[ExI] What is Grace?

[painlord2k at libero.it]

Il 10/03/2009 22.35, Jeff Davis ha scritto:

> Gore might well have kept focus on OBL and prevented 911, but the
> economic house of cards?  I think that blind-sided everyone.
> My question is, How could that have happened?  I mean the boom and
> bust pattern is all but cliche, totally predictable, so where is the
> structural defect in "the system" that directs/enables humans to drive
> over the same cliff again and again?

The two bigger structural defecs of the economy in the modern developed 
world are:
1) Fiat money
2) Fractional reserve banking.

Fiat money let governments (via central banks) to inflate the credit and 
lower the interest rates of loans, fueling an economic expansion in the 
short time and an economic recession in the long time.

But the politicians are interested mainly in their short time political 
gains and not in the long time economic gains of their electors.
The electors don't know what is happening (thanks the MSM and the public 
schools) and don't understand the long terms effects on them of the 
policies the politicians support.

The main problem is that the people is become, in the last decades, too 
much interested in the short term gains and uninterested in the long 
term consequences. As Keynes said, "In the long term we are all dead". 
We live in the long term of Keynes and many others. They did a mess and 
we are paying their debts and their actions.

Mirco