Gold Price Monitor Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor

GDXJ 99.85

+6.2%

Nov 24 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Richard Mazzarella who wrote (35382)	6/15/1999 9:06:00 AM
From: long-gone	Read Replies (1) of 116764

A Must Read (prize quotes) Perception Creates Economic Reality By Andrew West "A lot of what keeps some economies immune is the fact that people think they're immune. Believing makes it so. And that's very good." - Paul Krugman, MIT Economist A dangerous notion is currently gaining credence among global policy-makers: perception "creates" economic reality. This idea suggests that economic reality is mutable, floating only in the consciousness of the populace, and subject to its whims. In other words, weak economies with poor economic policies can miraculously flourish due to positive sentiment. (And strong economies with excellent policies can be wrecked by a lack of "faith".) The logical conclusion is that, if you can fool citizens and investors into feeling confident, then economic reality will conform to their delusion. Bill Clinton recently called for lines of precautionary credit to help "countries with sound economies avoid financial instability". If a country has a "sound economy" one wonders how it could run into "financial instability". The modern explanation is that "irrational sentiment" combined with "hot money flows" somehow sends good economies to their doom. Clinton never seems to consider that investor perceptions might be correct and that IMF and government policy is wrong. It is disturbing to witness government officials and trusted economic advisors increasingly wielding the "perception is reality" concept. In the same way that President Clinton deftly "manages" public opinion, policy-makers now use collaborators and aides to propagate untruths about basic economic reality. capitalismmagazine.com

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next