Mish's Global Economic Trend Analysis 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.

Strategies & Market Trends : Mish's Global Economic Trend Analysis

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: gpowell who wrote (25314)	7/25/2005 10:59:31 PM
From: Fiscally Conservative	Read Replies (1) of 116555

"As current consumption falls implied future consumption rises. In other words, a shift in the schedule of intertemporal resource allocation. Absent of a monetary authority, an increase in savings will change the prices of consumption goods relative to the prices of the means of production. As prices adjust, the optimal return on the additional savings is achieved by increasing the depth and breadth of intermediate production goods, which, in turn, shifts the schedule of output (of consumption goods) farther into the future and, thereby, matching the new intertemporal consumption pattern." All of this,of course,assumes a certain criteria for a 'time duration metrics'. The length of time for each "implied future variable" can not be accurately estimated in a truely free economic landscape(one absent of Governmental intervention;a monetary authority.) Hence,the effect of which can have long lasting effects. Any cause/effect relationship can not be predicated on outcome without a true set of controls. Absent of this would negate the fundamental analysis.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next