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The Astounding Failure of the US Education System, Part 2

smartknowledgeu's picture




 

After observing the considerable amount of interest over my
most recent article, The Astounding Failure of the US Educational System, I have decided
to extend that article into a 3-part series. Here’s Part 2.

 

Normally I don’t read all the comments on the articles I
post due to time constraints. I usually skim them from time to time but I normally don’t have the time to
read all the comments that people post on every video I upload and every article I
post. I just skim comments to see if people disagree or agree with what I’m
saying and also to gain more insight from people more knowledgeable than myself
about certain topics about which I have written. In fact, having people call me
an idiot, misinformed, and bitter is validating. Why? If my articles don’t provoke
at least a handful of haters then that means I’ve probably stopped telling the
truth and my views have gone mainstream. So I truly don’t mind the hateful
comments that call me a moron, embarrassing, and misinformed, because these
types of comments inform me that I am accomplishing what I have set out to do
in trying to open up people’s minds to an alternate viewpoint. Furthermore, I’m
used to the hate by now.

 

Ever since I started my investment blog, The Underground
Investor
, in 2006, I’ve been receiving negative and occasionally sometimes even
hateful comments. Back then, people called me crazy for repeatedly and
passionately advocating the virtues of gold. In fact, quite strangely, I’ve
been called by those that vehemently disagree with me, both a left-wing liberal
and a far-right neocon nut; a left-wing liberal for discussing gold and
silver-price suppression schemes years ago and for drawing attention to the
plight of the starving, and a far-right neocon for labeling President Obama as
a banker puppet the minute he selected his Wall Street cabinet. The funny thing
is that I consider myself neither left or right-wing but an independent that
always takes the side of truth and justice.

 

There’s nothing ever wrong with others vehemently
disagreeing with me. I’ve been wrong in the past, and I’ll be wrong again in
the future. I only wish that those that express their opposition in the form of
name-calling would make more of an effort to provide constructive criticism
that actually contributes to the discourse rather than just accusing me of
being angry, foolish, or short-sighted. I don’t know why some believe that
happiness and truth have to reside at opposite ends of the spectrum. It seems,
these days, that if you tell the truth, people assume you must be some
disenchanted, bitter, furious, A Time to Kill - Samuel L. Jackson-type of
character that screams “Yeah, they deserve to die and I hope they burn in
hell
!”  I guess this type of
stereotyping makes it easier to dismiss the truth. 

 

The late Tupac Shakur once said that when the public started
criticizing him very harshly for the stories he told through his lyrics, he
became self-conscious and considered self-censoring himself, thinking as he
wrote his lyrics, “I can’t write that. That’s too harsh” or that he would start deleting lyrics, afraid that they might offend someone. However, he quickly killed the notion of self-censoring his lyrics. Why? He said when he did so, he would suffer from
writer’s block and that the sincerity and honesty of his song-writing
disappeared. Thus, he concluded, for better or for worse, that he would no
longer worry about how people would react to his lyrics but that he would just
right whatever flowed from his heart. I tend to think that I blog in the same
manner. At times, I make comments that some people will criticize for being too
blunt and too harsh, but I never write with the intent of being offensive to
anyone. As they say, the truth ain’t always pretty.

 

In any event, I want to acknowledge my supporters as well
and those that provide thoughtful commentary. In fact, I want to address a
commenter on my previous article that stated that parents must take
responsibility for the education of their children and that education begins at
home. I 100% agree with this statement. However, I believe that in today’s
modern society, this responsibility has become increasingly difficult to take
on for parents as opposed to within the societal structure that existed 40 to
50 years ago. If any of you have read any of the books about the history of US
education not only by John Taylor Gatto but also by Howard Zinn, Joel Spring et
al, you will discover that there was a concerted effort by the men that funded
the US educational system to end the era of the housewife that stayed at home
and cared for the children while the husband was at work. How did they achieve
this? By debasing and severely devaluing money so that a one-income family
would no longer be adequate and by ensuring that both parents would have to enter
the workforce, thus drastically decreasing the time parents had to spend with
their children. Thus, the goal of the men that funded the educational system was
to deploy more influence over children’s thought processes than even their own
parents by engaging children in the educational system more hours a day than
they would be engaged collectively by both of their parents.

 

As I usually write the articles I post when I have spare
moments in the wee hours of the morning, I often have one of my administrators
skim comments of my articles within the first 24-hours after posting just to
ensure I didn’t make any egregious factual errors in my frequent haste to write
new articles. Regarding the article that comprised the first part of this three
part series, The Astounding Failure of the US Educational System, my admin was
genuinely upset about some of the negative comments posted in the article (God
bless her heart).  She came to me
and said, “I can’t believe some of the negative comments on that article. That
was probably the least self-serving article you have ever written. You should
just stop writing these articles if people are going to attack you for writing
them.”

 

Upon hearing how upset my admin was, I told her to hold on
and to allow me a couple of days to read through all the comments. When I
finished reading all the comments, I went back to my admin and told her, “I
read all the comments. There were 280 comments at the time I read them, and
maybe only a dozen that were really negative. Look, if one young adult
understands what I write and saves himself or herself a life of debt, then that
article is worth 3,000 negative comments. And people can say whatever they want
to say. It’s a free world and I don’t have a problem with that. Furthermore,
” I
told her, “I know that my blogs have achieved what I want them to achieve.
There’s a young kid in Seoul that has written me many times that I think is
brilliant because he already understands how the matrix works.  He’s told me that because of my
articles, he’s postponing the traditional educational route and going to strike
up an attempt at becoming an entrepreneur first. I know he’s going to be
successful because he’s passionate and he’s very intelligent in the unconventional,
non-academic sense.”

