To define false economy, first we must define economy. It comes from the Greek, meaning managing a household.
Managing a household necessarily means commerce in the market as well, and that would be voluntary association. Food, beverages, clothing, household goods, medicine, education, doctors, you name it.
In the measure associations are not voluntary, the economy is false. If you are obliged to buy insurances, or your supply of whatever is distorted by subsidy or regulation, each equally deleterious, the economy is false.
That every major bank, at the ned of every work day, goes to the FED for yet another bailout for poor management, is proof of false economy, and how fundamental ours is.
False economies show malinvestment, often in the of misallocation in what is not needed or over-investment, yet another Real Estate office.
The locus of our false economy is the FIRE component, Finance, Investment and Real Estate. Assets are so ill-assessed that farmers cannot make any money on the one hand, but can sell their land for a fortune, and do so. When your food supply is unprofitable, you have a very risky economy.
Our GMO corn is highly subsidized and is unsustainable as a business model. Our good food demands only people who agree to be poor. The false economy is very dangerous, and demands land redistribution.
What is out system for this? In capitalism, there is no mechanism.
Mish doesn't mention false economy, but he elucidates it here....
Feel free to forward this by email to three of your friends.
Managing a household necessarily means commerce in the market as well, and that would be voluntary association. Food, beverages, clothing, household goods, medicine, education, doctors, you name it.
In the measure associations are not voluntary, the economy is false. If you are obliged to buy insurances, or your supply of whatever is distorted by subsidy or regulation, each equally deleterious, the economy is false.
That every major bank, at the ned of every work day, goes to the FED for yet another bailout for poor management, is proof of false economy, and how fundamental ours is.
False economies show malinvestment, often in the of misallocation in what is not needed or over-investment, yet another Real Estate office.
The locus of our false economy is the FIRE component, Finance, Investment and Real Estate. Assets are so ill-assessed that farmers cannot make any money on the one hand, but can sell their land for a fortune, and do so. When your food supply is unprofitable, you have a very risky economy.
Our GMO corn is highly subsidized and is unsustainable as a business model. Our good food demands only people who agree to be poor. The false economy is very dangerous, and demands land redistribution.
What is out system for this? In capitalism, there is no mechanism.
Mish doesn't mention false economy, but he elucidates it here....
Feel free to forward this by email to three of your friends.
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