Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

Many Topics Including The Oldest Dinar Community. Copyright © 2006-2020


    Connecting the Dots

    Lobo
    Lobo
    Moderator
    Moderator


    Posts : 28411
    Join date : 2013-01-12

     Connecting the Dots Empty Connecting the Dots

    Post by Lobo Tue Jan 03, 2017 5:15 pm

     Connecting the Dots All-Connected
    QUESTION: I find your explanation of how everything is connected very insightful. So events go nuts in Europe and that sends capital fleeing to America as in World War I and II. Am I correct in saying it is not possible to manage an economy in isolation?
    Thanks for making my mind work
    HW
    ANSWER: Correct. Everything is connected so what happens in one nation influences capital flows globally. It was World War I and II that took the USA from bankrupt in 1896 to the world’s largest economy by 1949. It is impossible to carry out any policy domestically that is counter-trend to the world economy. You can even put in capital controls to try to stop the movement of money. That fails to work as well. Even Communism collapsed for it was unsustainable. Adam Smith’s Invisible Hand prevails – nobody has ever beaten it long-term.
    Producers of eggs got together to try to defeat the business cycle and smooth out the price of eggs. That blew up in their face into a class action lawsuit. Nobody can stop the cycle for everything is captured within it from weather to war. Some people will never get it. They want to believe government can make things better so they remain blind to events outside their domain.
    https://www.armstrongeconomics.com/armstrongeconomics101/basic-concepts/connecting-the-dots/

      Current date/time is Tue Apr 23, 2024 4:30 pm