 

“Okay, then,” she replied. “But you need to really write an
article that lets people know how accurate your predictions have been. If
people knew how accurate your predictions have been for five years running and
that it has nothing to do with your academic career, then maybe they’ll
understand your rejection of traditional business academia to a much greater
degree. Maybe then, they would get it.”

 

So without further ado, I’m ironically going to follow up
what my admin considered “the least self-serving” article I’ve ever written
with what I believe will be the most self-serving article I’ve ever written. Even so, my embarrassingly shameless self-promotion in this article still has a very important point, and that is to illustrate that higher education is not the Holy Grail to knowledge, intelligence, and entrepreneurial success. On
April 23, 2008, when I was not yet writing for Zero Hedge, I wrote an article
on my blog titled “Will US Markets Crash Now or Later?” that was printed on
Seeking Alpha (see the link). If you visit the link and read the comments, many
commenters called me naïve and foolish for writing such an article, even
though, 18 business days after I wrote this article, the US S&P 500 started
a massive 54% decline from the 1440 level to the 666 level that any normal
person would define as a crash.  So
why did people automatically discredit me and believe the “authorities” that
preached the economy was fine and that US markets had begun a new bull market
in earnest?

 

Before I answer that question, let’s consider a very small
sampling from a much wider list of predictions that I have provided (1) on my
blog; or (2) to my clients over the past five years that have come true.  The below are exact quotes that have only been extracted and condensed from much more comprehensive
bulletins sent to my clients.

 

My Past Predictions

 

June 2006: “The dollar has to weaken not a little, but
considerably, for the massive U.S. trade deficit to close considerably. And a
stronger U.S. dollar of course makes this less likely to happen (a stronger
dollar means that U.S. goods become more expensive for foreign countries, so
U.S. exports would be likely to decline). However, because American individuals
are burdened with debt as well, Bernanke’s hands are tied as to the number of
times he can continue to raise interest rates without causing an economic
recession.  In the early 2000’s
many American’s overextended their credit, taking advantage of historically low
interest rates to buy huge houses with low mortgage payments that were really
over their budget.”

Outcome: The sub-prime mortgage fiasco and currency fiasco
that we warned about became a reality. Within just one year, the U.S. dollar
lost 15% against the NZ dollar, 5% against the Sing, and 16% against the Thai
baht not to mention huge losses against major currencies like the Euro and
Pound Sterling.

 

August 16, 2006: “Over seven and a half years, if your
portfolio has tracked the S&P 500’s index as some 97% of U.S. professional
money managers aim to do, you have about the same amount of money you had seven
and a half years ago – only with the rapid devaluation of the dollar, your same
amount of dollars buys much less today, so in all actuality, tracking the index
has lost you money. That’s a whole lot of waiting for a whole lot of nothing.
And that’s the good news. The bad news is, as of 2006, the U.S. stock market’s
performance will likely become even worse for the rest of this decade.”

Outcome: When I made this prediction, every single one of my
former colleagues in the investment industry with whom I discussed this
prediction laughed (and some quite literally, laughed out loud) at this
prediction. In fact I remember one investment industry professional stating
that the probability of the S&P 500 closing lower than its August 16th,
2006 level at the end of the decade was ZERO, even if one took the effects of
inflation into account. Today, at the near end of this decade, four years after
my prediction, the nominal S&P 500 level stands at 1,183.08, down from its nominal
level of 1,295.43 on August 16, 2006. Factor in real inflation rates of 10% to
13% between 2006 and 2008 and more recent inflation rates of 8% to 9% (as
calculated by shadowstats.com) and the REAL losses in the S&P 500in the
past four years become quite substantial.

 

September 6, 2007: “Increased volatility in stock markets
will occur as $370 billion in sub prime mortgages re-set to higher rates,
starting with $50 billion in September and $30 billion every month thereafter
for the next 18 months to 2 years. Triple-digit losses in the Dow during single
day trading sessions will become commonplace…2007, and possibly into very early
2008, will present the last opportunity to buy gold at less than $700 an ounce,
but not without some volatility in between….We will see a strong rebound in the
U.S. markets after a deepening and scary correction. The rebound will be
manufactured again by the U.S. Treasury with the help of the U.S. Federal
Reserve.”

Outcome: Although it’s hard to think back this far, on
September 6, 2007, gold was trading at $685 an ounce. I presented the above
opinions at the Pan Pacific Hotel in Asia at an investment forum, after which
several investment professionals approached me and told me they believed that
gold was too expensive and that they would wait until gold dropped below $600
an ounce again before they would consider buying. These professionals may still
be waiting to buy. Gold rose from the $680 level in September to over $1,000 a
troy ounce by March of 2008. The London PM fix never closed below $700 an ounce
since then, even when the Fed Reserve engineered its now infamous attack
against gold prices in October of 2008. Triple-digit losses in the DJIA
happened almost daily or several times a week to open January of 2008 just as I
had predicted.

 

November 16, 2007: “With financial and housing stocks
slumping and big corrections in many major global stock markets, much of the
easy money shorting markets has already been made, though more will come in the
future. I think mutual fund companies are the next best bet for now. As the
crisis widens, I expect outflows from mutual funds to occur. There have been
some funds whose share price has defied current trends and those would be the
best bet, Janus Capital among them (JNS). Janus has a trailing 12-month P/E of
more than 40 versus the 29 of its peers. But there are others as well.”

Outcome: During the next four months, Janus Capital’s share
price plummeted more than 38%.

 

January 2008: “We can be assured that in 2008, that the
destruction of monetary value in both Europe and the United States will
occur...when smart investors finally realize that no fiat currency is safe, I
believe that investors (at least the savvy one) will begin to dump the Euro and
the Pound as well.”

