The economy does grow almost endlessly even after setbacks like war and corrections. The capital base has risen steadilly at an average rate of about 2% since the start of the Industrial Revolution. In adition, the division of labor network is growing in its extent and its interconnections are increasing in complexity.
Even so, periods of capital consumption and even capital destruction have occurred, usually caused by either collectivist or authoritarian meddling in the market or the mass collective insanities called wars.
A recession is not a crisis. This is true, but recessions can turn into crises or be turned into crises, or merely herald the onset of crises. I think the fiat currency system is getting ready to collapse. This is not something that "just happens" like weather, desptite the economy being an unpredictable chaotic system. These corrections are driven by understandable cause and effect factors. The Keynesian "animists," with their "animal spirit" beliefs are desperate to evade such knowledge and deny it.
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Re: Not that surprising
Date: 5/8/11 23:10 (UTC)Even so, periods of capital consumption and even capital destruction have occurred, usually caused by either collectivist or authoritarian meddling in the market or the mass collective insanities called wars.
A recession is not a crisis. This is true, but recessions can turn into crises or be turned into crises, or merely herald the onset of crises. I think the fiat currency system is getting ready to collapse. This is not something that "just happens" like weather, desptite the economy being an unpredictable chaotic system. These corrections are driven by understandable cause and effect factors. The Keynesian "animists," with their "animal spirit" beliefs are desperate to evade such knowledge and deny it.