Debt Rattle Apr 29 2014: Economists Are Stupid, Useless And Dangerous
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Andreas Feininger Production of B-17 Flying Fortress bomber, Seattle March 1936 Economists are stupid because they have studied economics. Which doesn
[See the full post at: Debt Rattle Apr 29 2014: Economists Are Stupid, Useless And Dangerous]“If there occurs an absence of growth in an economic system, it must be, by default, because the wrong policies have been applied. Economists will then prescribe the right policies”
Policies, eh? Maybe economies shouldn’t be so Policed? In a pure sense, they really don’t do so well in captivity. An economy that operates on a basis of freedom of association is free to fluctuate and adjust. Growth isn’t necessarily required. When irrational exuberance runs it’s course, such an economy is free to enter a period of deflation and healthy retrenchment.
Sure, some discomfort would be experienced, but such discomfort would be remembered and avoided in future. (Moral Hazard?)
Ah, but how could benevolent government stand by and let that happen? Isn’t it it’s job to protect us all from anything bad happening, like reversion to natural law?
As long as government controls the currency, it will run (police?) the economy. In that light, where should the blame for failure be placed? After all, economists are simply attempting to direct government to their special interest causes, just as any special interest would. Why? Because central power is a mighty force. So mighty, that it eventually becomes it’s own special interest.
The only solution to these dilemmas is to whittle this power down to “economy” size and keep it there, discouraging future misuse by those who would abuse privilege. Then, put money back in honest form and into the hands of the people, who may then decide on it’s best and most efficient use, including what share they deem sufficient to entrust to government for it’s drastically reduced day to day operations.
Or? Continue to grant consent to our masters and accept the consequences. Like, look around at the mess central planners have made, then demand they “Do More.” .???
In short, proof might be found in the fact small local economies function better because there is no command and control center running them, so less incentive for seizure and manipulation by less than straight shootin’ wranglers.
The “assume you have a can opener” joke should be in there:
https://netec.mcc.ac.uk/JokEc.html (Jokes about economists)
https://en.wikipedia.org/wiki/Assume_a_can_opener
Why look in the other link?
“In 2010, the Gini coefficient for family income in China was about 0.55 compared with 0.45 in the U.S. In 1980, the gauge in China was 0.30. A coefficient of 0.5 or higher indicates a severe gap between rich and poor, according to the report, which also said the Chinese government stopped releasing the data in 2000 when the gauge reached 0.41.”
Does that sound familiar, or what? Kinda like measuring ocean water for radioactivity after Fukushima; it’s just suddenly stopped off the west coast of North America. Same with so many other statistics.
When they don’t like the data, they just stop producing it, or manipulate it, wash it, spin it, and then hang it out on the line all fresh-like.
“Iron ore is among the commodities used in the so-called financing deals in the country, in which they are used as collateral for traders or companies to get funding for other businesses.”
Same thing with copper. What other commodities are they using? Gold?
“Just as with copper, traders use gold to short dollars, buy Chinese yuan, and make a gain on the interest rate differential. While the extent of the speculation is well-known regarding copper, gold’s role has been underestimated so far.
So far, China’s import of 1400 tons of physical gold from Hong Kong since 2011 (worth roughly $70 billion) has been attributed to demand from savers for investment or jewelry. The central bank was also rumored to have built up gold reserves in order to diversify its holdings of U.S. Treasury bonds.
In fact, it appears that the importing (and re-exporting) of all this gold had a much simpler motive. Profit.
Because of capital controls—you cannot buy yuan on the open market—traders devised an elaborate scheme involving Chinese and foreign banks to funnel dollars into the Chinese credit system. They would earn a much higher interest rate in China and also profit from the appreciation of the Chinese yuan.
Copper was used extensively because of its availability, but gold was popular because you can move larger notional sums and use up less space during shipping and storing.”
“The real question is why over the past thirty+ years, did the Fed have to constantly lower interest rates to ever-lower levels with each successive recession?”
The following link is to a blog post which has a chart on it which tracks (the United States) effective federal funds rate versus its total credit market debt to real gdp ratio over the last 40 years.
Please be advised the blog post contains some foul language.
[url]https://ponziworld.blogspot.ca/2014/04/globalization-game-over-man.html[/url]
“The real question is why over the past thirty+ years, did the Fed have to constantly lower interest rates to ever-lower levels with each successive recession?”
The following link is to a blog post which has a chart on it which tracks (the United States) effective federal funds rate versus its total credit market debt to real gdp ratio over the last 40 years.
Please be advised the blog post contains some foul language.
https://ponziworld.blogspot.ca/2014/04/globalization-game-over-man.html
Since this is the Age Of Economics economists must be our priests. One follows the other. If and when this age ends so will economists, as priests. One can imagine in centuries to come students pouring over their words and judging them as strange incantations to a forgotten god.
rapier – I agree. We just follow these economic or religious priests off a cliff. How do they ever get so much power? I was reading about women in the Philippines, six or seven kids, desperately wanting to buy birth control, yet the priests won’t allow it. WTF? The whole family is suffering, hungry, living in a one-room shack, and yet some representative of God says, “No, no, you can’t have that. I have spoken.” He needs to be told to jump off.
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