Outcome: In August and October of 2008, both the Euro and
Pound plummeted in value, both losing about 25% in value in a very short time
period.

 

July 22, 2008: “The global financial crisis is not under control
and becoming better as [bankers and gov’t officials] continually publicly
state. My downside target for Fannie Mae right now would be $4 a share."

Outcome: Though U.S. Treasury Secretary Henry Paulson stated
that “[Fannie Mae’s] regulator has made clear that they are adequately
capitalized,”
Fannie Mae dropped from $19 a share at the time I made my
statement to near nothing (turned out my $4 a share prediction was too
optimistic!). On September 10, 2007, the US Gov’t nationalized Fannie Mae.

 

March 11, 2008: “If you are an “old-school” person that believes in the
sacredness of and credibility of banking institutions and view Money Market
Funds as “safe”, I urge you to re-assess that belief right now. Many Short-Term
MMFs invest heavily in Asset Backed Commercial Paper (ABCPs), many of which are
backed by these very shady Mortgage Backed Securities.  If the MBS’s go
belly up, so does the ABCP, and your MMF, which everyone believes can never
lose value, WILL lose value.”

Outcome:  It took
a little bit longer for this prediction to come to fruition, which of course,
opened the doors for people to state I was crazy once again. On September 16,
2008, one of the first and largest US money market funds put a seven-day freeze
on investor redemptions after the net asset value of its shares fell below $1.
Shortly thereafter, two more money market funds also announced their inability
to redeem the fund at a net asset value of $1.

 

March 6, 2009: I stated to my Platinum clientsnow is a good time
to add MORE to physical silver holdings. I further emphasized that this was a
long-term play and that while “it is always impossible to determine the
timeframe for exactly when these great leaps higher in price will occur, [this]
is always why I seek what I feel are low-risk, high-reward entry prices.”

Outcome: Since then, silver has risen 78% from $13.12 an
ounce to $23.31 an ounce.

 

May 31, 2009: I stated to my clients “It’s time to be very
cautious with your precious metal stocks”
. I explained the reasons why I
believed danger was imminent (reasons that have to do with gold price
suppression schemes) and why the time was ripe to apply tight trailing stop
losses on PM stocks.

Outcome: The AMEX gold bugs index (HUI) plummeted from
398.06 on the first day after I issued the bulletin to 318.27 in the next 15
trading days, a 20% rapid fall.

 

Now let’s look at some of the predictions of my more
"educated", more advanced-degree-having colleagues in the industry.

 

 

PhD Ben Bernanke and Paul Krugman’s Predictions

 

July 2005: 
Bernanke stated there was no housing bubble in the US: “We've got a
growing economy, jobs, incomes. We've got very low mortgage rates. We've got
demographics supporting housing growth.”

In an interview in which Bernanke was informed of a premise
that a housing bubble existed, Bernanke replied: “I guess I don't buy your
premise. It's a pretty unlikely possibility. We've never had a decline in house
prices on a nationwide basis.”

July 2007:  Bernanke stated “[Home] sales should ultimately be supported
by growth in income and employment, as well as by mortgage rates that, despite
the recent increase, remain fairly low relative to historical norms…The global
economy continues to be strong, supported by solid economic growth abroad. US
exports should expand further in coming quarters.”

Outcome: Just two quarters later after Bernanke’s first
declaration that the housing market would continue to grow, US Median Housing
prices (real prices) started a non-stop slide for the next 3 years, falling
more than 35%.

 

November 2006: Bernanke stated, “The motor vehicles sector may
already be showing signs of strengthening.”

Outcome: By September, 2008, Chrysler, GM and Ford asked for
$50 billion to pay for health care expenses and avoid bankruptcy and ensuing
layoffs. By December, President Bush had agreed to an emergency bailout of
$17.4 billion to be distributed by the next administration. Chrysler filed for
bankruptcy in May, 2009 and GM followed suite, one month later. (Source:
Reuters)

 

February 2007: Bernanke stated, “We expect moderate growth
going forward.”

Outcome: In 2007, the revised US GDP was 1.9%, the slowest
rate in 5 years. In 2008, the revised US GDP was 0.0%. The REAL GDP rates
(versus the officially reported gov’t numbers) were much less, but that’s a story
for a different day.

 

July 2008: Krugman stated that Fannie Mae (FNM) and Freddie
Mac (FRE) "didn't do any subprime lending, because they can't: the
definition of a subprime loan is precisely a loan that doesn't meet the
requirement, imposed by law, that Fannie and Freddie buy only mortgages issued
to borrowers who made substantial down payments and carefully documented their
income."

Reality: From1997-2007 FNM and FRE acquired a total of $2.2
trillion in subprime loans and private securities backed by subprime loans. FNM
and FRE’s failure to classify these loans as subprime is a matter of semantics.
FNM acquired loans that carried a FICO score of less than 660 (a regulatory
definition of subprime) though it failed to classify these loans as subprime.
(Source: Edward Pinto).

 

March 20, 2009: Krugman stated, “The Fed is, however,
creating a new liability: the monetary base it creates to buy these bonds. In
effect, it’s printing $1 trillion of money, and using those funds to buy bonds.
Is this inflationary? We hope so!...I’m not complaining; I think quantitative
easing (it’s really qualitative easing, but I give up on trying to fix the
terminology) is the right way to go.”

Reality: Desiring and "hoping" for significant inflation
amounts to the endorsement of theft. Doing so signals a desire to plunder the
wealth of every citizen, to cripple the elderly that rely on savings to live,
and to punish the welfare of younger generations that choose to save now.

