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<p>[QUOTE=&quot;fatima, post: 1334590, member: 22143&quot;]The absolute failure of &quot;economic theory&#039; as taught and practiced in the USA/Anglo Saxon world is that it can&#039;t deal with an economy that doesn&#039;t grow.&nbsp; i.e. Contemporary theory does not believe that a successful, stable, well run economy that provides for society is possible unless it is constantly growing.&nbsp;&nbsp; Furthermore that growth always has to occur on a % basis and not on an absolute basis.&nbsp;&nbsp; The thought of anything different, anything that would suggest there are other alternatives is so alien to this entrenched mentality, that it simply can&#039;t be accepted or tolerated.&nbsp; </p><p><br /></p><p>As always, very simple mathematics says this contemporary thinking is wrong.&nbsp; Any system grown at a constant linear percentage basis ends up with exponential growth. The math can&#039;t be ignored, but we still have people who claim that we can continue to grow economies on a percentage basis.&nbsp; Exponentially growing systems always end with two possibilities.&nbsp; Growth abruptly stops or they continue on until there is a violent collapse. </p><p><br /></p><p>Since economists, governments and most investors ignore this, they end up looking for the government to get involved to &quot;fix&quot; the math when the real economy gets maxed out.&nbsp;&nbsp; They do this by creating money.&nbsp; &nbsp; It works for a while but it results in booms and busts that continue to get larger and more frequent until a system wide collapse comes.&nbsp; (when this happens paper promises get broken)&nbsp;&nbsp; When this no longer works, they start breaking laws, telling lies, and changing rules to protect the status quo.&nbsp; </p><p><br /></p><p>These events take generations to work out and that is why I say history is irrelevant UNLESS your history includes a long enough timeline to take this into account.&nbsp; The prudent investor needs to figure out where they with their life relative to this.&nbsp; &nbsp; Just because one&#039;s granddad did well by buying stock, doesn&#039;t mean your will.&nbsp; One HAS to understand what is driving the market today and not what drove it in 1950.&nbsp;&nbsp; Advice that stocks will always go up or house prices will always go up because they always have is just nonsense.[/QUOTE]</p><p><br /></p>

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