Comments on: Forecasts of growth https://www.golemxiv.co.uk/2010/03/forecasts-of-growth/ Author of THE DEBT GENERATION Thu, 06 May 2021 15:38:53 +0000 hourly 1 https://wordpress.org/?v=6.5.2 By: Herault https://www.golemxiv.co.uk/2010/03/forecasts-of-growth/#comment-110 Thu, 25 Mar 2010 13:08:06 +0000 http://www.golemxiv.co.uk/2010/03/forecasts-of-growth/#comment-110 Good article as usual, Golem. "Forecasts are a way of telling lies" should be printed at the top of every newspaper's financial pages.

I haven't read a lot on economics but I remember reading that economic theory works on the assumption that the economy is composed of an infinite number (!) of small businesses. In no economy is this true: there are always a number of giants who dominate any economic sector. The nearest approximation to pure theory comes in agriculture, where lots of small farmers do compete. Ironically this sector is one which requires State intervention since external factors such as the weather can affect it more than any other economic activity.

One thing I'd like more detail on: your remark that " Those who bought yesterday's Two Year's got stuffed today". What exactly happened?

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