Monday, November 19, 2012

Eyeballing-in some trend lines

I am pretty sure now that the graph in my 4 AM post is by Alexander Gloy of Lighthouse and SilverIsTheNew, and that the host for guest-posting was Zero Hedge.

I am particularly interested in the dotted black line on the graph, the "marginal utility of debt" line. Here is the same graph again, with some blue trend-lines eyeballed in, quick and dirty:

There is an uptrend in my trend line from the mid-1980s to the early 1990s, which corresponds perfectly with the downtrend in the red line.

What policy needs to do is more of the thing that makes the blue line go up and the red line go down.

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