<<there is a huge glut of aggregate supply relative to aggregate demand, meaning that marginal capital investment is not only unnecessary, but should be *expected* to produce negative returns>>
BINGO! Give that man a Nobel prize.
People seem to believe that capital is somehow "owed" a real rate of return, and you just have to find where that real rate of return will be. Nobody ever considers that, across the board, living standards could fall. EVERYBODY loses, and your best chance is to lose less than the rest; staying ahead of the Joneses, as it were.
I continue to believe that trying to INCREASE one's wealth in the coming deflation is a fool's errand, and that the best one can realistically hope for is wealth maintenance.
Of course, once John Ashcroft gets out of the hospital i will be thrown in the clink for having such a defeatist attitude; this post is in clear violation of the Patriot Act.
Freep & JJ -- congrats on the birthdays for the kids. The Reaperlette turns 2 on the 23rd; she's getting a Zaboomafo cake, a #38 jersey, and front-row seats for the Sox/MFY series 16-19 April. And let it be known that OUR wealth will never decline, so long as we have our kids (and baseball <g>)
Cheers |
