Shadow minister

Thank you for your informative reply, as I think we are finally getting somewhere.

So you have a shiny new factory that makes what exactly, and I know a good number of tradesmen who make similar money. However why exactly cant a company in China do what you are at a tenth of the labor cost. As you said all prices are set by the market, but if your costs are higher than the market will bare you have to either, cut cost, merge, or go out of business. The idea that you are immune from this basic law of economics is just plain silly. I do understand the various companies that worked on a cost plus basis, as I worked for a couple of them in the past.

The GFC was caused by fraud in the international banking system, and that is still going on today. You are right, it was the” collateralized debt obligation bonds” in the housing market that was part of the problem, but only a part. Now around the world we have central banks”expanding their balance sheets” (printing money) to buy up chunk bonds to keep the world’s economy afloat.

Your point 2 is correct, but only part of the story.

Thirdly, I do understand why you believe, everything in the economy is improving, because you are still reading the economic funny papers that I referred to in my last post. If we are not in a recession worldwide why are the interest rates in the UK the lowest in over three hundred years, and why is the ECB buying company bond at negative interest rate? There are many other examples on the net of dodgy financial transaction that will create a worse GFC than the last time.Perhaps if you expanded your channels of information, and asked a few more questions, you might get a better understanding of the economic morass that the world is in.

TBC

So you have an economics degree which I am pleased to hear and not surprised. However as you said the issue is understanding the basic laws of economics. And these are supply, demand, and liquidity. There is no shortage of any of those elements in the world today, so the markets should be humming at the historical interest rate of 4-5%, so why aren't they.

And finely please tell me what particular conspiracy theory, it is that you think I believe.
Chris

Bazz
You are of course correct regarding the cost of energy of extraction, and the worlds inability to pay for the reality of dwindling cheap supply .However as important as energy is to the economy, I feel we need cashed up consumers even more. The level of debt, caused by tax loop holes has caused a massive distortion that will take years to resolve, if ever.

Personally I dropped out nearly ten years ago, and now live in a third world country with low population density. I married a local who has a small farm with cows, pigs, chickens and ducks. We grow most of the food for our stock, which we sell to pay our bills. We have no debt and should be able to cope with what comes next. I hope you have similar plans in place, is it is going to get really nasty in the first world.
Chris