The Postcatastrophe Economy reviewed by the Christian Science Monitor

[FRED]

The Postcatastrophe Economy

Macroeconomic sage Eric Janszen makes a case that the same forces that caused the last economic crash will cause the next one too.

In his first novel, Ernest Hemingway describes the eternally inebriated Mike Campbell as having gone broke in two ways: “gradually and then suddenly.” With a government that followed its unwitting citizenry into a mire of debt (or perhaps it is the other way around), the same tale may very well be told of the United States. Though the dolorous realities of modern American life have suddenly become very clear, it feels like something we should have known all along. On the whole, the US has an outstanding public debt approaching 100 percent of its annual GDP; and 43 percent of families now spend more than they make with an average credit card balance of $8,000 per household.

In thepostcatastropheeconomy, venture capitalist and macroeconomic sage Eric Janszen reckons it is a usurious economic structure dominated by finance, insurance, and real estate (FIRE) that caused the last crash and will cause the next one too – as soon as oil prices see their next spike. more...

[Jay]

Re: The Postcatastrophe Economy reviewed by the Christian Science Monitor

He used TECI in the review. It will be interesting if the acronym takes off like FIRE did, and I'm sure you guys are watching. Discussions are enhanced by appropriate language which is lacking at the moment.

[EJ]

Re: The Postcatastrophe Economy reviewed by the Christian Science Monitor

He used TECI in the review. It will be interesting if the acronym takes off like FIRE did, and I'm sure you guys are watching. Discussions are enhanced by appropriate language which is lacking at the moment.

I attended a fund raiser last night. The crowd included an assortment of Boston financial community and political heavyweights. In one conversation my book came up. A well known, and apparently well read, bond fund manager said (paraphrasing), "You know, you won't see your term 'FIRE Economy' printed in the WSJ or Barron's or any major business paper, or uttered on Fox or CNBC. They don't like it. They know the power of that term, of naming a thing. It's a battering ram for knocking down the rotten door*. They're not going to arm the forces of change against their own interest by spreading that word around over their own channels of public opinion formation. Not going to happen.
You'll have to find another way."

Not the first time I've heard that, and it's too early in the book launch to confirm that FIRE is officially a four letter word to the mainstream business media, but I thought it was worth noting for future reference.

*He was making reference to John Kenneth Galbraith: "All successful revolutions are the kicking in of a rotten door."

[jpatter666]

Re: The Postcatastrophe Economy reviewed by the Christian Science Monitor

I attended a fund raiser last night. The crowd included an assortment of Boston financial community and political heavyweights. In one conversation my book came up. A well known, and apparently well read, bond fund manager said (paraphrasing), "You know, you won't see your term 'FIRE Economy' printed in the WSJ or Barron's or any major business paper, or uttered on Fox or CNBC. They don't like it. They know the power of that term, of naming a thing. It's a battering ram for knocking down the rotten door*. They're not going to arm the forces of change against their own interest by spreading that word around over their own channels of public opinion formation. Not going to happen.
You'll have to find another way."

Not the first time I've heard that, and it's too early in the book launch to confirm that FIRE is officially a four letter word to the mainstream business media, but I thought it was worth noting for future reference.

*He was making reference to John Kenneth Galbraith: "All successful revolutions are the kicking in of a rotten door."

I suggest creating a Facebook page for the book so people can become fans and "like" it. Get enough people, it starts getting noticed (might sell some books too!)

[seanm123]

Re: The Postcatastrophe Economy reviewed by the Christian Science Monitor

The MSM did not utter Shadow Banking very often either. First time I believe heard it spoken on TV/Radio
was on Bloomberg Radio by Tom Kean but only after the system blew up.

Perhaps the MSM needs a shorter obtuse anacronym like PPE

Paper Pusher Economy has a nice ring to it and does not really draw a big target on NYC as much as FIRE.

[bobola]

Re: The Postcatastrophe Economy reviewed by the Christian Science Monitor

Am curious to hear opinions of what has to change to get a ‘Postcatastrophe Economy’ functioning properly again?

Personally I don’t see how the American consumer will ever break the cycle of overspending and debt overload as long as there are money lenders willing to take a risk. I don't see this crushing debt cycle going away in my lifetime.

How does the average consumer ignore the endless bombardment of ads suggesting that we keep buying stuff we want but don’t need?

[Aetius Romulous]

Re: The Postcatastrophe Economy reviewed by the Christian Science Monitor

In my opinion, this consumer balance sheet issue is one of unbridled "corporatism". Consumerism has become a function of corporatism, and consumerism is the evil that batters the individual balance sheet.

Somehow, "capitalism" has been conflated in the greater public mind with "corporatism". Capitalism is the ideologically supported status quo, and virtually everyone considers corporatism a fundamental strut and bearing wall of capitalism. Nothing could be further from the truth. It is possible to have capitalism without corporatism.

So for me, the fix is to focus on trimming corporatism; removing corporate reach and breadth, redrafting corporate law and governance, removing open ended corporate profit harvesting, costing and including social externalities, Modernized, international GAAP and other accounting treatments, and a host of other changes small and large that I could go on about all day LOL.

