This simple graph explains why politicians around the world

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This simple graph explains why politicians around the world

Post by cronus » Wed Aug 26, 2015 10:55 am

http://www.smh.com.au/federal-politics/ ... j6x83.html

This simple graph explains why politicians around the world are struggling to revive their economies

There's a joke among economists that whenever you hear someone talking about a recession or stock market crash and they say "this time is different" then you know they don't know what they're talking about.

But global economies are experiencing something unique these days, and the fear gripping Chinese shareholders right now - which has infected Australia's stock market - is just one element.

The graph below illustrates why.
The chief economist of the Bank of England, Andrew Haldane, recently asked a couple of research assistants to produce a historical graph of global interest rates.
It exhausted them, but they found enough data to stretch their graph all the way back to the Babylonian empire of 3000 BC.

It was a monster effort, and we're thankful for it, because it proves things definitely are different today - we haven't experienced global interest rates this low for at least 5000 years.
This is significant because it helps explain why our politicians and econocrats have been finding it so hard to revive economies like Australia's in the wake of the global financial crisis.

All the economic models they've built to demonstrate how the world should work were constructed at a time when global interest rates were higher, and those models are failing them now.

None of their models demonstrate how the world works when global interest rates are this low.

We're in uncharted territory.

(graph - see article)


Read more: http://www.smh.com.au/federal-politics/ ... z3juwN0feI
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Re: This simple graph explains why politicians around the wo

Post by JimC » Wed Aug 26, 2015 9:26 pm

I have lost interest in economics. Now I know why...
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Re: This simple graph explains why politicians around the wo

Post by Brian Peacock » Wed Aug 26, 2015 10:48 pm

Interest rates are no the only thing at an all-time low.
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Clinton Huxley » 21 Jun 2012 » 14:10:36 GMT
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Re: This simple graph explains why politicians around the wo

Post by JimC » Wed Aug 26, 2015 10:58 pm

Brian Peacock wrote:Interest rates are no the only thing at an all-time low.
There's something very Scottish about your phrasing here... ;)
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Re: This simple graph explains why politicians around the wo

Post by Brian Peacock » Wed Aug 26, 2015 11:54 pm

JimC wrote:
Brian Peacock wrote:Interest rates are no the only thing at an all-time low.
There's something very Scottish about your phrasing here... ;)
Ya nay be wikkin ma tallwag weyah smart mooth un fancy troos.
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"It isn't necessary to imagine the world ending in fire or ice.
There are two other possibilities: one is paperwork, and the other is nostalgia."

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"This is how humanity ends; bickering over the irrelevant."
Clinton Huxley » 21 Jun 2012 » 14:10:36 GMT
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Re: This simple graph explains why politicians around the wo

Post by cronus » Thu Aug 27, 2015 2:27 am

There is another graph. I know it is hard to visualise. What you might call the slight lift before global collapse - all this talk of recovery for a few years that didn't amount to much, is ending. The reason no way ahead appears visible is because we are currently at the high point of the wheels journey. When the roller-coaster starts to slide downwards you'll quickly understand why it appears uncharted territory now - because the ground isn't. :read:
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Re: This simple graph explains why politicians around the wo

Post by JimC » Thu Aug 27, 2015 2:42 am

I shall have to start stock-piling gin, enough to ride out the collapse...
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Re: This simple graph explains why politicians around the wo

Post by Seth » Thu Aug 27, 2015 5:06 am

Here's an idea: Tell politicians and government economists to go fuck themselves and let the markets control themselves by leaving them the fuck alone. Politicians are what cause this sort of instability. Hang 'em all until they get the message to quit fucking about with our economies.
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Re: This simple graph explains why politicians around the wo

Post by rainbow » Thu Aug 27, 2015 1:35 pm

I call bullshit - Alfred E Einstein
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Re: This simple graph explains why politicians around the wo

Post by Brian Peacock » Thu Aug 27, 2015 11:57 pm

JimC wrote:I shall have to start stock-piling gin, enough to ride out the collapse...
Potatoes and junipers is all you need. How's your juniper bush doing btw?


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Rationalia relies on voluntary donations. There is no obligation of course, but if you value this place and want to see it continue please consider making a small donation towards the forum's running costs.
Details on how to do that can be found here.

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"It isn't necessary to imagine the world ending in fire or ice.
There are two other possibilities: one is paperwork, and the other is nostalgia."

Frank Zappa

"This is how humanity ends; bickering over the irrelevant."
Clinton Huxley » 21 Jun 2012 » 14:10:36 GMT
.

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Re: This simple graph explains why politicians around the wo

Post by JimC » Fri Aug 28, 2015 12:24 am

I could have sworn there was no photographer around on that day... :doh:
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