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Re: Real Life 2010: One
I was wondering, did anyone else notice that the rate of decline in unemployment after each recession is lower, leading to structurally higher unemployed base for the beginning the next boom/bust cycle? Another question is can a fiat fractional reserve banking system with ~20% debt service survive with structurally higher unemployment each boom/bust cycle and at what point would the defaulting on existing debt and lower incomes make it impossible to service a significant portion of the outstanding debt and start either a collapse of the economy or the currency, through sheer mathematics. Obviously, the private sector would fail first since it can't create bright shiny new greenback out of thin air for itself.
Originally posted by metalman
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yep. what if ej's right about the job market takes > 10 yrs to recover?
from Asylum Markets of the post FIRE Economy – Part II: Breaking the Rules - Eric Janszen
what's the youth unemployment rate in the usa now? 20% vs 10% in 2006?
11 mil still unemployed in 2013? that's plenty of time to grow the criminal/underground economy... pull in youth to a life of crime.
if we keep the expansion & refinement of the criminal class going for a decade & what will we get? prostitution. drugs. gangs... but smart & capable, embedded in the culture & institutions like in russia.
that's my worry.
from Asylum Markets of the post FIRE Economy – Part II: Breaking the Rules - Eric Janszen
what's the youth unemployment rate in the usa now? 20% vs 10% in 2006?
11 mil still unemployed in 2013? that's plenty of time to grow the criminal/underground economy... pull in youth to a life of crime.
if we keep the expansion & refinement of the criminal class going for a decade & what will we get? prostitution. drugs. gangs... but smart & capable, embedded in the culture & institutions like in russia.
that's my worry.
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