EASY SOLUTION TO FIX OUR
HORSE S#IT ECONOMY
By Clarence Norr.
First I want to say HAY HOW SHE GO DERE to
all my pards! Many tanks to yous dat got me all those free
beers at Randy’s Grand Slam after I crooned da “Green
Green Grass at Home” at karaoke there, eh.
So here we are up to our necks in horse s#it
because too many gomers borrowed more dan dey could afford
to pay back, combined wit lenders who lent out way more
dan dey had to lend. What a rigmarole, eh!
Most all of da media excellentays got two groups to blame
da whole ball a wax on - borrowers who can't afford to repay
and lenders who lent unprofitably. Da fix word is "regulation"
as we supposedly go forward. Lately dat self described Einstein
“Bernanke” has been harpin’ on his knees
to be made head guy of lending and borrowing.. Dat’s
just da truth I’m telling,’ to bad if ya don’t
Da above stuff aint da root cause of da problem
and tings will get pretty much worse for most Americans
if da government rummies or even more worse, da private
international bankers at dat Federal Reservation, have da
main say and regulatory powers in da private economy.
So, eh.. what is da root cause you ask dis
Da root cause is da money system itself there. Da moola,
da dough, you bet.
No more green could be legally lent out den what was kept
in da vaults at da banks if we had a legal gold and silver
based money set up, eh. If banks did lend out more den they
were worth they would be committing fraud. So banks would
be far more careful lending out their own gold, and dat
of their depositor’s den they are these days lending
out our same dollar labor credits over and over again.
Dis means prices in da economy would remain stable because
of not being able to inflate da currency.
Stable pricing would mean borrowers would be more likely
to repay their loans. So den da market would regulate itself
like it had right up ‘til 1913. After 1913 we started
having nationwide booms followed by recessions or depressions
dat (interestingly) corresponded wit inflation and deflation
of da bucks in circulation. DUH?
easy solution right off da bat is dat you rummies
should study ‘til you understand Mathematical
Dis refers to da use of mathematical methods
to ape economic theories and analyze da wrongs posed
in economics. Da formulation and derivation of key
relationships in a theory make tings pop wit generality,
rigor, clarity and makes stuff more simpler, eh.
Dis math stuff lets economists form testable
propositions about complex subjects that can’t
be more betterly expressed informally. So, dis language
of math will let yous make tings more clearer and
specific. You’ll also see more clearly positive
claims about contentious tings dat would be impossible
Study these simple economic models
I slapped together for yous. You’ll be learnt stylized
and simple mathematical relationships dat will clarify any
assumptions and implications.
quantities as a solution to two reaction functions
in Cournot duopoly. Each reaction ting is expressed
as a linear equation dependent wit da quantity demanded.
Edgeworth box displaying da contract curve of an economy
wit two participants. Referred to as da "core"
of da economy in modern parlance, there are infinitely
a pretty lot of solutions along da curve for economies
wit two participants.
surface of da Volatility smile is a 3-D surface where
da current market implied volatility (Z-axis) for
all da options on da underlier is plotted against
strike price and time to maturity (X & Y-axes).
IS/LM model is a Keynesian macroeconomic model designed
to make predictions about da intersection of "real"
economic activity (yah know, spending, income, savings
rates, eh) and decisions made in da financial markets
(Money supply and Liquidity preference). Da model
is no longer widely learnt at da graduate level but
is common in undergraduate macroeconomics courses.
Last ting to keep in mind, eh,
don’t let those gomers play wit ya when they say dat
da use of formal mathematical techniques projects a scientific
exactness dat don’t appropriately account for informational
limitations in da real world. Dat rummy Hayek contended
Dat other piece a cake “Karl Popper”
taught dat da fundamental problem wit mathematical economics
was dat it was tautological. What da dummy meant was, once
economics became a mathematical discipline, it would cease
to rely on empirical truth and instead rely on axiomatic
proof. WHAT A SIMPLE S#IT!
Dese gomers got there heads deep up their butts,
eh. Study da stuff I learnt ya and before ya know it, tings
will be honky dory again I bet cha.
Dere ya go, eh! See yous at Da Slam!
Story by Jim Bellmore