tag:blogger.com,1999:blog-6276561747841568697.post1430511695810882450..comments2024-03-12T08:15:56.379-04:00Comments on Krugman-in-Wonderland: Krugman endorses insanity (and I almost missed it)William L. Andersonhttp://www.blogger.com/profile/01802990642236807359noreply@blogger.comBlogger80125tag:blogger.com,1999:blog-6276561747841568697.post-78298402101868334022017-01-26T13:04:35.201-05:002017-01-26T13:04:35.201-05:00MRS. IRENE QUERY FINANCE IS THE BEST PLACE TO GET ...MRS. IRENE QUERY FINANCE IS THE BEST PLACE TO GET A LOAN {mrsirenequery@gmail.com}<br /><br />God bless you Mum, I will not stop telling the world about your kindness in my life, I am a single mum with kids to look after. My name is Mrs.Rachel Alex, and I am from Singapore . A couple of weeks ago My friend visited me and along our discussion she told me about MRS.IRENE QUERY FINANCE, that they can help me out of my financial situation, I never believed cause I have spend so much money on different loan lenders who did nothing other than running away with my money. I have been in a financial mess for the pass 7 months now,She advised I give it a try so I mailed her and explain all about my financial situation to her, she therefore took me through the loan process and gave me a loan of $180,000.00 at a very low interest rate of 3% and today I am a proud business owner and can now take good care of my kids, If you must contact any firm to get any amount of loan you need with a low interest rate of 3% and better repayment schedule, please contact MRS.IRENE QUERY FINANCE via email{mrsirenequery@gmail.com}Mrs.Irene Queryhttps://www.blogger.com/profile/12929013045629175649noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-85668843553858780652011-06-20T12:07:56.144-04:002011-06-20T12:07:56.144-04:00Lord Keynes:
And now it all comes crashing down y...Lord Keynes:<br /><br /><i>And now it all comes crashing down yet again:</i><br /><br />It has not crashed down the first time you misunderstood Austrian economics, so how can this be a crashing down "again"? Doesn't it have to crash down first before it can crash again? LOL<br /><br /><i>this is just another form of the Wicksellian natural rate, wher loans are conducted conceived in natura, in real commodities in an economy at full employment.</i><br /><br />No, this is an entirely new conception of the natural interest rate, one that is based on individual action, which makes it completely different from Wicksell, whose treatment ONLY considered groups and abstract aggregates.<br /><br /><i>LOL.. We are back to square one and Sraffa's critique wipes you out again, just as Hayek got a savage beating in 1930s and serious economists abandoned his theories.</i><br /><br />Sraffa's comments didn't refute Hayek the first time, I don't see how repeating the claim that he did is true every time you repeat it.<br /><br /><i>In “the evenly rotating economy” it is:</i><br /><br />"In Human Action, Mises advanced the Austrian theory of money by delivering a shattering blow to the very concept of Walrasian general equilibrium. To arrive at that equilibrium, the basic data of the economy—values, technology, and resources—must all be frozen and understood by every participant in the market to be frozen indefinitely. Given such a magical freeze, the economy would sooner or later settle into an endless round of constant prices and production, with each firm earning a uniform rate of interest (or, in some constructions, a zero rate of interest). The idea of certainty and fixity in what Mises called “the evenly rotating economy” is absurd, but what Mises went on to show is that in such a world of fixity and certainty no one would hold cash balances. Everyone’s demand for cash balances would fall to zero. For since everyone would have perfect foresight and knowledge of his future sales and purchases, there would be no point in holding any cash balance at all."<br /><br />Yes, Mises did argue that you will not see a single interest rate in the real world economy.<br /><br />Thanks for proving yourself wrong once again. Hahahaha<br /><br /><i>It can accomodate ONLY in a moneyless, barter world.</i><br /><br />Non-sequitur. It can accommodate ALL economies, money or barter.<br /><br />The natural interest rate is the same. It is the subjective ranking of values that individuals attach to future goods as opposed to present goods.Major_Freedomnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-53335845764776662902011-06-20T12:00:23.224-04:002011-06-20T12:00:23.224-04:00"It can accomodate ONLY in a moneyless, barte..."It can accomodate ONLY in a moneyless, barter world."