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[–] ForTheUltimate ago  (edited ago)

can't survive without your intervention.

I just did. The investments you caused into being simply cannot be profitable at the higher interest, thus raising interest rates causes a recession.

I already gave you some good examples on why it's easier to exploit resources at first. I recommend you think on those again. This also explains why modern economies can't make this growths in production.

What good examples? I require a rational explanation. No it does not. Your explanation is sorely lacking.

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[–] CanIHazPhD ago 

You say my explanation on why it's easier to pick up a gold nugget from the ground than dig a mile into the earth or get oil from a shallow reservoir than from shale is sorely lacking and then you post this

I just did. The investments you caused into being simply cannot be profitable at the higher interest, thus raising interest rates causes a recession.

Also your "explanation" does not fit reality, look at the interest rate from 1946-1981, it has the greatest rise since 1800, from ~3% to ~10% Interest, and look at gdp growth for those same years GDP growth, no recession. Now, if you look at 1920 to 1946, interest rates had a slow but steady decline and you have a recession. If you look at 2000-2016 you'll see a sharp decline, and there is another recession. Exactly the opposite of what you state.

I'm starting to see that you are just covering your ears and going "nah nah nah, I can't hear you".

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[–] ForTheUltimate ago  (edited ago)

why it's easier to pick up a gold nugget from the ground than dig a mile into the earth or get oil from a shallow reservoir than from shale is sorely lacking and then you post this

Stop being retarded. The question isn't how it's easier to pick a gold nugget. the question is how that explains your conclusion that a long run growing and deflationary economy is only possible with easy gold nuggets to pick.

Also your "explanation" does not fit reality, look at the interest rate from 1946-1981, it has the greatest rise since 1800, from ~3% to ~10% InterestPNG, and look at gdp growth for those same years GDP growthPNG

This doesn't disprove my theory. There were simply not enough malinvestments to overcome growht opportunities.

Now, if you look at 1920 to 1946, interest rates had a slow but steady decline and you have a recession.

This again does not disprove my theory. My theory doesn't say that falling interest rates prevent all recessions.

https://www.macrotrends.net/2015/fed-funds-rate-historical-chart

Please find me a better source.

I'm starting to see that you are just covering your ears and going "nah nah nah, I can't hear you".

Even if it were true that's a lot better than what you're doing.

If you look at 2000-2016 you'll see a sharp decline, and there is another recession. Exactly the opposite of what you state.

Now this is completely disengenious. I know have the intellectually moral duty to disbelieve your claim about 1920-1946 given that interest rates rose from 1% to 4%+ from 2000 to 2007.

Atleast I am not a lying coward.