The economics professor

And given that the 500 year history of interest rates has been downward the current near zero is inevitable and sustainable

A failure to distinguish between nominal and real interest rates has been the death of many a policy and plan. Real interest rates today are substantially negative. Nominal rates are rather different and have been over time as well.

11 thoughts on “The economics professor”

  1. I know that it’s unfashionable to be blunt about mental health but the twat is sinking into insanity.

  2. Interesting that UK Real rates have been negative since about 2009. And the great Mark Carnage was doing his clown act: inflation? What inflation? Meanwhile, over in Euro Land house prices have been going gangbusters, at least in Netherlands, France and Spain. It’s looking as if it’s a multi-speed economy for the disfunctional 27

  3. The levels of ignorance amongst people who would consider themselves “educated” is astounding.
    I got this the other day along with a link to something seemed to be about the use of magnetic fields in organic molecular chemistry. A technique that was possibly used when they were creating Covid vaccines.

    Technical references for why people are having magnets and metals sticking to them after vaccination….

    It was difficult to know what to say. This is someone received education at a highly reputable public school. And two days later is still trying to defend the proposition. It does have the authentication of a Dr Jane Ruby behind it. Whose doctorates appear to be in education & psychology. I can’t help but think that maybe she’s making a good living out of the knowledge she gained in the subjects.
    Which is why I wouldn’t dismiss the possibility the P3 of Ely is a gig. There are a lot of remarkably stupid people out there & they can make very rewarding grazing.

  4. Incidentally, the link was sent me was this one

    I can hardly say I have any expertise or even knowledge in the field of cellular biochemistry or molecular manipulation at nanometre scales. But I could at least get a hang of what it was about. And there was nothing about effects at the gross level being claimed. FFS! At least I’ve heard of the inverse square law!
    Which illustrates the problem with refuting the P3. Anybody understands the subjects he pontificates on is going to understand he’s talking bollocks. But the people who get taken in by him are not going to understand his errors, even if they’re explained to them. He could (& does) point them in the direction of some learned treatise with a claim it supports his argument, when it does completely the opposite. It has the nature of religious debates. Murphy followers have Faith in murphynomics. To the Believer, anything can be regarded as supporting the Faith.
    It really is worth reading about Scientology. There’s so many similarities.

  5. Dennis, He Who Knows The Difference Between A Machine Gun And A Semi-Automatic Rifle

    And given that the 500 year history of interest rates has been downward the current near zero is inevitable and sustainable

    This makes no sense whatsoever.

  6. 500 years? Sheesh.. Between changes in economy, technology, cultural attitude, hell… culture itself…
    Which funny-pills is the guy on to look that far back and pretend it’s normal to do so?

    Or did his hamthumbedness forgot to proofread his own brainfarts again and should it be 50?

  7. That assertion is bollocks. From memory private mortgage rates in Elizabethan times (Liz one that is) were about 5%. Private mortgage rates now are still about 5% (from memory – standard variable) and were generally about 4% to 6%. OTOH On lending to the Sovereign, bankers required about 12% to 15% in Liz Ones time. Sir Thomas Gresham got that down to 12% for Liz One. But, in 1694 the Bank of England was handed a monopoly and its first loan was to the government for …..8%. Now the government borrows at what? 1%?

    So he’s right in one sense. That is it is the Damn’ government that has enjoyed ever decreasing interest costs as well as working on ways not to pay back the principal (hint – inflation).

  8. Good point on the culture aspect, Grikath.
    1521 would still be in the times when usury was a venal sin in England. The Westminster Confession of Faith, after the Reformation & late as 1646, had it so. Since that was drawn up on the authority of Parliament, it’s not obvious there were interest rates as such 500 years ago to discuss.

  9. Illegal interest rates are still interest rates. I suspect that banning things works best when the thing being banned has already largely finished its existence e.g. the abolition of serfdom in early modern England. Nobody much had met an English serf for a century at least. I assume a few must have survived to justify a tidying-up abolition.

  10. Bloke in North Dorset

    “And given that the 500 year history of interest rates has been downward the current near zero is inevitable and sustainable”

    Past performance is no guarantee….

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