<br /><br />No, genius. This is usual whatever-Keynesian ass-backward thinking. In any case, since I have dismantled you on the other thread, I won't waste time responding in detail.Balanoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-33834786560803221672011-06-20T11:15:19.527-04:002011-06-20T11:15:19.527-04:00"The natural interest rate is a collection of...<i>"The natural interest rate is a collection of individual interest rates based on real savings and investment."</i><br /><br />And now it all comes crashing down yet again: this is just another form of the Wicksellian natural rate, wher loans are conducted conceived <i>in natura</i>, in real commodities in an economy at full employment.<br /><br />LOL.. We are back to square one and Sraffa's critique wipes you out again, just as Hayek got a savage beating in 1930s and serious economists abandoned his theories.<br /><br /><i>"The natural interest rate is not espoused as an unchanging rate. No Austrian has ever argued that the natural rate remains the same."</i><br /><br />In “the evenly rotating economy” it is:<br /><br />“In Human Action, Mises advanced the Austrian theory of money by delivering a shattering blow to the very concept of Walrasian general equilibrium. To arrive at that equilibrium, the basic data of the economy—values, technology, and resources—must all be frozen and understood by every participant in the market to be frozen indefinitely. Given such a magical freeze, the economy would sooner or later settle into an endless round of constant prices and production, <b>with each firm earning a uniform rate of interest (or, in some constructions, a zero rate of interest).</b> The idea of certainty and fixity in what Mises called “the evenly rotating economy” is absurd, but what Mises went on to show is that in such a world of fixity and certainty no one would hold cash balances. Everyone’s demand for cash balances would fall to zero. For since everyone would have perfect foresight and knowledge of his future sales and purchases, there would be no point in holding any cash balance at all.” <br />Rothbard, M. 2011. <i>Economic Controversies</i>, Ludwig von Mises Institute, Auburn, Ala. p. 697. <br /><br /><br /><br />It can accomodate ONLY in a moneyless, barter world. <br /><br />This is <i>actually</i> what Sraffa says: a world with multiple natural rates.<br /><br />You require a dismantling of modern capitalism and return to a bizarre world where there is no money.Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-16639756489002391032011-06-20T10:48:57.035-04:002011-06-20T10:48:57.035-04:00Lord Keynes:
And here is Rothbard’s full quote:
...Lord Keynes:<br /><br /><i>And here is Rothbard’s full quote:</i><br /><br /><i>"The intersection of the two curves determines the equilibrium rate of interest—the rate of interest as it would tend to be in the evenly rotating economy. This pure rate of interest, then, is determined solely by the time preferences of the individuals in the society, and by no other factor."</i><br /><br />Yes, and Rothbard also spoke many times of interest rates with an s. The natural interest rate is a collection of individual interest rates based on real savings and investment.<br /><br /><i>This is the fantasy, fictitious “evenly rotating economy”:</i><br /><br /><i>"The Evenly Rotating Economy is a fictitious system in which there are no price changes whatever – i.e., there is perfect price stability. The concept is used to illustrate the function of entrepreneurship and to demonstrate meaning of profit and loss by hypothesizing a system where they are absent."</i><br /><br />Thanks for agreeing my point I guess?<br /><br /><i>So now we have a “pure interest rate” determined solely by “the time preferences of the individuals in the society”, but only in an “evenly rotating economy.”</i><br /><br />Of course. It is the rate that is tended towards, but is never reached in actuality, because the economy keeps changing.<br /><br /><i>You’re just back to question of how in the real world there can ever be such a pure rate when the economy would have to be frozen in time, without growth.</i><br /><br />The natural interest rate is not espoused as an unchanging rate. No Austrian has ever argued that the natural rate remains the same.<br /><br /><i>Yet ABCT requires a single natural rate of interest in the real world for the market/bank rate to coincide with for Austrian business cycle effects not to occur.</i><br /><br />Not at all. That's just your misunderstanding of Austrian theory brought about by a desire to refute instead of understand before you refute.