Comments on: Zen and the hell of low returns http://blogs.reuters.com/james-saft/2013/11/13/zen-and-the-hell-of-low-returns/ Tue, 24 Mar 2015 16:54:45 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Missinginaction http://blogs.reuters.com/james-saft/2013/11/13/zen-and-the-hell-of-low-returns/comment-page-1/#comment-2262 Sat, 16 Nov 2013 03:36:39 +0000 http://blogs.reuters.com/james-saft/?p=40738#comment-2262 Opps, I misspelled Hayek. That’s disrespectful.

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By: Missinginaction http://blogs.reuters.com/james-saft/2013/11/13/zen-and-the-hell-of-low-returns/comment-page-1/#comment-2261 Fri, 15 Nov 2013 16:09:31 +0000 http://blogs.reuters.com/james-saft/?p=40738#comment-2261 As time goes on, I wonder if the current growth model taught to me as I earned my degree in economics is valid at all. Think about it. Physicists change their models of how the universe works when they discover that an old model no longer fits new data or information. The same goes for doctors. That food pyramid….gospel a few decades ago, today proven false. So far anyway. Tomorrow new discoveries may require more adjustments to theories in many branches of science.

Not so much in economics. As a species we seem wed to the ideas of Mr. Keynes and Mr. Hayack. I wonder where we would be today if scientists and engineers insisted on sticking with the laws of Sir Issac Newton. Sure Newton was a genius in his day and provided a foundation on which later scientists built, but key aspects of newtons famous laws of motion while correct in everyday circumstances have been shown to be incorrect or inexact in extreme situations such as at the microscopic level or near the speed of light. Newton simply didn’t have the information that we have today.

The world has changed dramatically in the past 100 years. Here we are though, promoting the same old processes. Fractional reserve banking is religion to many economists and most in power today. As I study the past 30 years it seems more and more obvious that economic theories based on infinite growth are as incorrect (or inexact) as some of Newtons ideas.

We need some new thinking. New theories based not on growth but on sustainability.

As far as your column is concerned, James I’ve made the decision a couple of years ago not to engage in investing at all anymore. No stocks, no bonds.

My returns are low. I still have plenty of assets though and have adjusted my spending down accordingly. Everyone seems to think that these adjustments are “bad”. It’s a funny thing though, I sleep better and enjoy life more……with less.

Perhaps the stock market here in America really is the “only game in town”. Even if it’s true, I don’t have to play.

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