Checkswrecks said:
Some context to Grahams' thought about the cost to "blow things up" is to look at the per capita debt since 2001. Debt was coming down nicely till that. And what were WE (not just one president) thinking in 1980? That's when the cat got let out of the bag, because there was no statutory end to the borrowing, which is in effect what Houndman and most people, me included, think we need.
Pffft! Government debt is nothing. The real drunken sailors are wall street and the drunken lending spree they love to allow everyone access to.
Many economies around the world have been pump priming their economies by "speculative lending" which is all well and good until the amount owed starts dragging on the economy. On the flip side some countries notably China, Japan and I think Germany have NET surpluses and money to lend (or buy and stockpile resources)
So this is why I like the NASA, NREL, DARPA thing. They often do good basic research which MAY then be used to advance industry (robotics, energy efficiency, Internet).
Now, if that private debt was sunk into efficiency improvements (rail, shipping, energy production, manufacturing etc) it would have had a way better outcome than blowing speculative bubbles in stocks, housing and "Shorting Greece".
I might sound old fashion, but I think the Government and Wall Street would have been better off investing in those things than blowing bubbles and blowing shit up.
Trouble with that is that at some point someone has to say, This is shit we need to make some hard decisions, which usually means that they get kicked out at the next election because people who don't pay attention think that it has nothing to do with then and it all the Governments fault. The last thing people want to do it seems is accept that they may need to work a bit harder at getting smarter when someone is promising them a quick fix after they get in.
In Australia people are paying about double for a house and land than they should. (Speculation). No one even seems to get the fact that the same house they are paying double for does nothing to help the economy, unless you borrow against that increased value. Eventually people are maxed out on debt, Then they have a lot less money to spend on other things and the people that buy have bugger all to spend. The banks love it, the economy is being sucked dry by debt repayments and importing oil (we peaked 12 years ago and that bill is getting bigger). Right now we are selling a lot of finite resources to other countries so we cope. Our manufacturing industry is going down (sound familiar?) but we make good shovels and ports. This has been bought about by Government policy and the belief that you can make money by borrowing more on speculation. Anyone who said otherwise over the years was ignored or voted out.
We have become fat and lazy, just like all middle aged economies. Nice while it lasts, but eventually a triple bypass comes a knocking...