Howard Strickline: Good morning, class. I would like to introduce a conceptual framework in economics. Yes, this will be as exciting as it sounds! But first, some background.
In the United States, when I was in your shoes, two schools of economic thought held sway. The Saltwater School, hailing from institutions such as Harvard and Cal Berkeley. Named by the proximity of its champions to the ocean coasts.
The Freshwater School marshals institutions like the University of Chicago and Northwestern. I'm sure you can pick up the naming pattern.
The Saltwater School often espoused the Keynesian concepts of counter-cyclical spending. A lesson from the Great Depression, you will often still hear its echoes. During an economic downturn, the government must step in and stimulate demand. "In the long run, we are all dead!"
From the Freshwater School, lessons were drawn differently. Friedman argued laissez-faire government policy is more desirable, and policy should focus on such elements as the nation's monetary policy. "Inflation is always and everywhere a monetary phenomenon!"
I would like to borrow a term from James K. Galbraith: Backwater Economics. My Backwater School of Economics will argue that both schools' macroeconomic approaches are time-limited and trend towards instability.
Everything winds up in the Backwaters sooner or later. But these topics are ignored because they are visited so infrequently. They are the times that matter most! Politicians, economists, prognosticators, and traders will argue over employment at 5 percent vs 6 percent or GDP growth at 2 percent vs 4 percent, when the whole house of cards can collapse in a matter of weeks! Management during these times is seen as anomalous, but there are so many examples, I intend to show that they are inevitable. History can proceed linearly for long periods, then change suddenly.
Welcome to the Backwaters. You'd best have brought your waders, because we're in them now!
#economics #saltwaterschool #freshwaterschool #backwatereconomics #keynes #miltonfriedman #kennethgalbraith
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Gustav: Dressed up in anti-money laundering language, a prominent US Senator is attempting to float legislation that is so broad it would effectively ban Bitcoin in the United States. Backed by Wall Street Banks, there have been renewed calls for the US Government to do something about Bitcoin. Like a swarm, thousands of individuals and groups have been organizing against them. Based upon the Senator's track record, it is unlikely to pass.
But this pattern is repeated constantly, to the point that it is now the norm in that country across the ocean. Industry insiders propose legislation that protects their business models. They contribute to politicians who champion their issues. The legislators outsource the writing of any laws to industry experts. And they then attempt to pass them, usually without reading them.
The only things that has prevented the United States from accelerating into full, plutocratic oligarchy is the gridlock caused by political divisiveness.
Bitcoin adoption must increase. The only reliable counter to this in the intermediate term is to make Bitcoin a political third rail. Have so many people own it, no politicians dare to meddle with it.
In the long run: The tightly coupled relationship between the Central Banks, National Treasuries, and large investment banks must be broken.
Wall Street must be reformed, and the concept of "Too Big to Fail" must become anathema.
#bitcoin #politics #wallstreet #hodl #keepstacking #getoffzero #bitcoinadoption
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Sparkles: Got any thoughts on Army-Navy?
Mouth: Navy all the way. Army is way too slow and weak in the air.
Sparkles: Should be a good game!
Mouth: Game?
#gonavybeatarmy #usnavy #armynavygame
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Jesse: You gonna stay up and watch the game?
Manny: Nah, I think I'll just catch the replay tomorrow morning. Sucks to be in the wrong time zone for it.
Randolph: You should stay up for it, only comes once a year. Watching it live is way better. Otherwise you'll rob yourself of the drama and the rush of the inevitable victory.
Manny: How do you know we'll win, though?
Jesse: Football is a contest over land. Yards and inches, battle lines. Muscle and grit.
Randolph: Exactly. Skip the synchronized swimming competition. Leave that for the Navy. This one's mando.
#goarmybeatnavy #usarmy #armynavygame
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