<br /><br />The ABCT does not require a single interest rate. It can accommodate as many interest rates as there are instances of voluntary savings and investment.Major_Freedomnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-14013053965719137302011-06-20T10:24:13.371-04:002011-06-20T10:24:13.371-04:00LK, this is pathetic. either your comprehension sk...LK, this is pathetic. either your comprehension skills are extraordinarily lacking (entirely possible) or your intellectual integrity is extraordinarily lacking (entirely possible). you are creating a pathetic straw man that falls apart even before you get to the yellow brick road. its probably some combination of both.burkll13https://www.blogger.com/profile/00458192777661669534noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-39666568638656014692011-06-20T09:41:27.315-04:002011-06-20T09:41:27.315-04:00And here is Rothbard’s full quote:
The intersecti...And here is Rothbard’s full quote:<br /><br /><i><b>The intersection of the two curves determines the equilibrium rate of interest—the rate of interest as it would tend to be in the evenly rotating economy.</b> This pure rate of interest, then, is determined solely by the time preferences of the individuals in the society, and by no other factor.</i><br /><br />Rothbard, M. N. 2004. <i>Man, Economy and State, A Treatise On Economics Principles</i> (Scholar’s Edition), Ludwig von Mises Institute, Auburn, Ala. p. 389.<br /><br />This is the fantasy, fictitious “evenly rotating economy”:<br /><br /><i>“The Evenly Rotating Economy is a fictitious system in which there are no price changes whatever – i.e., there is perfect price stability. The concept is used to illustrate the function of entrepreneurship and to demonstrate meaning of profit and loss by hypothesizing a system where they are absent.”</i><br />http://wiki.mises.org/wiki/Evenly_Rotating_Economy<br /><br /><i>“… this line of argument makes it necessary to clarify the precise meaning of general equilibrium, as well as its role in economic analysis. Mises argued that general equilibrium—which he called the stationary economy (<i>stationäre Wirtschaft</i>)—is a purely methodological device. It is an imaginary construct (<i>Gedankenbild</i>) that has no counterpart in the real world. Its only purpose is for the definition of profit and loss.” </i> <br />(Hülsmann 2007: 773).<br /><br />So now we have a “pure interest rate” determined solely by “the time preferences of the individuals in the society”, but only in an “evenly rotating economy.”<br /><br />You’re just back to question of how in the real world there can ever be such a pure rate when the economy would have to be frozen in time, without growth.<br />Yet ABCT requires a single natural rate of interest in the real world for the market/bank rate to coincide with for Austrian business cycle effects not to occur.Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-4132973224400059642011-06-20T08:35:48.125-04:002011-06-20T08:35:48.125-04:00LK, you should be embarassed. its not hard to unde...LK, you should be embarassed. its not hard to understand.burkll13https://www.blogger.com/profile/00458192777661669534noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-91686547895556317012011-06-20T08:20:22.649-04:002011-06-20T08:20:22.649-04:00Lord Keynes:
Cite just ONE Austrian economist, wi...Lord Keynes:<br /><br /><i>Cite just ONE Austrian economist, with a proper reference, who argues that "when the term 'the natural interest rate' is used, it refers to each instance of interest at the individual level."</i><br /><br />EVERY SINGLE AUSTRIAN ECONOMIST WHO HAS EVER SAID "INTEREST RATES" WITH AN S, AND EVERY SINGLE AUSTRIAN ECONOMIST WHO ARGUES FROM INDIVIDUAL ACTION, WHICH MEANS ALL OF THEM.<br /><br />If you want ONE, then take your pick. Here's Rothbard:<br /><br />"This pure rate of interest, then, is determined solely by the time preferences of the individuals in the society, and by no other factor."<br /><br />Rothbard, M. N. (2004), Man, Economy and State, A Treatise On Economics Principles, Scholar's Edition, Ludwigsing von Mises Institute, Auburn, US Alabama, p. 389.<br /><br /><i>I repeat: cite just ONE Austrian economist, with a proper reference, who argues that "when the term 'the natural interest rate' is used, it refers to each instance of interest at the individual level."</i><br /><br />I repeat: EVERY SINGLE AUSTRIAN ECONOMIST WHO HAS EVER SAID "INTEREST RATES" WITH AN S, AND EVERY SINGLE AUSTRIAN ECONOMIST WHO ARGUES FROM INDIVIDUAL ACTION, WHICH MEANS ALL OF THEM.Major_Freedomnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-724017799374136112011-06-20T02:09:12.956-04:002011-06-20T02:09:12.956-04:00While Lord Dig-a-Ditch gnashes his teeth...