No one ever mentions this, but to me it is all so obvious. It's not the silver bullet to be sure, but it is an issue that is laser sharp and very easy to come to grips with. It can be accomplished slowly and incrementally, and provides detailed progress and data points as it moves through the process - it is a measurable program. Finally, it is an issue with immense popular appeal and if framed correctly, is ideally suited for western democracies that are oh so very unsuited to almost anything else.

If I had any kind of large public platform, I would be on this like white on rice.

[bobola]

Re: The Postcatastrophe Economy reviewed by the Christian Science Monitor

I think the root cause of our current dire economic situation is that most people blindly accept the fantasy world that mass media & advertisers have created. Reality and personal responsibility take a backseat to the gotta-have-it-now mentality.

And I am reasonably certain that most folks who are in a bad financial situation based on questionable personal choices have a deep rooted mode of thinking that says ‘everything will work out in the end’ based on this same theme seen in endless movies and TV shows.

I don’t think capitalism is evil or wrong. The problem is human nature. Bernays understood it and sped us along the path to over-consumption.

“The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic society”.
Edward Bernays

[wayiwalk]

Re: The Postcatastrophe Economy reviewed by the Christian Science Monitor

Gotta love this site. Economic briefings and the helpful turning of a phrase to send home a message, and this thread has two.

"All successful revolutions are the kicking in of a rotten door."

In his first novel, Ernest Hemingway describes the eternally inebriated Mike Campbell as having gone broke in two ways: “gradually and then suddenly.”

I think the FIRE economy phrase will cross over - even the idea of tea party candidates has cross over quickly from "far fetched" to actual candidates on the ballots, in just a year, and the mainstream press really doesn't care for them, either.

[tsetsefly]

Re: The Postcatastrophe Economy reviewed by the Christian Science Monitor

I suggest creating a Facebook page for the book so people can become fans and "like" it. Get enough people, it starts getting noticed (might sell some books too!)

definitely this should be done, maybe include a couple of EJ's quotes from the topic Economics is not hard, for a couple of years I have been trying to get a couple of people to take a look at this site, for whatever reason everything failed till I recently only emailed them the quotes in that article.

Im referring to the FED chairman quotes followed by EJ's quotes, powerful stuff imo...

[Jay]

Re: The Postcatastrophe Economy reviewed by the Christian Science Monitor

"You know, you won't see your term 'FIRE Economy' printed in the WSJ or Barron's or any major business paper, or uttered on Fox or CNBC. They don't like it. They know the power of that term, of naming a thing. It's a battering ram for knocking down the rotten door*. They're not going to arm the forces of change against their own interest by spreading that word around over their own channels of public opinion formation. Not going to happen.
You'll have to find another way."

FIRE may not make it into the mainstream media for the reasons listed, but it is so catchy and accurate, and expresses every frustration of the populace, that I think it is here to stay. It will seep into tea party conversations slowly and then it will be everywhere. It is too perfect an acronym not to.

[Chris Coles]

Re: The Postcatastrophe Economy reviewed by the Christian Science Monitor

All we need to do is get this new interpretation of the word FIRE taken up as a new entry in The Oxford English Dictionary. I will see what I can do over the next few weeks.

[Chris Coles]

Re: The Postcatastrophe Economy reviewed by the Christian Science Monitor

Am curious to hear opinions of what has to change to get a ‘Postcatastrophe Economy’ functioning properly again?

Personally I don’t see how the American consumer will ever break the cycle of overspending and debt overload as long as there are money lenders willing to take a risk. I don't see this crushing debt cycle going away in my lifetime.

How does the average consumer ignore the endless bombardment of ads suggesting that we keep buying stuff we want but don’t need?

Hi Bob, you will remember that you made a vital contribution to my own debate that ended up as one of the closing chapters in The Road Ahead from a Grass Roots Perspective
http://www.chriscoles.com/page3.html

What you will not know is that Monday I replied to a UK Government Green Paper titled Financing a private sector recovery.
http://www.itulip.com/forums/showthr...ector-recovery

Enjoy!

[Chris Coles]

Re: The Postcatastrophe Economy reviewed by the Christian Science Monitor

Am curious to hear opinions of what has to change to get a ‘Postcatastrophe Economy’ functioning properly again?

Personally I don’t see how the American consumer will ever break the cycle of overspending and debt overload as long as there are money lenders willing to take a risk. I don't see this crushing debt cycle going away in my lifetime.

How does the average consumer ignore the endless bombardment of ads suggesting that we keep buying stuff we want but don’t need?

Hi Bob, you will remember that you made a vital contribution to my own debate that ended up as one of the closing chapters in The Road Ahead from a Grass Roots Perspective
http://www.chriscoles.com/page3.html

What you will not know is that Monday I replied to a UK Government Green Paper titled Financing a private sector recovery.
http://www.itulip.com/forums/showthr...ector-recovery

Enjoy!

[tsetsefly]

Re: The Postcatastrophe Economy reviewed by the Christian Science Monitor

aside from the book having a facebook page this site should have one and also if there could be link on the topics to link the topic to facebook it would be a good thing to do...