 

Higher Education Often Encourages Arrogance, Not Intelligence

 

In regard to my above predictions, though I found little to
no use for any of the information I acquired from my MBA studies in making any
of the economic predictions I posted above, the act of writing my thesis for my
Master in Public Affairs was truly useful to these predictions. My topic for my
MPAff thesis was media and information filters and censorship. Learning how
information is censored as it passes through the various distribution channels
of the mass media provided the impetus for my research into the sources and
motives for all information that government agencies and bankers release in the
media about capital markets. Understanding this process has undoubtedly helped
me to understand how bankers move the prices of capital markets up and down.  However, I must emphasize that I gained
this understanding not inside the academic system, but on my own, outside of, and in spite of,
the academic system.
I threw out my Keynesian economics background and studied Austrian economics. I studied the money trails among Central Banks, governments and corporations to understand how price behavior really worked in capital markets and discounted the supply/demand dynamics I had been taught. I researched the origins behind all mountain of statistics that move capital markets and asked questions about the origins of these statistics and the motives of the men that created them. Had I not even completed a college degree, I have zero
doubt that I would still be able to make the same predictions I made above with
the same degree of accuracy. In fact, only when I shed my elitist feelings
about attending an Ivy League school and believing that nothing I learned at
this institution could possibly be false, and only when I literally de-programmed
my brain from the entire body of business academic knowledge I had accumulated
within institutional academia did I finally start making economic predictions
that consistently came true, year after year. 

 

So how can those with advanced PhDs from the most
prestigious universities in America be so wrong? I think the answer is fairly
simple. Because of the admiration society bestows upon those with advanced
degrees, those with advanced degrees often develop a level of inflexibility in
their thinking that I associate with arrogance. For example, I often got in
heated debates with prospects that were scientists years ago when I was still
working for Wall Street. Because scientists are so used to working with models
based upon statistics, many (not all, but many) of them insisted on studying
and understanding the meaning of every single portfolio statistic, including beta
coefficients, the r-squared statistics, and so on. When I used to tell these
prospects that obsessing over these statistics would not lead to any better
returns because the reality of markets is controlled by many factors
extraneous to these statistics, they still insisted on understanding every
little statistic. Thus, I countered with a different strategy.

 

I discovered that when I informed these scientists that these Wall Street
risk models were developed by PhDs in economics from Wharton, they ceased
harping about portfolio statistics and in a matter of seconds, amazingly acquired an immediate faith
in the validity of these asset allocation models. This is exactly the bunch of
rubbish and rigidity that I associate with higher learning at times. All I had
to do to convince prospects about the validity of a model they were unsure was
valid one minute ago was to tell them that a PhD from a prestigious university developed the model. This,
despite the fact that at no point and time did I ever encounter a single risk
asset allocation model developed by a Wharton or Harvard PhD that included gold
and/or silver. Not one single time for one single day for one single hour.  Because I left the world of Wall Street in 2005,
some will rationalize the decision of these PhDs to exclude gold and silver as
an asset class from even their lowest risk asset allocation models as acceptable
because of their belief that the global monetary crisis had not yet started.

 

This reason is pure
rubbish. By the end of 2005, gold was already five years into its
bull run, and silver, three years. Both PMs had already embarked on their bull
runs because of the cracks in the monetary system that had already begun to
show. As soon as I left the corporate investment firm and started my own firm,
from DAY ONE of our launch in 2006, we informed our clients that a monetary
crisis was under way and that one of the lowest-risk, highest-reward assets
they could purchase was gold. Of course I would never have realized this if I
continued believing the rubbish I had learned in my Economics 101 textbook that
inflation is caused by rising prices.

 

So are all PhDs, MDs, JDs, MBAs, etc. stupid and are all
teachers in the institutional academic system useless? Of course not. There are
brilliant MDs, PhDs, JDs, et al, as well as brilliant individual teachers. Still,
the expanded base of information of those in possession of advanced degree does
not make them automatically more intelligent than anyone else. Furthermore, the
system as a whole still produces, from advanced degree programs, many more
rigid thinkers than free thinkers, and many more horrible teachers than
wonderful teachers. Too many people still foolishly equate the attainment of
advanced degrees with intelligence. But perhaps this is an indictment of
exactly what is wrong with our educational system today – if we can’t even
agree on something as simple as the definition of intelligence, we’re destined
to never acquire any of it.

 

Stay tuned for the third and final article of this series on education,
Why Entrepreneurialism, Not Climbing the Corporate Ladder, Will Save the Global Economy. I'll be posting the final part of this series very soon.

 

 

About the Author: JS Kim is the Founder & Managing Director of SmartKnowledgeU, a fiercely independent investment research & consulting firm dedicated to helping Main Street thrive and succeed despite the fraud of Wall Street.

 

 

 

 

 

 

 

 

 

 

 

 

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Mon, 10/25/2010 - 16:24 | 676054 Diamond Jim
Diamond Jim's picture

With regards to the Woodstock generation sitting through various monetarist scenarios..I offer: (1) many have "dropped out" so to speak, (2) the power was already in the financial industry and could not be changed, (3) too many already making $$$ in the power game so why change what was working. It could be a combination of all three. History may not reflect well on the "Woodstock Generation". We may have changed the course of history, but we did not follow through. we gave the country presidents like Clinton, Bush and Obama...I am almost ashamed.

As you suggest, hopefully the youngins' will pull it out, I know I have spent many hours hammering away at my kids and their friends. I have tried to instill a sense of American pride and history, Austrian economics, self-esteem, teamwork (especially with ones spouse) and to see as much of this country as possible (I am a geologist).

Mon, 10/25/2010 - 17:01 | 676130 Sean7k
Sean7k's picture

And it sounds like you have done a wonderful job. All the best!

