'..the ballooning of outstanding public debt..' - Jean-Claude Trichet

Posted by ProjectC 
“…Given the magnitude of annual budget deficits and the ballooning of outstanding public debt, the standard linear economic models used to project the impact of fiscal restraint or fiscal stimuli may no longer be reliable. In extraordinary times, the economy may be close to non-linear phenomena such as a rapid deterioration of confidence among broad constituencies of households, enterprises, savers and investors.”

- Jean-Claude Trichet (European Bank President) , Financial Times, July 23, 2010

'Hayek was very critical of attempts to describe the economy by econometric methods and held that economists attempting to mathematically model the economy pretended to know things that are inherently unknowable.

Mises notes in Human Action that the equation of exchange leads to the false conclusion that money is neutral. It indicates that the 'general level of prices' rises or falls commensurately with an increase or decrease of the money supply, but that overlooks that changes in the money supply don't influence all prices at the same time or to the same degree.'

- Acting Man, More On Money and the Fed’s Predicament, April 18th, 2011

'It is an old hobbyhorse of economically ignorant politicians: when you don't like where certain prices are going, simply blame speculators.'

- Acting Man, The Heavy Hand of The State, April 20th, 2011