{"id":9482,"date":"2015-06-28T06:28:00","date_gmt":"2015-06-28T11:28:00","guid":{"rendered":"http:\/\/olduvai.ca\/?p=9482"},"modified":"2015-06-28T06:28:00","modified_gmt":"2015-06-28T11:28:00","slug":"the-greek-butterfly-effect","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=9482","title":{"rendered":"The Greek Butterfly Effect"},"content":{"rendered":"

The Greek Butterfly\u00a0Effect<\/a><\/h3>\n
\"butterfly\"<\/a>Many times nothing happens for a long time. Then all of a sudden everything happens at once. Like a\u00a0dam break. It builds slowly and then it bursts. Example: Who would have ever thought the Confederate flag would be taken down across the South during the same week that\u00a0a rainbow flag<\/strong><\/em><\/a>\u00a0is symbolically hoisted across the entire country? Just because things\u00a0seem unthinkable doesn\u2019t mean they won\u2019t happen.<\/p>\n

Take the global debt construct\u00a0as another example. For decades the world has immersed itself in ever higher debt. The general attitude has been one of indifference. Oh well, it just goes higher. Doesn\u2019t really impact me or so the complacent rationalize.<\/p>\n

When the financial crisis brought the world to the brink of financial collapse the solution\u00a0was based on a single principle:<\/p>\n

Make the math workable.<\/strong><\/p>\n

In the US the 4 principle \u201csolutions\u201d to make the math workable were to:<\/p>\n

1. End mark to market which had the basic effect of allowing institutions to work with fictitious balance sheets and claim financial viability.<\/p>\n

2. Engage in unprecedented fiscal deficits\u00a0to grow the economy. To this day the US, and the world for that matter, runs deficits.\u00a0Every single year. The result: Global GDP has been, and continues to be overstated as a certain percentage of growth remains debt financed and not purely organically driven.<\/p>\n

3. QE, to flush the system with artificial liquidity, the classic printing press to create demand out of thin air.<\/p>\n

4. ZIRP. Generally ZIRP has been sold to the public\u00a0as an incentive program to stimulate lending and thereby generate wage growth & inflation. While it could be argued it had some success in certain areas such as housing, the larger evidence suggests that ZIRP is not about growth at all.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/article>\n

<\/h1>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

The Greek Butterfly\u00a0Effect Many times nothing happens for a long time. Then all of a sudden everything happens at once. Like a\u00a0dam break. It builds slowly and then it bursts. Example: Who would have ever thought the Confederate flag would be taken down across the South during the same week that\u00a0a rainbow flag\u00a0is symbolically hoisted […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[6774,195,233,279,1167,6775,2598,418,5008,672,6776,753],"class_list":["post-9482","post","type-post","status-publish","format-standard","hentry","category-economics","tag-corrections","tag-debt","tag-ecb","tag-eu","tag-greece","tag-greferendum","tag-grexit","tag-imf","tag-math","tag-referendum","tag-spy","tag-stocks"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9482","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9482"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9482\/revisions"}],"predecessor-version":[{"id":9483,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9482\/revisions\/9483"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9482"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9482"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9482"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}