Mon, 10/25/2010 - 14:38 | 675749 Diamond Jim
Diamond Jim's picture

Sean7k...I have heard all about "social group networks" in school today. This is an outgrowth of the "Japanese model" from the 70s and 80s. My daughter constantly complains about these models....she finds more often than not that she ends up doing all the work while the others fiddle. She does not like this "socialistic" model as everyone in the group receives a good grade based on her disproportionate burden. This kind of "group think" can be good and bad...it can bring along the more challenged, but does not justly reward the those leaders or motivated individuals.

One of the great things about this country is that it is the individual that is allowed to fluorish, unlike many other countries where everyone follows and goes along for the ride. It is in our Constitution, culture etc., ....e pluribus unim and all that.....

Mon, 10/25/2010 - 14:59 | 675816 Sean7k
Sean7k's picture

You are probably confusing my reference with cooperative learning models that do exactly what your daughter complained about. However, get a group of motivated students or workers on a project is different. 

You can see this in AP classes, but more so when natural competition is tempered by the drive for a superior output. Teamwork via the Japanese model is not necessarily bad. With a US twist? 

We do not have a monopoly on invention. The individual is strengthen through cooperation, not diminished. As I remember it, we have quite a few failures running around in our generation as well, including our collective inability to anticipate the destructive transfer of wealth to bankers and the financial sector. If we are so smart, why didn't we identify the bubbles, the SS tax swap or dotcom run up for what they were? 

We sat through the free love/std/aids merry go round, rise of the monetarists, Glass-Steagal and the ever next war that continue to in debt us and kill our children for no good reason. 

I say, let's give them a chance...they just might surprise us.

Mon, 10/25/2010 - 15:54 | 675988 MachoMan
MachoMan's picture

I dragged no less than a dozen students kicking and screaming through college degrees of various sorts on my coattails through forced group work.  The system is more of a crutch than benefit... 

Mon, 10/25/2010 - 14:22 | 675688 tony bonn
tony bonn's picture

mr kim - whether ones considers your rhetorical polish high or low would not matter because the content of your rhetoric is outstanding. you think outside of the box and offer truly original and valuable insights. i rank you among zh's top 3 authors.

i totally agree with you about the place of education and how it denudes the mind of critical thinking to be replaced by credentialism. i am not on speaking terms with some of my family because of my contempt for higher education or a demand for credentials when it is purely nonsense.

most people have so much money and religion invested in education that they can't think rationally. if you question its relevance in the workplace they haughtilly dismiss you for uttering blasphemies. these same asswipes who claim to be areligious would burn you at the stake in a minute for desecrating the alter of education.

yet education in most business related realms is merely a means of capitalizing 2d rate minds with enough knowledge to be marginally productive. education and iq are two different entities. any correlation between the two is due to self selection.

no doubt some fields such as physical and medical sciences benefit from formal education but this is not necessarily the case either. do psychologist cure anyone? what is the success rate of social workers? it isn't even close to being high enough for their conceited arrogances.

medicine? some say that america has the best medical system in the world. that is pure horseshit. american doctors' understandings of human health is woefully retarded and backward. the american doctor never met an operation or big pharm drug he didn't like. yet these things are inimical to good health in most cases.

i am in school now simply to satisfy the gatekeeper of employment and can't begin to tell you how trivial and unrelated the course content is to my former career level. it is childish information yet the fucktards at the gate insist upon it.

as such education is a total hoax and required payment to education nazis. whenever you ask a professor a question the answer is always the same - look it up. i have been doing that all of my life to great success. so who needs the asshole professor?

has any medical school warned of the dangers of cellular phone, fluoride, or sugar? no! if one had, each and every one of the foregoing would be outlawed or severely limited.

there is certainly a place for higher education but not nearly to the degree touted by the oligarchy. in fact most education is like vitamins - ingested and then pissed away. i have never nor will i ever in my career (where i made 6 figures) make use of any college math, computer science (it's too trivial), science, or humanities except rhetoric and that is only because i took it at a good school. so what's the irr on all of those pissed away vitamins?

understand one thing - no one is against knowledge - we need it and inquisitive minds. wisdom danced before the lord when he created the world. but the protocol for acquiring it is not always best served as it is now.

keep writing man. when you are insulted by 2d rate minds, bypass them. they are the same people who wanted to burn gallileo and are the neocons of today.

 

Mon, 10/25/2010 - 13:59 | 675587 Diamond Jim
Diamond Jim's picture

Let's go back in the time machine (the old "Way back machine")  to a time when kids appeared more motivated (though we still hated school) in schools, where kids actually learned something, and America was at its pinnacle in engineering, math and science. This was a time when 2+2 actually equaled 4, not 5 (and little Sally gets half credit for trying). Kids could actually write a legible and complete sentence, with the correct use of grammar and spelling (no computer spell check, could use a dictionary). Real American history was taught in schools to give kids a sense of where we came from (at present history has been re-written to show how bad the Founders were, how bad capitalism is, how bad America is for using up the world's resources etc). SAT scores were higher, kids that actually met the college entrance standards got in and did not have to go through 2 years of remedial education before they can actually start their degree. The up shot of the last point also meant that Mommy and Daddy didn't have to shell out life savings for little Johnny to waste two years of time to play catch up at a cost of $20k or so a year. We were physically fit due to that mean marine sergeant that kept the fat off us  (no McDonalds).