I rep...<i>While Lord Dig-a-Ditch gnashes his teeth...</i><br /><br />I repeat: <b>cite just ONE Austrian economist, with a proper reference, who argues that "when the term 'the natural interest rate' is used, it refers to each instance of interest at the individual level."</b>Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-41445376746200291152011-06-20T02:04:03.003-04:002011-06-20T02:04:03.003-04:00While Lord Dig-a-Ditch gnashes his teeth over sing...While Lord Dig-a-Ditch gnashes his teeth over singular vs. plural, note another gem from his mentor, the serial rapist of slave children:<br />"If the Treasury were to fill old bottles with banknotes, bury them at suitable depths in disused coalmines which are then filled up to the surface with town rubbish, and leave it to private enterprise on well-tried principles of laissez-faire to dig the notes up again (the right to do so being obtained, of course, by tendering for leases of the note-bearing territory), there need be no more unemployment and, with the help of the repercussions, the real income of the community, and its capital wealth also, would probably become a good deal greater than it actually is. It would, indeed, be more sensible to build houses and the like; but if there are political and practical difficulties in the way of this, the above would be better than nothing." - from Lord Degenerate's General Theory of Codswallop, Ch.10, provided by Stephen Wildstrom at Bloomberg BusinessweekAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-65035904212937882842011-06-20T01:34:58.523-04:002011-06-20T01:34:58.523-04:00:"When the term "the natural interest ra...<i>:"When the term "the natural interest rate" is used, it refers to each instance of interest at the individual level."</i><br /><br />Cite just ONE Austrian economist, with a proper reference, who argues that "when the term 'the natural interest rate' is used, it refers to each instance of interest at the individual level."<br /><br />Just one.Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-4749955512510746442011-06-19T23:54:48.186-04:002011-06-19T23:54:48.186-04:00Lord Keynes:
So you think a single monetary marke...Lord Keynes:<br /><br /><i>So you think a single monetary market interest rate matches multiple "natural rates", huh?</i><br /><br />No, that's a straw man.<br /><br />There is no single market interest rate. When the term "the natural interest rate" is used, it refers to each instance of interest at the individual level.Major_Freedomnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-26541372212874542032011-06-19T23:44:06.622-04:002011-06-19T23:44:06.622-04:00LK, you keep quoting figures from 2008, yet you ag...LK, you keep quoting figures from 2008, yet you agree that the stimulus package only hit the streets in 2009, so all those 2008 figures do is provide a bit of historic context. They are useless for any evaluation of the stimulus effect.<br /><br />Looking at 2009 (which is directly relevant to the stimulus), the US recovered a bit faster towards the end of 2009, but although the US has maintained higher GDP growth in 2010, it has also seen steady devaluation of the US dollar and also higher CPI than Europe (e.g. ten year CPI trend in the USA is running around 2.5% P/A but 10 year CPI trend in Germany is running only 1.5% P/A, devaluation of the US dollar against the Australian dollar has been approx 4% P/A when considered over a 10 year period).<br /><br />In addition, growth in the US total debt (private and public) has been the driver of GDP growth for decades, and the 2008 financial woes were just a reflection of this massive debt spiral hitting the limit of what is sustainable. Thus the 2009 stimulus has merely used public debt to fill in the hole as private debt collapsed. The continuing fall in US employment participation shows that this GDP boost does not represent any real job creation, and rapidly the US is reaching the point where larger federal debt expansion is also unsustainable.<br /><br />I predict that Latvia's small growth is going to prove a whole lot more sustainable than the debt-fueled growth in the USA.Telhttp://lnx-bsp.net/noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-15609059218678680512011-06-19T22:58:32.441-04:002011-06-19T22:58:32.441-04:00So you think a single monetary market interest rat...So you think a <i>single</i> monetary market interest rate matches multiple "natural rates", huh?<br /><br />If you belive that, then you might a well belive in the tooth fairy.Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-33691678174727219202011-06-19T21:54:28.424-04:002011-06-19T21:54:28.424-04:00Lord Keynes:
