Um. I can’t emphasize this enough.

1) *While Prices drive to Equilibrium, Markets drive to Disequilibrium*.

2) Loose credit (monetary expansion) increases disequilibrium necessary for causing corrections (discovering limits).

3) The debate between conservatives and progressives is whether the cumulation of short term gains exceeds the costs of the correction. In my opinion, this is rather obviously ‘no’, but that is because the economics profession does not measure changes in ALL capital and instead cherry picks measures of capital.

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