a couple of corrections before the week end and getting into something new.
first I said I though there was no politician in the usa who would advocate another war in the mid east right now... I was wrong.. newt gingrich is picking a fight with iran. .theres an article on the al-jazeerah site…. I should have thought of him. lol (better be careful what i say.. there is a chance that he could be the next president.)
the other thing not entirely as good as possible.. heheh. is the idea of debt to gdp ratio I was wondering about the other week..
it can certainly be above 10% .. in fact hearsay puts the Japanese one somewhere around 200%.. great britain in the 19th century was also about 200. though too early to say much about the ultimate consequence of japan's debt position ( though they talk about a lost generation)…, we can however draw some consulsions about the consequences for England. they invested in empire..... to be fair it played an important role in unifying the world.. but at very great expense to the world and to itself. the consequences are still unfolding. at last count the fundamentally unproductive finance industry into which the british economy had retreated was not looking too healthy. nor does the city look like being anything more than obsolete as quickly as power shifts to the asia pacific .. some geopolitics moves glacially .
good economists run rings around my understanding…. like the guys at goldman sachs.. wow. are those guys fast!!??? unbelievable!!! they don’t use hats these days… its black boxes.
however… they wont have to read this blog.. they’d already know.
public debt to gdp ratio maybe a bit like a mortgage for the home.. one can incur a debt in the multiples of annual earnings.. if the property is well ‘located’ then one should be happy to pay it off and grow old doing so.. or sell it and move on. if you were to blow all the borrowed cash on machine guns or some other pretty bauble/ bubble, you would certainly harm yourself and probably others as well. (more like blow-back than just blow)
its an obvious enough analogy if you think about it.
the buddha assures us that change is the only surety. important changes happen imperceptibly. to such an ephemeral as a human being, stasis/form is a powerful illusion but there are never two instants where the stars or even an atom of substance are in the same configuration. it progresses into infinity.
oh.. yes.. as for the Japanese gdp ratio..hehehe .. they borrowed trillions of yen (not quite infinity) to finance the bailout of insolvent zombie banks inflated with property bubbles from the 1980s already. the following generation are paying the price.
the japanese are resilient. hopefully something as good as the toyota hiace will come out of the next generation. (i used to have one.. it was great.)
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