In other words: you have zero eviden...Lord Keynes:<br /><br /><i>In other words: you have zero evidence.</i><br /><br />No, it means there are as many instances of evidence as there are instances of Austrian economists talking about "interest rates" in the plural.<br /><br /><i>here is what Austrian economists actually say</i><br /><br /><i>“The natural rate of interest is the rate that equates saving with investment. The bank rate diverges from the natural rate as a result of credit expansion”</i><br /><br />An interest rate that equates savings and investment is the interest rate that equates each instance of saving and investment, at the individual level, taking into account maturity, risk adjustment, collateral, and other factors.<br /><br /><i>“The ‘natural interest rate’ is established at that height which tends toward equilibrium on the market. The tendency is toward a condition where no capital goods are idle, no opportunities for starting profitable enterprises remain unexploited and the only projects not undertaken are those which no longer yield a profit at the prevailing ‘natural interest rate’”</i><br /><br />The term "height" is taken the same way the term "price level" is taken. It doesn't mean there is only one interest rate or one price. The height of the natural interest rate is the height, or level, of all interest rates formed by each instance of real savings and investment.Major_Freedomnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-40708536119460036072011-06-19T21:35:50.152-04:002011-06-19T21:35:50.152-04:00Look JG, you are so naive, so let me educate you i...Look JG, you are so naive, so let me educate you in the ways of the radical game plan. <br /><br />You do not bring about marxism or any other collectivist system overnight in any democracy, let alone the U.S.<br />Socialism is the slippery slope that leads to such systems because it is unsustainable. You can only undermine the producers of a society so long before no one produces anymore. <br /><br />Read my blog and others if you want documentation of his radicalism in office.<br />Of course you do not realize crap because the MSM reports so little (even FNC). You need to read WSJ, IBD, AP, etc. all day and you will see all the stories.<br /><br />If you are calling Fox Orwellian, take my wager because I am alleging 10x worse than even Fox reports.<br />You know that everything I say, I can bck up. It is your asses that cannot cash the checks that your mouthes write. LOL...<br /><br />You guys are pathetic.American Patriothttp://defendourconstitution.blogspot.com/noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-66314721842842945322011-06-19T09:38:54.525-04:002011-06-19T09:38:54.525-04:00What challenge? That you can't find some quot...What challenge? That you can't find some quote that Obama made 20 years ago that you can hold against him? I'm sure you can. That's not what I'm talking about. I'm talking about the man's track record in office and how that track record is the most moderate of any democrat in the last generation. <br /><br />And yet, you seem obsessed with who his friends were in the 1980's or what political views his grandparents held while ignoring his actions during 2 years of his presidency. Why? Because the propaganda outlet that you watch can't weave his moderate track record into their narrative that he is a Marxist, radical, Mau-Mau sympathizer based on what his actions as president have been so they go looking to dig up anything in the past of his friends and family looking to smear him by association.<br /><br />This is exactly what I mean when I call Fox an Orwellian noise machine. And I'm not at all surprised that someone who admires that twisted political agenda would also admire a blog like this that celebrates the failed theories of a school of economists that has contributed nothing to the field of economics.JGnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-70803267459387379752011-06-19T06:23:22.276-04:002011-06-19T06:23:22.276-04:00Latvia’s GDP
2008 Q1 -4.1
2008 Q2 -2.4
