Kombinat!: Third Grade Math Argentinian Spectacle

Monday, September 26, 2005

Third Grade Math Argentinian Spectacle

Fool.com: Berkshire Hathaway [Post of the Day] September 23, 2005:

“It is nothing more than third grade math...we are creating money and credit at a much, much faster rate than output. Claims against output are increasing at the rate of 20% per year and are growing 3x faster than output grows on a nominal basis. It now takes five units of debt to get one incremental unit of GDP...the productivity of money and credit is crashing from its over-issuance.”

... As Munger said at the 2004 annual meeting-“If Argentina happens here, we can't save you”

¶ 3:35 PM

Comments:

"We can't save you even if Argentina doesn't happen here."

# posted by Juke : Thu Oct 06, 11:37:00 PM

I think I am noticing this myself as well. We are incapable of noticing that the ground beneath our feet is missing and we are being dragged by the winds of spending beyond our means forgetting the wind will stop and gravity will take effect slamming us against the rock. A deadly adventure. Is it worth it? At this point this is irrelevant because we as a nation, if such a creature could still breathe, have forgotten where we stood before we started jumping up in the air to catch those deadly flights.

Those who hit the ground will be replaced. As we see in New Orleans example so many displaced, crammed in the cities of Texas and Oklahoma and Georgia, a cheap labor for the Kombinat! machine.

# posted by Kombinat! : Sat Oct 08, 01:42:00 PM

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