When the Sums Simply Don't Add Up

sums-dont-add-upWe have previously on this site drawn attention to the fact that the booming stock market, indeed stock markets around the world, don’t make sense when you look at the  depressing underlying economic factors such as company profitability, productivity, employment statistics and commodity prices. Indeed, logically, far from booming these markets should be stagnant if not in chaotic retreat.

Booming stock markets are but one issue where the sums simply do not add up when examined in the crisp cool light of day.

Another is France in so far as it is regarded as a safe haven for investment despite the obvious economic factors which suggest that it is anything but safe!

Furthermore, the age old laws of supply and demand, particularly in terms of price discovery, no longer appear to function as gold is driven down at a time when demand is going through the roof.

How does one “square” these particular circles?

An interesting video by Grant Williams explores these economic “impossibilities” (or perhaps “absurdities” would be more apt) in greater detail here:-

 

 

 

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6 Comments

  1. Keep putting this on this website and we will soon attain the viewing figures the BNP used to brag about ,excellent stuff admin .well done

  2. Great idea, let’s delude ourselves into thinking that the stock market is about to crash, leading to economic collapse and political crisis that will sweep the nationalist movement into power. Meanwhile, those of us ‘in the know’ can short the stock market and make a fortune. Why bother formulating a realistic economic policy when gaining power is that simple?

    • RE: “let’s delude ourselves into thinking that the stock market is about to crash” – so what’s holding it up then except BoE money printing – hardly “delusion” I think. True though – we need to formulate a cpmprehensive economic policy.

      • It’s delusional because nationalists have been forecasting economic collapse for the past 50 years and nothing has come of it. Does anyone really believe that the establishment is just going to accidently let the economy collapse so that we can walk into power and smugly proclaim ‘I told you so’?

        • Yes but we have not had a situation like this in the past 50 years (if ever?). No the Establishment is not going to accidentally let the economy collapse, they are desperately trying to avoid it, but events suggest that they have no magic bullets other than to continue to “print” money until there is a “major correction” in the form of systemic sovereign default. What other outcome is possible – unless we, the developed nations, have twenty years of record GDP performance of at least 7% per annum – something that this country, for one, has never previously experienced. Even if the bank rate were to increase by a few percent then this country would have a mega problem just servicing its current levels of borrowing, perhaps even default. If you believe that they can turn the economy around in the face of stagnant GDP, ever rising borrowing at at time of historic low interest rates then may I suggest you have a word with George Osborne as I am sure he will be more than delighted to meet you because, clearly, he does know how we are going to get out of the mess.

  3. The difference between a pressure group like say Greenpeace or even our fellow patriots at Britain First and a serious political party is this – political parties have a comprehensive set of economic policies. We need to stress our economic policies right from the start.

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