The Destruction Of The Death Stars: A Galactic Economic Catastrophe

Where were you on this one, Janet Yellen?
Author:
Updated:
Original:

Stop cheering, for goodness' sake.

It may be a boon for the Hollywood economy, but the story behind “Star Wars: The Force Awakens” is a galactic economic collapse of unimaginable proportions. So opines Washington University economy Zachary Feinstein, who reckons that the greatest of all depressions, stemming from the destruction of hundreds of quintillions of dollars worth of Death Stars and the subsequent default on that debt by the defeated Empire, is the only way the victorious Rebel Alliance could find itself in such dire straits once again. To say the least, it’s all a good deal more high-minded than the discussion of the politics of independent contracting in Clerks, and, according to its author, good economic analysis as well.

Emperor Palpatine misjudged one point in his strategy of mutually assured destruction: the Rebel Alliance, while trusting in the power of the Force, never placed importance on long-term planning….

In this case study we found that the Rebel Alliance would need to prepare a bailout of at least 15%, and likely at least 20%, of GGP in order to mitigate the systemic risks and the sudden and catastrophic economic collapse. Without such funds at the ready, it likely the Galactic economy would enter an economic depression of astronomical proportions.

It’s a Trap: Emperor Palpatine’s Poison Pill
In New ‘Star Wars,’ Empire Strikes Back Because the Rebels Stink at Finance [WSJ MoneyBeat blog]

Related

(Cleveland Fed)

Potentially Imminent Economic Catastrophe No Reason To Rush Leisurely Fed Vice Chair Nomination

Loretta Mester will be the latest to spend months/years waiting for a call that might never come.

Courtesy Federal Reserve.

Joe Biden Getting The Band Back Together

Janet Yellen gets her reward for putting up with Donald Trump for a year.