2008 Q3 -1....Latvia’s GDP<br /><b>2008 Q1 -4.1<br />2008 Q2 -2.4<br />2008 Q3 -1.1<br />2008 Q4 -3.1<br /><br />2009 Q1 -12%<br />2009 Q2 -2<br />2009 Q3 -3.7</b><br />2009 Q4 0.1%<br /><br />2010 Q1 0.2%<br />2010 Q2 0.6%<br />2010 Q3 1.6%<br />2010 Q4 1.1%<br /><br />2011 Q1 0.2%<br />GDP Growth, Latvia, Tradingeconomics.com.Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-51579787994249993002011-06-19T06:15:55.192-04:002011-06-19T06:15:55.192-04:00The US went into recession later, had no depressio...The US went into recession later, had no depression, and only had 4 quarters of contraction and was out of recession after Q2 2009, owing to the stimulus that took effect in 2009.<br /><br />Q2, 2008 - 0.6%<br /><b>Q3, 2008 - -4%<br />Q4, 2008 - 6.8% <br />Q1, 2009 - -4.9%<br />Q2, 2009 - -0.7</b><br />Q3, 2009 - 1.6%<br /><br />http://www.tradingeconomics.com/united-states/gdp-growthLord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-68093628641149152962011-06-19T06:10:41.217-04:002011-06-19T06:10:41.217-04:00... owing to the stimulus that took effect in 2009...<i>... owing to the stimulus that took effect in 2009.</i><br /><br />Typo.Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-59065607407605510352011-06-19T05:48:48.352-04:002011-06-19T05:48:48.352-04:00... owing to the stimulus that took effect in 2008...<i>... owing to the stimulus that took effect in 2008.</i><br /><br />So now you are claiming that the stimulus did change the economy in 2008?Telhttp://lnx-bsp.net/noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-11133868588799557022011-06-19T05:08:39.818-04:002011-06-19T05:08:39.818-04:00Thus, the only genuine difference between Latvia a...<i>Thus, the only genuine difference between Latvia and the USA is growth in the final quarter of 2009, and that's really not a significant difference.</i><br /><br />What?<br />Latvia had a depression, 7 quarters of contraction: negative growth in every quarter from Q1 2008 to Q3 2009. They just happened to have plunged into recession earlier than the US did, because the effects of the credit boom/asset bubble collapse happened faster. Also, they had no stimulus.<br /><br />The US went into recession later, had no depression, and only had 4 quarters of contraction and was out of recession by Q2 2009, owing to the stimulus that took effect in 2008.<br /><br />Only in some bizarro world can the "only genuine difference between Latvia and the USA [be in] ... growth in the final quarter of 2009."Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-5502758494302894062011-06-19T02:55:09.442-04:002011-06-19T02:55:09.442-04:00LOL!! Where have I claimed above that the US stimu...<i>LOL!! Where have I claimed above that the US stimulus "changed the economy back in 2008"!</i><br /><br /><b>June 17, 2011 11:39 PM</b> above and I quote:<br /><br /><i>... they suffered 2 years of depression of 7 quarters of contraction: negative growth in every quarter from Q1 2008 to Q3 2008.</i><br /><br />I expect that you intended to say "from Q1 2008 to Q3 2009" which is a trivial typo, but at any rate, the fact that Latvia started showing negative growth earlier than the USA says nothing about Keynesian stimulus spending.<br /><br />Thus, the only genuine difference between Latvia and the USA is growth in the final quarter of 2009, and that's really not a significant difference.Telhttp://lnx-bsp.net/noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-31792851096419324082011-06-19T01:59:40.105-04:002011-06-19T01:59:40.105-04:00"Name me one, with a proper reference. Sounds...<i>"Name me one, with a proper reference. Sounds like you just pulled this out of your ***.<br /><br />EVERY SINGLE AUSTRIAN ECONOMIST WHO SAYS "INTEREST RATES" WITH AN "S"."</i><br /><br />In other words: you have zero evidence.<br /><br />In contrast to your unadultered B.S.: here is what Austrian economists actually say:<br /><br /><i>“The natural rate of interest is the rate that equates saving with investment. The bank rate diverges from the natural rate as a result of credit expansion”</i> (Garrison 1997: 24).<br /><br /><i>“The ‘natural interest rate’ is established at that height which tends toward equilibrium on the market. The tendency is toward a condition where no capital goods are idle, no opportunities for starting profitable enterprises remain unexploited and the only projects not undertaken are those which no longer yield a profit at the prevailing ‘natural interest rate’”</i> (Mises 2006 [1978]: 109).Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.com