tag:blogger.com,1999:blog-11906042.post7126540659032229838..comments2024-03-30T00:09:27.602+13:00Comments on Not PC: What (and who) drives the economic system?Peter Cresswellhttp://www.blogger.com/profile/10699845031503699181noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-11906042.post-90035234034907303382016-09-29T08:40:03.515+13:002016-09-29T08:40:03.515+13:00I need to digest what the guy is saying... BUT..
...I need to digest what the guy is saying... BUT..<br /><br />My view is that with the nature of the current Monetary system, it is Credit that drives economic growth..... ( where the credit goes, is secondary )<br /><br />It is credit that drives both the business cycle , and the longer term "debt cycle'..<br />It is credit that brings forward both Investment and Consumption.<br />It is excessive credit growth that creates the distortions that lead to malinvestment and the boom/bust cycle ..( Thou I suppose thats more a function of human nature )<br /><br />In my model.. ( which is Ray Dalios' model)... supply is measured as "quantity" and demand is measured as "money + credit". ( credit is the most easily "changeable", variable )<br /><br />ie.. Where the economic world is currently at, and where it has come from ( GFC) ... is best understood from the perspective of credit growth and debt burdens...etc.<br /><br />just my thoughts...<br />roelofhttps://www.blogger.com/profile/09477578372828055473noreply@blogger.com