Marc Faber : GDP is not a very Relevant Figure Oh boy; Marc, this is exactly what we posted last week. We certainly appreciate your sub...
What's wrong with the GDP metric? Too much; as my FFI's comments point out. Would anyone measure and manage a business based purely on its statement of revenues, ignoring completely any view of its balance sheet? No, of course not!
So why then do we use a limited metric to measure and manage the affairs of a nation? And even much more importantly; the affairs of the planet? These delusions trace back to " The Wealth of Nations" and its implied assumption that infinite growth was the operative economic condition and goal. What Mr.Smith should have assumed quite rightly, that finite conditions and goals prevail as the hard reality constraints of any nation or planet.
Perhaps then he would have written a different "story" and named his work " The Wealth of Planets". Oh, how different our world might be -
Dr Peter G Kinesa
December 13, 2012
"Fairy tales can come true... if you are young at heart..."