Monday, February 8, 2010

A boring math lesson to explain exponential growth: How does it apply to us? Keynesian policy of increasing the supply of money (& credit), at a faster rate than the increase in real underlying wealth, eventually leads to money supply (& credit) growing exponentially. At that point, the process has to stop, or money that is unbacked by tangible wealth reaches its intrinsic value (zero).....but never mind, because eventually we're all dead anyway.

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