Something I wrote about many years ago: all production comes from mining something, growing something or manufacturing something.
"Financial engineering" is a stripping operation - that is, it's a tax and redistribution scheme on production - it is not production.
It just happens to be a private tax as opposed to a government one.
Thursday, July 29, 2010
Good Point
From the latest Denninger screed:
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1 comment:
Hey Matteo:
One of the seldom-addressed tenets of economics is that 'economic growth' per se is a function of two factors: population growth and productivity improvements. See this piece by bong guru Bill Gross, who points out that the sharp decline in population growth has pretty ominous implications for future economic growth and, possibly, for democratic capitalism as we know it (http://www.pimco.com/LeftNav/Featured+Market+Commentary/IO/2010/Gross+Privates+Eye+August.htm). Gross points out that over the past 30 years, we've used leverage to replace population growth. The fruits of the contraceptive/abortion culture and debt-based consumption are upon us.
Roberto of San Mateo
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