Believing in the Impossible;

 

----- Original Message -----

From: Len Cranford

To: Richard Finley ; 

Sent: Wednesday, June 24, 2015 5:50 AM

Subject: Believing in the Impossible;

 

[You got $60,000. in your pocket to pay YOUR share? Commie Obama saddled you with another $8 Trillions$]

 

http://www.google.com/url?sa=i&source=imgres&cd=&cad=rja&uact=8&ved=0CAQQjxwwAA&url=https%3A%2F%2Fdrhurd.com%2F52491%2F&ei=66WKVeGAIpeSoQThsp-QAg&psig=AFQjCNFqol5JRE_hEwEEa6N94bODfHmYRw&ust=1435236203680731

 

 

We're Stupid: Believing In The Impossible   http://market-ticker.org/akcs-www?post=230266

 

There is no means by which you can run an indefinite deficit.  It cannot be done, as that is an exponential series.  All exponential series that have a growth rate greater than 1.0 (that is, anypositive growth rate), over sufficient time, end in disaster.

Always.

Every time.

You need to prove this to yourself.  Use Excel, Google's free "on the net" spreadsheet, whatever.  It takes a literal 2 minutes to construct a spreadsheet such as this:

A1 (first cell) = 1.0

A2 (second cell) = $A1 * 1.03  (3% growth)

Then copy A2 and paste it down the line for a few hundred cells.

Now graph that.

If you want to make it easy to change, make A2 = $A1 * $B$1, which will make the multiplier a fixed reference.  Extend that, then plug in your desired value into B1.

Notice that for any value in B1 over 1.0, no matter how small, the graph eventually does the same thing -- it runs away from you in an uncontrolled upward explosion.

If you can't be bothered to do this on your own then try the link right here: Spreadsheet Link

This is the reality of deficit spending, it is the reality of claimed "infinite" GDP growth, it is the reality of inflation that is allowed to occur at any positive rate, it is the reality of health care expense expansion, home price expansion, stock price expansion and so on.

It never ends any other way because it mathematically can't end any other way.  Before it ends this way each and every time someone figures it out and the market collapses.  This is the definition of a bubble and it is why they always pop.

Cut the crap folks.  Greece is not fixed, the EU is not fixed, the US is right behind them and you're welcome to cheer all you want but I, for one, am tired of listening to the excuses while I watch everyone around get me screwed blind by the medical industry, politicians and so-called "commentators" exploiting this very same line of crap as they shovel you into the hole.