Re: Spotify is causing a major problem for economists

["Dave Farber" <farber () gmail com>]

Begin forwarded message:

> From: Hendricks Dewayne <dewayne () warpspeed com>
> Date: October 9, 2016 at 2:38:18 PM EDT
> To: Multiple recipients of Dewayne-Net <dewayne-net () warpspeed com>
> Subject: [Dewayne-Net] Re: Spotify is causing a major problem for economists
> Reply-To: dewayne-net () warpspeed com
>
> [Note:  This comment comes from friend Steve Schear.  DLH]
>
> From: Steven Schear <steven.schear () googlemail com>
> Subject: Re: [Dewayne-Net] Spotify is causing a major problem for economists
> Date: October 9, 2016 at 1:43:05 PM EDT
> To: dewayne () warpspeed com
>
> What a ridiculous article. Its quite expected that when the central banks and their sycophant economists finally 
> realized that their incantations of quantitative easing (and other foolhardy actions) did not lead to their expected 
> results that there would be a hunt for something ("unexpected") or someone to pin their failure on. That many 
> "non-priesthood" economists saw their plans as inherently flawed from the outset will be ignored with claims that 
> these others were like "'broken clocks" that are bound to be right occasionally.
>
> First, much of the massive money initially created by central banks was used to prop up commercial bank balance 
> sheets as reserves. Since reserves cannot be lent this money never directly found its way into the wider economy to 
> increase the currency velocity (not "money velocity" since I only consider gold, silver and maybe bitcoin as money) 
> and thereby "improve" inflation. That it, instead, created deflation is something these priests have yet to publicly 
> acknowledge. Additionally, accounting standards were changed so banks did not have to recognize the trash on their 
> balance sheets as marked-to-market. This unearned rescue, in turn, created even more moral hazard and enabled banks, 
> like Deutche Bank, to take on even more risk in derivatives and which we are seeing has inflated another banking 
> crisis and quite probably lit the fuse for the next "pop" as well.
>
> Second, so may workers lost their "middle-class" jobs which were either replaced with much lower wage jobs or none at 
> all (and those people fell off the unemployment rolls, some into forced retirements, never to be counted as 
> unemployed again) that the impact was to lower the general population's incomes counter to support the kinds of 
> economic activities being sought by the Fed. One can best judge this by the accurate income and taxation data 
> published quarterly by the IRS which shows no economic recovery for the general population only the top >> 1%.
>
> Third, the historically (and by this I mean going back to ancient times) low interest rates have punished savers and 
> those on fixed income (who are the most active voters) igniting world wide populist movements (e.g., Brexit and 
> support for candidates like Trump). It has also punished insurance companies, public and private retirement and 
> annuity plans and the very commercial banks the CBs have as their patrons pushing them to much higher risks in order 
> to survive. Only world equity markets have benefited and mostly through the acquisition of massive corporate debt to 
> finance stock buybacks mostly benefiting corporate officers and the wealthy. Perhaps the CBs motives are to eliminate 
> independent commercial banking leaving them as the only banks in their countries. Crazy?
>
> On the other hand, all these crazy CB moves have played well for those supporting bitcoin which has maintained its 
> value quite well this year as markets were roiled. If indeed there is, as I believe, a concerted effort to establish 
> a NWO digital currencies might become the linchpin of re-establishing economic and political liberty.
>
> Steve
>
> > Spotify is causing a major problem for economists
> > By Jim Edwards
> > Sep 25 2016
> > <http://www.businessinsider.com/spotify-problem-for-economists-2016-9>
>
>
> Dewayne-Net RSS Feed: <http://dewaynenet.wordpress.com/feed/>



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