The folks at CERN (super collider in Switzerland/Italy) are scratching their heads this weekend. They observed something happening that simply can’t be true. The scientists have measured neutrinos moving at a speed greater than the speed of light.
The possible discovery of subatomic particles moving faster than the speed of light has researchers worried about one of the fundamental tenets of modern physics.
"To our great surprise we found an anomaly," said the experiment’s spokesman, Antonio Ereditato of Bern University.
The average person, said De Rujula, "could, in principle, travel to the past and kill their mother before they were born."
We shall see over the next few months whether the “anomaly” observed this week will be proven true. If it is proven, some basic building blocks of physics (E=MC^2) will come into question.
Some other "Givens" that the modern economy/civilization rests on were also brought into question in the past week. Here’s my list of those potential lies.
Keynesian Economics always works.
Lower interest rates are good for the economy.
Deficit spending as a counter cyclical measure always brings the desired results.
Low interest rates are good for the stock market.
Gold is a safe haven.
The Swiss Franc (and HK$) is a safe haven.
Dividend stocks are a safe haven
The Fed is an independent entity. Their decisions are free of political considerations.
Countries don’t go bankrupt. They just restructure their debts.
The US government can invest in new technology without risk.
HFT is a good thing as it increases liquidity during troubled market conditions.
Advanced economies can function perfectly fine with debt levels above 100% of GDP.
The US is pretty close to turning the corner and returning to sustainable economic growth.
Extended unemployment benefits are good for the economy.
The big global banks are all “Money good”.
There are no negative consequences resulting from artificially low interest rates.
The “Buy and Hold” is a good investment strategy.
The vast majority of pension funds are sound. They can easily earn the 8% compounded annual returns that are necessary to assure they can meet their obligations.
Republicans and Democrats have learned an important lesson with the S&P downgrade. Their ideological differences will be put to the side for the good of the country.
Increasing taxes is a viable solution to our problems.
It’s perfectly reasonable to push much-needed belt tightening off into the distant future. The “Markets” will accept the, “spend today but not tomorrow” policies and actually believe it.
The US Treasury Secretary has significant influence in shaping economic policy in Europe.
Market volatility is good for investors as it increases their opportunity to buy cheap assets.
ZIRP is proving to be a valuable policy tool in offsetting the economic slowdown.
Ben Bernanke actually can “Talk up” the market.
The problems facing the USA are short-term in nature. There are no structural economic impediments that need to be addressed.
Monetary and fiscal policies always work. The only possibility is that too little monetary and fiscal “Gas” is prescribed.
There are a number of truly viable presidential candidates within the Republican party.
Angela Merkel and Nicolas Sarkozy actually do understand what is going on in the financial sector of the EU. Their reluctance to act decisively is prudent policy.
The BRIC’s (especially China) will be immune from a decline in western economies. China has successfully converted its economy such that it is self-sustainable based exclusively on domestic demand.
The times have never been brighter for the possibility of lasting peace in the Middle East.
The Fed has many powerful and effective “Tools” available to achieve their desired objectives.
Investing in ten-year treasury bonds is a good investment choice. The current yield of 1.8% is more than sufficient to offset the inflationary erosion of the principal invested.
The Fed is not working lock step with the administration on economic issues. The Fed is staunchly independent. Any claims to the contrary by Republicans are just hogwash.
The possibility of new high tech failures is remote. It’s perfectly appropriate to fund star-ups with debt. Equity money is not required as bankruptcy is not a consideration.
Cocktail party stocks like Netflicks and Molycorp should always be bought on the dips.
The S&P will earn over $100/share in 2012. Stock multiples always have to move higher.
There are no, repeat, no liquidity concerns at any of the large EU banks. That’s just a fact, the heads of these banks have repeated said so.
Bernanke is omnipotent. He has the means and the will to achieve lasting economic prosperity both in the USA and the world.
There is a zero chance that the Fed’s actions this week could lead to any systemic risks. Inflation is under control today and will be for at least the next five years.
It is wise policy for the Fed to facilitate the debt issuance of the USA. More cheap debt is the solution, not the problem.