The point of all this is something has changed in education (and maybe society) since this old dinosaur graduated high school in the late 1960s. Ya' know learning all those names and dates in history; doing rote memorization in math (ask a kid today what 7 X 6 is, deer in the headlights response); taking a real science class instead of climate-Al Goreicle style environmental science; learning to read and write a complete thought on a piece of paper.....did allow me to take better advantage of the "system". Those 3-5 hours of actual home workper night, having to write term papers, book reports, science projects etc prepared me for life later when on the job I am actually expected to read, write, calculate, evaluate and perform. My parents were involved in my education and damn well expected me to learn, to evaluate, think and communicate. All this has changed today, kids spend more time exercising their thumbs on a miniature keyboard than doing a push up, get math answers from their I-pod, are more concerned with being in touch with their friends on worthless internet sites like facebook...yeah I am a dinosaur, I am comfortable with my advanced science degree, I took the time to make sure my kids are well educated, ready for life and professional career, and are mentally well balanced.

If you want to know what is wrong with education today...it boils down to: self-esteem is received from working hard at something it is not given out freely; a lack of having  textbooks for the kids to lug home to actually do homework; teachers unions blocking sorely needed competition to weed out schools that are failing and that block the dismissal of greedy top heavy administrators; passing little Johnny and Sally Muckinfutch when they fail;  teachers with no advanced degree teaching in high schools; dumbed down cirriculums to the lowest common denominator;  a mentality of ...if you pass  high school you are now entitled to go onto college; the continual showering of money to schools in response to failure; a lack of discipline and behavior; a lack of support by parents to make kids understand that education is an important passport to making something of one's self. Lastly, one does not need to go to college to suceed in life, but one does need to be able to read, write, do some arithmetic (without a calaculator), and be able to think critically and still have compassion for their fellow human being. None of this is being done in schools today....failure is assured.

 

In part 2 I will discuss my prediction prowess and show you my ability to write lots of words, go off topic, and pitch my latest Report on.........

Mon, 10/25/2010 - 14:13 | 675651 TraderTimm
TraderTimm's picture

Thoughtful post, Diamond Jim. I like how you just put it out there, not making any of the old "In my day" arguments that ring hollow. It comes across as a very authentic point of view.

I think we've strayed pretty far as well. You are right, the fundamental building blocks of education are either decayed or absent. Doesn't stop a smart kid from being curious and figuring things out (thank god for the internet at least), but for some that are frustrated and need a little help - there's nothing there to truly help them. Sure, pass most of the students even when their comprehension skill is minimal, but that paves over the problem without attacking the root cause.

I've said it before, but the priorities of educational institutions have changed into making a profit versus enriching the students minds with knowledge of history or science.

Who knows where this ruinous path will lead. Nowhere good, that is for sure.

Mon, 10/25/2010 - 14:08 | 675627 Sean7k
Sean7k's picture

That sums it up very nicely. Although, being oldfarts, we might fail to recognize the development of social networks as they will be applied in the future as a new model for "work groups" rather than individual contributions. 

Todays students are much more adept and accustomed to the nuances of this activity and the benefits that can be generated. 

I try to never underestimate the genius of each generation. Especially since we will experience it whether we want to or not. 

Mon, 10/25/2010 - 13:22 | 675440 Godisanhftbot
Godisanhftbot's picture

 Less blame on the schools

 

More blame on the tatooed, baggy pants tards that infest them

 

 

Mon, 10/25/2010 - 12:44 | 675303 cubanonradar
cubanonradar's picture

You can still extract what you need from these "institutions of higher learning". The key is to teach your children a healthy dose of skepticism before sending them out into the indoctrination machine. True, you still might lose one to the man but entrepeneurs are born, not made. My blue collar father pushed me to become an MD and as a Dermatologist I am able to work for myself and deliver a service that people want to pay for. Without that path I may not have had the opportunities or life I now have. My father however, made it his mission to pass on his world view and skepticism of politicians and authority so it allowed me to always question and not become a sheeple. This allowed me to get self educated on investing so after a thorough fleecing in the tech bubble with thanks to a highly recommended CFP, I took over my own investing and am happily riding the PM bull. Of course, I really worry about my kids' future in this country. Not sure where to go from here.

Mon, 10/25/2010 - 13:21 | 675285 michigan independant
michigan independant's picture

In the market economy the individual is free to act within the orbit of private property and the market. His choices are final. For his fellow men his actions are data which they must take into account in their own acting. The coordination of the autonomous actions of all individuals is accomplished by the operation of the market. Society does not tell a man what to do and what not to do. There is no need to enforce cooperation by special orders or prohibitions. Noncooperation penalizes itself.  Mises conveyed Utility as what puts you at ease as all do. You need not worry about there direction, but the thought of why they do not grasp this. Remember a man who did things right and what was his earthly reward? Focus on Stewadship and help those who you can since you can do no more. There are four soils to consider your attention.

ZH:  So look to TIPS and the bond auctions to determine when the denominator on the deflation scenario starts getting weaker. At that point, gold, and all resource commodities, will likely explode. Thus I will move incrementally move to get some off the table.... IMO only

Mon, 10/25/2010 - 12:25 | 675228 High Plains Drifter
High Plains Drifter's picture

Talking about education. How about that ITT Technical Institute. They don't just get you a job, they get you a career. Ha ha ha, I cannot believe how many suckers go to this place that calls itself a school. Now they are going to talk about how ITT is buying back some stock with dear old Herb Greenberg. So we have one crook talking about other crooks.

Mon, 10/25/2010 - 12:08 | 675160 Hook Line and S...
Hook Line and Sphincter's picture

At least you didn't post a video of you stroking yourself! 

(Good job on the predictions)

Mon, 10/25/2010 - 11:32 | 675070 Instant Karma
Instant Karma's picture

The schools are there. The teachers are there. The books and computers are there. The curriculum is there. What isn't there, often, is a motivated student. A lot of the kids are just dumb, and/or come out of homes that are a mess, so the kids lack any sense of structure. With all the new technology, the attention span of your averge kid is about 14.2 seconds.

