Apologies: My Angry Rant Against Nonsense
Nicholas Jones, an ‘Analyst, Bourbon & Bayonets’, writes “Between a Rock and a Hard Place” on Oxbury Publishing HERE:
“All in all, what I’m trying to say is that an economy whose growth is based on liquidity expansions cannot last. It’s just like Adam Smith’s invisible hand. Our economy is not running at its equilibrium point and the further we get from that equilibrium, and the longer we stay there just means the invisible hand starts to push harder and harder. Natural forces are trying to push our current economy back to equilibrium. The excessive growth was the result of an expansion of liquidity (inflation), and in order to get back to equilibrium, liquidity must do the exact opposite and contract (deflation). So the question of do we inflate or deflate becomes a question of if we can’t inflate we deflate. The question of policy is do policy makers try and inflate or let it deflate? Let’s look at what happens in each scenario.”
Comment
Where did Nicholas Jones get his new ‘theory’ of the metaphor of ‘an invisible hand’, which has ‘it’ pushing (what?) ‘harder and harder’ (where?)?
Or, for that measure, where is his ‘theory’ of equilibrium from and why are ‘natural forces’(what happened to the metaphor?) only pushing ‘back’ (but not away)?
And (hopefully) sensible people pay good money for this ‘analytical’ advice?
Adam Smith, what nonsense is spoke in your name!
“All in all, what I’m trying to say is that an economy whose growth is based on liquidity expansions cannot last. It’s just like Adam Smith’s invisible hand. Our economy is not running at its equilibrium point and the further we get from that equilibrium, and the longer we stay there just means the invisible hand starts to push harder and harder. Natural forces are trying to push our current economy back to equilibrium. The excessive growth was the result of an expansion of liquidity (inflation), and in order to get back to equilibrium, liquidity must do the exact opposite and contract (deflation). So the question of do we inflate or deflate becomes a question of if we can’t inflate we deflate. The question of policy is do policy makers try and inflate or let it deflate? Let’s look at what happens in each scenario.”
Comment
Where did Nicholas Jones get his new ‘theory’ of the metaphor of ‘an invisible hand’, which has ‘it’ pushing (what?) ‘harder and harder’ (where?)?
Or, for that measure, where is his ‘theory’ of equilibrium from and why are ‘natural forces’(what happened to the metaphor?) only pushing ‘back’ (but not away)?
And (hopefully) sensible people pay good money for this ‘analytical’ advice?
Adam Smith, what nonsense is spoke in your name!
Labels: Invisible Hand
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