How prices are determined
Everyone knows that in a market economy prices are determined by supply and demand. But what does this mean? It means that value is subjective. Value has no instinct measure.
Diamonds and water paradox - price
Without water we would die. But its cheap or free. But Diamonds are not connected with life, rather [...]
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Russian Gas and Ukraine
I live in Poland and this is my analysis of the Russian gas situation in Ukraine:
1) I do not trust Russia. Why? 500 years of history, and if you think Russian political mentality will change because they call themselves a democracy your wrong.
2) Ukraine wants to be Ukraine, and has is the [...]
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Tags: Russian economy
Although everyone speaks about Adam Smith, few people read him. I love reading Adam Smith as you find something that is not in common wisdom. Anyway, here is Adam Smiths invisible hand quote. So many people talk about the invisible hand but in the Wealth of nations it only appears once.
he intends only his own [...]
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100 years ago a Swedish Economist explained why the current monetary stimulus does not work.
Knut Wickell believed there was two rates of interest. 1) the natural rate of interest and 2) the lending rate.
Very simple idea that is forgotten by geniuses on Wall Street. If you read Knut Wicksell’s idea about the cumulative process, you [...]
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America in Crisis
The economy is down. And 2009 will could bring massive layoffs as companies are not spending. But still I am always a crisis skeptic. Why? I live in Poland. I visit my family in Ukraine. I am American. I see how people in the villages do not have water and bring water from [...]
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Russian economy
I live in eastern Europe and I see what has happened. The Russian economy is destroyed by the drop in oil. Moscow city projects are at a halt and it is panic. Russia will not go back to the stone age but close.
Russian de-privatization of the economy
This was a code word for giving Russian [...]
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The great depression
The great depression was 10 years of 20 +% unemployment with the government powerless to do anything to help, despite fiscal stimulas.
2009 depression
It will not happen. 2009 might be end the year with 3% growth and 6 % unemployment and average household income above 50,000 dollars a year. That is a crisis? I [...]
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Tags: Depression
Bailout
If we bailed no one out then what? The economy would fall and reorganizes. Assets will be cheap. Someone like me who has been conservative with spending and credit could buy a nice house cheap and those who were not, would be in my place. Further I could use the reserve capital I have on [...]
Continue Reading Bailouts reinforce the status quo
There is no economic crisis, only a redistribution of wealth. The government bailout is nothing more than a reinforecement of the status quo. That is the people who have power. Yes when the government helps large companies they hurt me. I have been someone who has been conservative and has cash. If the bad companies [...]
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Tags: economic crisis
Why the US economy is about to take two steps forward. Poland is the key to understanding why.
Continue Reading Why the US economy is not over? the answer is Poland.
Tags: Economy, Poland, US Economy
