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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?


To: ahhaha who wrote (13996)5/26/2009 6:09:58 AM
From: frankw1900Read Replies (1) | Respond to of 24758
 
Falling activity, where prices and wages hold constant.

Something has to give in this case: diminishing profits and/or diminishing quality of goods and services produced.

You can see it has an asymptotic lower limit

There can be more than one asymptote, can't there? How about sub-optimal quality improvements and profits compared to producers elsewhere? For instance, even though hampered by no profits, Detroit makes better cars these days but not as good as some of its competitors. So compared to elsewhere, its productivity is falling.

, but we're not there yet. As long as DM admin continues its present course, future lower limit will not be reached. In this scenario people continually adapt to ever less if deterioration proceeds slowly enough.*

Fits with the eco-freak agenda, doesn't it?

I think it's a scenario doomed to failure because it's the path to deprivation and folk are hard wired to abundance. We can be temporarily sidetracked with hair shirts but even when we are, there is always a black market in silk undies.

Otherwise, the adaptation is chaotic.

I'm thinking about the possibility of the deterioration accelerating, or happening in bursts of acceleration. My ideas here aren't well formed - they have to do with increasing dirigisme of governments and central banks and positive feedback - have to think about it for a bit.

.............................

*BTW this is the theme conservatives should be pounding: DM will make you poor as a church mouse. Every year, you, and your children, will have less and less. And government will have more and more of your money to spend.

No point in being too polite about it since polls indicate this is on peoples' minds anyway.