'Bailout psychology' destroying the economy

[petertribo]

Re: 'Bailout psychology' destroying the economy

I like the concept "debt mine", as used in "Iceland is the canary in the debt mine."

Mining debt is what FIRE is all about, perhaps my little phrase could become useful I was just thinking.

Simple minds (like mine) and all that . . .

I have often looked at Debt as a Resource and that you mine it. And, like most Resources, it can be exhausted.

Justice is the cornerstone of the world

The same is true of the Rule Of Law on which Justice is based. You can mine that too but, sooner or later, the consequences begin to show. One of the failings of Economics is that we have no Rule Of Law Index capturing the range of White Collar Crime that has caused this Disaster. Over the years following this, I have only seen one or two analysts cite the mining of the Rule Of Law as being at the center of the problems.

[cobben]

Re: 'Bailout psychology' destroying the economy

"the mining of the Rule Of Law as being at the center of the problems."


I hadn't thought of it quite that way, but yes, I agree. By the way, Martin Armstrong has quite a discussion on the rule of law in his new piece "Destroying Capital Formation". http://jsmineset.com/index.php/2009/...eral-equities/

I do like my "signature", and that is exactly why I chose it, as being most "timely", though I came across it quite by chance - on the 2008 Swedish commemorative gold coin I picked as an avatar.

I would translate the Swedish more like:

"The Foundation of this Earth is Righteousness"

(with the more biblical meaning of righteousness = justice.)


But I decided to use the "official" Riksbank translation as they have it on their site.

http://www.riksbank.com/templates/Page.aspx?id=10886

"On the reverse (the back) of the coin there is a picture of a sunflower, symbolising Selma Lagerlöf’s interest in nature. On the upper edge of the coin is the quotation “DENNA JORDENS GRUNDVAL HETER RÄTTFÄRDIGHET”, (Justice is the cornerstone of the world) taken from the short story “The Outlaws” in the ”Invisible Links” collection from 1894. "