Thursday, January 13, 2022

The Rationality Index and Inflation - Part 1

 The old 'boom bust' cycle has been broken.  That's why I'm inventing my new Rationality Index or RI.  Then, when I get lazy, -- ri.  

The ri tracks when the people of the world are connected to the universe, through physics mechanisms, of either the Newtonian sort, or Economics.  These are forces that cannot be ignored, or they can be ignored, but not forever.

The old business cycle happened without any Central Banks.  You'd have the Roaring Twenties, and then, boom, the Thirties.  Now, we can't have that.  The last 'old cycle' was the Sixties, followed by the Seventies.  The ri started to play here, and was low during the hippy era.  The big Vietnam war was a result of the Cold War, and the 'Camelot' concept that the west could do anything.

This could only be cured by the hangover of the 70's.  No central bank involvement, and everything went to 'Stagflation'.  High inflation and no economy.  Eventually, central banks got the idea that they could hammer inflation with high interest rates, and we got the 20% mortgage.

This was not what got us out of the 70's funk.  It was that the ri started to zoom up, as all the hippies died of overdoses.  

-whoops, have to go to Costco, to be continued

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