Are you having as good a weekend as I think you are Richard?
P.
----- Original Message ----
From: R.C.Macaulay <[EMAIL PROTECTED]>
To: vortex-l@eskimo.com
Sent: Saturday, November 17, 2007 8:35:29 AM
Subject: [VO]: Economic models
Blank
BODY {
MARGIN-TOP:25px;FONT-SIZE:10pt;MARGIN-LEFT:25px;COLOR:#000000;FONT-FAMILY:Arial,
Helvetica;}
P.msoNormal {
MARGIN-TOP:0px;FONT-SIZE:10pt;MARGIN-LEFT:0px;COLOR:#ffffcc;FONT-FAMILY:Helvetica,
"Times New Roman";}
LI.msoNormal {
MARGIN-TOP:0px;FONT-SIZE:10pt;MARGIN-LEFT:0px;COLOR:#ffffcc;FONT-FAMILY:Helvetica,
"Times New Roman";}
Howdy Vorts,
Watching the world financials try to function can give one pause. There is
a problem.
The world has been operating on model based on a quasi-Keynesian theory of
economics since FDR's New Deal of the 1930's. That model served until JFK paid
his debt to big labor and LBJ used credit to finance Vietnam instead of taxes.
The US debt overload plus the beginning of rise of the world enonomy forced a
reshuffle by Nixon off the traditional peg of the US dollar to gold at $ 35
dollars/troy ounce gold.
Since the Civil War ended in 1865, the nation has had three weak
models prior to the Keynesian.The Keynesian economic model was effectively
obsoleted at that time in 1973.
The instability in the financial markets we are experiencing can be
blamed on a host of causes.. but .. at the root.. the reason is the lack of a
new model theory.
An Isaac Newton of money theory could rise.. or .. a Ghengis Kahn.. we will
know soon after the 2008 election.. if we have another election.
Richard
