March 4, 2011

Growth is not just growth – with or without inflation – it seems to be a fight for or against more inflation

It’s incredible what you have to read concerning the economic growth in i.e. Germany. The growth including inflation referred to in the papers. The last mentioned was about 2% a years in Germany January 2011, and it has to be subtracted from the nominal growth rate. It’s almost ridiculous, especially when we read that ECB intend to raise the interest rate next month to prevent much more inflation, and EU recently began constructing a new common price-index for the member countries. The most funny is the comparison of what EU informs about the inflation-cleansed growth, and what http://www.indexmundi.com writes about precisely the same thing. There is certainly no match.

Germany real growth :

Germany - GDP - real growth rate (%)

I do read 1% in 2009.

Eurostat on: http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&tableSelection=1&labeling=labels&footnotes=yes&language=en&pcode=tsieb020&plugin=0
Real GDP growth rate – [tsieb020]. Growth rate of GDP volume – percentage change on previous year. Gross domestic product (GDP) is a measure of the economic activity, defined as the value… more

I read -4.7%, but perhaps when compare with indexmundi one of them seems to have excluded or included former East-Germany and the other have not.

Let’s take Denmark. Eurostat says real growth -5.2% in 2009. Indexmundi says real growth -1.2% in Denmark in 2009. We have also seen that the result might be pretty different when you just look at one country and its statistics, for example Denmark with a consumer-price-index and a price-index of producergoods.

We are just expected to go on while the fight continues between those who intend to make more inflation and those who intend to reduce or prevent inflation. The depth of the fall certainly depends of the winners. Real growth is unattainable without urgent big structural changes. John Maynard Keynes used an expression close to a tautology: “We are all dead in the long run”. That does not need a mathematical interpretation with a model world without real human beings and money. This world-economy we live in with money shall be destroyed once in a lifetime, because there certainly are human beings in it and money to destroy.

A new monetary system after the debt has been settled

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