Mon, 10/25/2010 - 11:26 | 675055 Stuck on Zero
Stuck on Zero's picture

What does it mean to be an academic?  It means to publish, publish, publish.  Well I have been on the editorial review boards of several prestigious scientific publications.  I rejected 90% of the papers submitted, mostly for poor conception, illogic, unsupported statements, lack of scientific discipline etc.  In every case the papers were printed anyway.  I complained to the editors and the response was always the same: "If we rejected the papers for bad science we wouldn't have anything to publish at all."  I have not been a reviewer since.  Recent studies show that over 90% of published science is pure junk.  Epidemiologists have never hit it right once.  What's my point?

What kind of a lesson is this for young people going to college?  Who's teaching in universities?  Do you want to spend four to ten years studying among these "academicians?"  If the answer is no but I need the degrees because society expects them then you deserve what you get.  If you answer that it doesn't matter it's a big social club then join the local Kiwanis, Rotary, or golf club. 

Mon, 10/25/2010 - 10:36 | 674939 Sean7k
Sean7k's picture

I want to say I enjoyed your first piece-this one not so much. Your investment prowess can be easily seen in the results you generate. However, you promised to discuss the education system and here you failed.

An apology for the rantings of a minority of your commentators might make you feel better, but then, the article promised something else entirely. The very thing you castigate the bankers and educators of doing, the desemination of propaganda, is what you have done here.

Further, you fail to entertain the concept that those Phd Economists and other academicians might be doing this for a reason and what that reason might be. That they are not so much ridged in their thinking, but working out a well developed strategy for the purposes of the elite. This may sound tinfoil hattish, but it is a possibility that bears scrutiny.

I hope your third installment returns to it's roots, I would enjoy that very much.

Mon, 10/25/2010 - 11:23 | 675054 curly
curly's picture

Sean7k, not tinfoil hat at all.  Just the aristocracy taking care of themselves and their own, screw the serfs, "let them eat cake", etc.  Been going on for centuries.  Paul Kennedy's book on rise and fall of great civilizations is probably a better explanation than US education 'sux'.  They're just serving their masters, so maybe you have a point about the education system rewarding the shrewd rather than the intelligent.

Mon, 10/25/2010 - 10:43 | 674950 Suisse
Suisse's picture

Sean, I agree with your assessment of the post. I find he has managed to write much, but say very little.

Mon, 10/25/2010 - 11:24 | 675057 Milestones
Milestones's picture

Sean, I too agree with your assessment. A very well written post. To the author, write to your premise; Education.  Milestones

Mon, 10/25/2010 - 10:25 | 674917 RacerX
RacerX's picture

There aren't enough hours in the day to read this guy's posts.

Mon, 10/25/2010 - 10:04 | 674868 YellowDog
YellowDog's picture

I love your writing.  Both my parents were educators and they made my life a living hell - not physically, but emotionally.  The ridgidity of thought, the expectation of absolute conformity was horrible.  It was like growing up in prison.

Mon, 10/25/2010 - 12:26 | 675232 High Plains Drifter
High Plains Drifter's picture

Damn, I thought I was the only one.

Mon, 10/25/2010 - 10:02 | 674862 liberal sodomy
liberal sodomy's picture

Any serious reference to negro dwarf tupac shakur delegitimizes any point you wish to make.

Mon, 10/25/2010 - 09:46 | 674819 Bartanist
Bartanist's picture

You are of course correct. This issue however is the parasite class that has determined amongst themselves that they will be the providers of debt and the collectors of taxes on all debts all over the entire world. It provides these parasites, with the power to determine whom they favor with debt and whom they deprive of debt the power and influence of despots, while at the same time they provide no tangible value to society.

We call these parasites "bankers".

If we could replace all debt with money we could eliminate the parasites who live on their unearned debt tax called interest.

Mon, 10/25/2010 - 09:42 | 674808 Cpl Hicks
Cpl Hicks's picture

only when I shed my elitist feelings about attending an Ivy League school and believing that nothing I learned at this institution could possibly be false, and only when I literally de-programmed my brain from the entire body of business academic knowledge I had accumulated within institutional academia did I finally start making economic predictions that consistently came true, year after year. 

LOL funny. I hope you didn't dislocate your arm patting yourself on the back. You must be the guy to stay away from at your school reunions.

I get a kick out of the use of the word literally; why not go all out and say you actually deprogrammed your brain?- then you could claim another set of credentials. Behavioral neurologist or psychologist or whatever.

Mon, 10/25/2010 - 09:38 | 674802 Godot
Godot's picture

I doubt anyone of sound mind actually accused you of being a conservative or even a neocon.  You probably just made that up to try and paint yourself and your opinions as somewhere in the middle.  When you lie, your  credibility dies.

I only got as far as your admission that you read Howard Zinn for content, as opposed to entertainment or humor.  Zinn is insane, as is anyone who takes him seriously. 

Mon, 10/25/2010 - 09:16 | 674757 newstreet
newstreet's picture

Reading this article was like watching somebody jerk off.

Mon, 10/25/2010 - 09:06 | 674735 AnAnonymous
AnAnonymous's picture

A life of debt?

Waoooo...

Actually, people bemoan more the loss of the capacity to go into debt than debt itself.

A life of debt would be a good life and a long life because he lives long who lives well.

Debt is that process which allows to bring into the present consumption that should have happened in a future (a because as many things in the future, it is uncertain)

So a person buying a house on debt is a person who is going to enjoy the house immediately and certainly and not in a more or less likely future at dusk of life.

This is extremelly important as the global capacity to build houses (of current days standards) might be declining parallely to oil in the future.

Once again, when it comes to debt, people do not moan debt itself but the loss of the capacity to go deeper into debt. 

On the contrary, people fight to prevent people from tasting debt because they want to enjoy the joy of taste exclusively.

