Welcome to Robert’s FYI blog21st November 2012
Thank-you for your interest in the FYI website and for finding this opening blog.
Writing things down helps to achieve a balanced perspective, and in particular helps me to vent my frustrations with the current woeful lack of real economic thought.
No trend lasts forever, and despite howls to the contrary many people did see the 2008 downturn coming; it was the establishment of politicians, bureaucrats and central bankers who believed their own fluff and nonsense, and the coterie of economists, crony capitalists, media and various hangers-on who either in self-interest or ignorance failed to raise the warning flag.
In 2007 Chuck Prince, then Chairman and CEO of Citigroup famously said “As long as the music is playing, you’ve got to get up and dance. We’re still dancing.” That quote came back to haunt him, but correctly referred to excesses in leveraged lending, and it is certainly true that no-one can predict the timing of peak financial imbalances; trends can perpetuate for longer than anyone betting against them can remain solvent, so often we need to understand and live with the trends.
But now, as everyone unproductively seeks to blame others, few raise their hand to point out that we have lived through consecutive decades where the basic principles of sound money have been cast aside in the rush for votes, to the detriment of the majority of businesses and their workforces.
As many applaud Keynes as a saviour with all the right answers (and he must be turning in his grave at the travesties done in his name) there are many common sense economists who have told it as it really is, who receive (in life or death) very little exposure, yet need to be listened to if we are to avoid ignoring the lessons of history and provide a sound economic base for ourselves, our children and grandchildren.
So do come back, as I intend to publish a regular blog with entertaining yet timely economic commentary, sometimes focusing on current events, or my take on popular economic delusions, occasional book reviews and real economic theory expounded by many of the great but out-of-fashion economic philosophers.
If that sounds a bit big picture for you, on this website we also have “business articles” that you can access on the home page or at resources/business articles, all designed to be of real practical benefit to your business thinking.
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