Friday, May 10, 2013

Keynesianism

A good article that disproves the Keynesian economic policies being implemented right now in the Western world:
Why Keynesianism Works Better in Theory Than in Practice

For me it's enough to look at the examples:
  • If stimulus was the solution, along with deficit spending and baling out banks and companies, then Japan would not have so-called "zombie banks" and "zombie companies", as well as 2 "lost decades": the Japanese stock market is still 60% below where it was 24 years ago! Talk about long-term investment in stocks being less risky...
  • If money printing was the solution, Zimbabwe would have been the richest country in the world in 2009. I know what I'm talking about, because "At its November 2008 peak, Zimbabwe's rate of inflation approached, but failed to surpass, Hungary's July 1946 world record." (see Most severe hyperinflations in world history)
  • If statism was the solution, along with more regulation, more taxes, capital controls, nationalization of pension funds and bank accounts, then North Korea (where everything is controlled by the state) would be a very rich country, and the Soviet block would not have failed miserably.

Sunday, March 3, 2013

Risk INCREASES Over Time!

This paper disproves the popular opinion that the risk of investing in volatile assets like stocks decreases as the time horizon increases:
John Norstad: Risk and Time

It's quite a long article, so if you don't have the time, just spend 1 minute to look at the chart in the Appendix:
Appendix - A Better Bar Chart Showing Risk Over Time

Sunday, January 27, 2013

Nanny state

What happens if the modern "nanny state" provides the wrong incentives to society? Here is a nice example:
Unemployed single mother on benefits who spends £2,000 on Christmas with 20 presents for each of her children

Tuesday, June 26, 2012

Soros: Three Days to Save the Euro

Spiegel Online published the following interview with George Soros today. This is his most powerful rebuttal to date of the German position:

George Soros on the Euro Crisis: 'A Tragic, Historical Mistake by the Germans'

Sunday, December 18, 2011

Jim Rogers on GBTV talking about US economy, US history of economics, world economy etc.
It's about 30 min in 3 parts.
Jim Rogers on GBTV
Jim Rogers in Salzburg on Sep 22.
The video includes questions from the audience, including myself.
It's about 50 min in 4 parts.
Jim Rogers in Salzburg on Sep 22 (in 4 parts)