Richest countries in the world are in debt and they all work to get deeper in debt. Debt is consumption now.

And the consumer status is far from being the worst status a life can offer.

Mon, 10/25/2010 - 09:16 | 674734 Mercury
Mercury's picture

Well don't hold your breath waiting for the government to fix it.

Thank your lucky stars that you're living during a focused, distributed content revolution.

Handy tools like Wikipedia, any number of specialist subject sights from the most basic how-to to cutting edge scientific paper posts that bypass the traditional peer-review journals: http://arxiv.org/

Try yourself or the kids out at http://www.khanacademy.org/  This guy is great.  I think MIT has most/all of it's lecture/coursework content online for free too.

While we bitch and moan and spend 100 grand to become 'Communications' majors some kid on the other side of the world in a mud hut is teaching himself calculus for free on a cheap laptop.

Get busy.

 

Mon, 10/25/2010 - 13:55 | 675572 OutLookingIn
OutLookingIn's picture

Mercury -Bingo!

Education is the acquiring and processing of information. No more. No less. The Internet and cheap laptops have taken this procedure, from the elites and spread it amongst the fertile people of the grass roots.

Get busy indeed! The article is right on when it states that just because, you have a degree from a "prestigious" institution, does not mean that you are intelligent! More than anything - brainwashed!

Mon, 10/25/2010 - 11:33 | 675071 MachoMan
MachoMan's picture

Kinda of a double edged sword.  The cost to access the information has dramatically declined, but at the expense of former educators/middle men/etc.  In other words, with the rise of the information age, literally the only purpose of going to school is to earn a degree.  The problem with the degree is that institutions have an inherent conflict of interest, on the one hand they need funding, but on the other they are supposed to act as fiduciaries for employers and other persons who may need to rely upon the degree's authenticity and implied knowledge imbued into the holder.  Needless to say, it's easy to understand why the former dominates the latter.

At any rate, all that does is offer an end around to our educational system...  sowing the seeds of their own demise.  Somewhere along the line, we're going to have to tell the educators that they're no longer needed...  and that those jobs will NOT be coming back. 

Mon, 10/25/2010 - 11:29 | 675066 BigJim
BigJim's picture

Yes, this is an amazing time to be alive if you thirst for knowledge.

It amazes me TPTB haven't shut it all down (yet)

Mon, 10/25/2010 - 12:35 | 675259 High Plains Drifter
High Plains Drifter's picture

"A tiny and closed fraternity of privileged men, elected by no one, and enjoying a monopoly sanctioned and licensed by government."

"The American people should be made aware of the trend toward monopolization of the great public information vehicles and the concentration of more and more power over public opinion in fewer and fewer hands."

"Every time I criticize what I consider to be excesses or faults in the news business, I am accused of repression, and the leaders of various media professional groups wave the First Amendment as they denounce me. That happens to be my amendment, too. It guarantees my free speech as it does their freedom of the press. There is room for all of us ­ and for our divergent views ­ under the First Amendment."

Spiro T. Agnew

 

 

And now , we look back and see what happened to him. He got closed out for daring to speak in this fashion. They were planning on wacking Nixon too for daring to speak about the "cabal" that was attempting to control American government but they figured it was too close to the last assassination that they had orchestrated on JFK.

Mon, 10/25/2010 - 10:24 | 674915 masterinchancery
masterinchancery's picture

There is nothing astounding about the sewer of public education; as we in the Chicago area have been observing for several decades, it is a patronage jobs and contracts system, which might accidentally yield a little education, but doesn't have to do so to retain its  political standing with support from the teachers unions, contractors, and innumerable democratic political hacks.  Since education isn't the purpose, it is rarely delivered.

Mon, 10/25/2010 - 12:30 | 675242 High Plains Drifter
High Plains Drifter's picture

The fallacy of this thing called "home ownership" comes to mind.  Just try not paying your property taxes and see what happens. Then you realize that nobody ever owns their own home anymore. We just rent it from the government. We live under the communist manifesto and most do not even know it.

Mon, 10/25/2010 - 08:58 | 674714 alexwest
alexwest's picture

again lots of verbal masturbation..

#My Past Predictions

listen pal .. u wanna be taken serious ... be serious.. stop #ucking talking about great were your predictions..  do you self  a favor.. will u

IF 're you  ANY GOOD ,, MAKE PREDICTION.. TRADE ON IT .. THEN SHOW PROVE OF MAKING MONEY AND SAY HERES PREDICTION HERES MONEY..

otherwise its so pathetic..  WHO GIVES THE #UCK WHAT you wrote in some blogs..

it so easy to cherry pick best cals, if any, and to forget abotu bad ones..

bottom line  SHOW ME A MONEY

alx

 

Mon, 10/25/2010 - 12:56 | 675350 RockyRacoon
RockyRacoon's picture

alexwest, you are a goober.

If money is your only criterion for success then your life is quite shallow.

Mon, 10/25/2010 - 10:07 | 674871 TraderTimm
TraderTimm's picture

Anyone who can't be bothered to type 'you' instead of the juvenile text-speak lazy-assed version 'u' - is better off not posting at all.

It is the text version of a backwards-cap-wearing semaphore. Might as well have "Poor Impulse Control" tattooed on your forehead.

Mon, 10/25/2010 - 12:36 | 675263 minus dog
minus dog's picture

What he said.

Mon, 10/25/2010 - 09:33 | 674796 i-dog
i-dog's picture

@alx: You are a complete fuckwit!! Have you ever put forward a complete sentence (or thought process) in your entire miserable life?

@John: Keep up the good work. I was impressed by your cool logic the first time I saw you interviewed by Keiser. You could, however, reduce the number of apologies ... the smart ones on here can see value for what it is.

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