's 30% unemplyment dropped down to 2% as his nation rearmed itself.

    No wonder the German people loved the guy! He saved them from the depression that was still killing the rest of the world

    His mistake was USING all that military might.

    By doing that, he forced his enemies to do the RIGHT THING economically, and then the RIGHT THING geo-politically, too.

    I guess one might posit that HITLER saved the WEST from the GREAT DEPRESSION by being a meglomaniac!
     
    Last edited: Oct 2, 2011
  4. Toro
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    Toro Diamond Member

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    I've read a fair amount of Richard Koo. He is a strong proponent of Keynesian economics.
     
  5. Avorysuds
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    Avorysuds Gold Member

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    Military spending get you more wars. Having an overly equipped and large army just standing around is just asking for war.

    The costs will be much greater than predicted.
     

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