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Pastimes : Hurricane and Severe Weather Tracking -- Ignore unavailable to you. Want to Upgrade?

To: longnshort who wrote (2983)	9/1/2005 5:39:32 PM
From: CalculatedRisk	Read Replies (1) \| Respond to of 26075

Nonsense. I would have considered it a good precaution. Besides NOLA was under mandatory evacuation, but it was 1) a local call, 2) it was late, and 3) they didn't have the proper resources. But hey, "Freedom's untidy" (Rumsfeld) ... looting is part of Democracy, right? ROFLOL.

To: longnshort who wrote (2983)	9/11/2005 3:40:58 PM
From: Rarebird	Respond to of 26075

>>It wasn't until later that the LEVIES BROKE.<< Two economic policies caused those levies to break. The first is the US credit expansion, a situation where interest rates are held artificially below the free market rate for saved and therefore lendable funds. The second is a monetary inflation which is literally an actual real increase of the total stock of money in circulation. Historically, the most tragic failures in real economic terms come when these two are acting at the same time, when there is both a credit expansion and monetary inflation. A credit expansion leads directly to a decrease in monetary savings. Why save if you can get only 2 or 3 percent or less on the money saved? A decrease in real monetary savings leads directly to over-consumption of the real economic goods presently available. More insidiously, it leads to a lack of maintenance of the physical infrastructure. Monetary inflation, a literally real increase in the total stock of circulating money, leads to increased consumption by those first getting the additional money. These are almost always government employees and/or contractors. Increased consumption because of an addition in the stock of money reduces what remains of the stock of consumable goods. The result is that first some prices and then others start climbing in monetary terms. Again, the standing infrastructure gets it in the neck, economically speaking. Both maintenance and replacement cost more, while they remain unseen and therefore unpopular to politicians. Eventually, the REAL goods needed are simply no longer there at all.