Monday, September 21, 2015

Current Events Article 1 "Dreams are what keep us humans going, striving to achieve greatness"

The article is written by a person who is against the Keynesian idea of having zero interest. The author gives data to support his claim. He talks about how the government should create economic bubbles to prevent situations like the one today. It also talks about how the government should work to increase the interest rate to spur investment instead of putting government money into firms and Wall Street. The graphs provided in the article prove the current tightening of treasuries and bonds and that the interest rate has flat-lined drastically compared to that of 25 years ago.The negative real interest rate is -1.52% compare to 30 years ago when it was +2.13%. It mentions how free money is actually tight money which is a product of a tiny circle of Wall Street people. The article also talks about how equity markets fall during blow-outs, which the author blames on the Goldman gamblers who have constructed a junk economics index. It also mentions how the trends in borrowing and spending show a complex absence of credit-fueled stimulus.

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