Guest Post: And This Year’s Nobel Prize In Doublethink Goes To…

Tyler Durden's picture

Submitted by Simon Black of Sovereign Man

And this year’s Nobel Prize in Doublethink goes to…

General Tommy Franks, the rather straight-talking former commander of
the war in Afghanistan way back in 2001, once described US defense
policy wonk Doug Feith as “the dumbest fucking guy on the planet.”

Feith, a bumbling architect of the failed Bush Doctrine, now has an
intellectual match in Christina Romer, the former Chairwoman of Barack
Obama’s Council of Economic Advisors.

Romer appeared Thursday on the Daily Ticker,
leaving no doubt that she should be the undisputed frontrunner for the
Nobel Committee’s much anticipated Doublethink Prize.  Warning, do not
watch this video while eating: food projectile WILL permanently damage
your computer.

Romer begins her remarks to the interviewer Aaron Task:  “There are
tools that we can use, and I think it’s shameful that we’re not using
them.” Trillions of dollars of government spending, debt monetization,
and money creation isn’t enough. Romer wants us digging ditches with

“If I have a complaint about policy, it’s that we’re not doing
enough.” Clearly, from the bank bailouts, to the systematic dismantling
of GM in favor of the union, to programs that incentivize home and auto
purchases, to stamping out all means of financial privacy, to trillion
dollar deficit spending, the government isn’t involved enough.

Romer goes on to say that the Federal Reserve’s plans to end the
second round of quantitative easing (QE2) in June “is a mistake. The
evidence is that it’s been very effective, and certainly QE1 was very
effective. I don’t understand why we’d be dialing back that tool because
I think it is certainly very helpful.”

$1.5 trillion dollars later and what do we have to show? 50,000 minimum wage workers flipping Big Macs. I’m lovin’ it.

screen capture And this years Nobel Prize in Doublethink goes to...

Next, Romer explains that “[quantitative easing] tends to lower
long-term interest rates, it tends to lower the price of the dollar…
both of those things are good for ordinary families.”

So, completely screwing the people who have worked hard and are
trying to save their money with sub-par interest rates that don’t keep
up with inflation is good for America. Paying more for food, fuel,
healthcare, insurance, state and local taxes, airfare, rent, building
materials, household chemicals, etc. is good for America.

(Yes Mr. William Dudley, the iPad 2 is as cheap as its predecessor–
but bear in mind that the iTunes music store is slowly, surreptitiously
raising its prices from 99 cents to $1.29… so the Apple deflation
argument is lost on me.)

Romer continues. “[Low interest rates] mean that it’s easier for consumers to afford borrowing.”

Precisely, that’s what American households need– more debt. I can’t
seem to recall a single instance in US history when consumers taking on
increasing levels of debt posed any danger to the economy.

Romer continues. “A lower price of the dollar tends to make our goods more competitive in foreign markets.”

This is one of the biggest logical fallacies in politics– that a weak
currency is good for an economy because it promotes exports. Right,
because so much of the US economy is based on manufacturing. Nevermind
that a weak currency imports higher input costs in the form of higher
energy prices, raw materials, and component parts from overseas.

A bewildered Aaron Task, now looking around for Ashton Kutcher to
appear out of nowhere, asks “… but isn’t it true that long-term rates
have risen since the Fed announced QE2 in August… and also… a lot of
Americans probably feel that a weaker dollar is hurting them, not
helping them…?”

Despite having just claimed that quantitative easing was successful
in keeping long-term interest rates low, Romer now says that “it’s hard
to evaluate what QE has done to long-term interest rates… because there
are lots of announcement effects.”

Apparently fluctuations in long-term interest rates based on
announcements or expectations of quantitative easing in fact have
nothing to do with quantitative easing. They’re due to the weather.

“What I can tell you,” she says, “is the academic studies that have
looked at this absolutely say that QE does what we thought it was going
to do.”

The smoking gun! Academic studies validate QE, brought to you by the
same folks who said that applying modern portfolio theory to a mega-pool
of liar loans would result in superior risk-adjusted returns. The same
folks who measure risk in sigma, who completely missed the boat on the
crisis to begin with… all declare QE a success.

Romer continues. “Everyone agrees that a lower price of the dollar… certainly tends to raise GDP.”

Yes, everyone agrees. Absolutely everyone in that little ivory tower
where Christina Romer lives with her funny mirrors and Paul Krugman.
Breaking windows is also good for GDP, as are natural disasters, nuclear
meltdowns, and civil wars fought by 13-year old soldiers with AK-47s.
Hooray Japan! Hooray Africa!

The truth is that a weak currency debases the standard of living. But that doesn’t seem to matter to Romer:

“And… on the price of the dollar, we’re not talking about what’s happening to your purchasing power here…”

Right, because purchasing power is completely irrelevant.  The US
government should continue conjuring money out of thin air, indebting
future generations, and recklessly spending on programs and initiatives
that simply don’t work because it’s good for nominal GDP, irrespective
of the damage it does to household living standards.

“Nothing says that you have to cut spending this year,” Romer
explains. “You can do a fiscal expansion this year but have it be part
of a package that ultimately gets the budget deficit down.” And
continues to kick the can down the road for other generations to deal

Romer typifies the mindset of the people making decisions in
government, and the sort of advisors in President Obama’s circle. The US
government is going on three years of massive, unprecedented fiscal and
monetary expansion. Yet it hasn’t made a dent in unemployment, and
prices are rising.

At this point, even Doug Feith would look at the situation and say,
“maybe we should reconsider our strategy.”  Romer, however, delivers her
lines with the demeanor of a concerned grandmother, and I can imagine
the north/south nods of many viewers who unquestionably absorb the
doublethink based solely on her delivery.

It reminds me of one of the best quotes from George Orwell’s 1984:

“In a way, the world-view of the Party imposed itself most
successfully on people incapable of understanding it. They could be made
to accept the most flagrant violations of reality, because they never
fully grasped the enormity of what was demanded of them, and were not
sufficiently interested in public events to notice what was happening.
By lack of understanding they remained sane. They simply swallowed
everything. . .”

Big Brother is watching you.

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Eireann go Brach's picture

You Fat cunt whore shrek lookalike

Dr. Porkchop's picture

Don't sugarcoat it man, let it all out.

rufusbird's picture

First good laugh I have had all day...

caconhma's picture

Holly Shit. She is a professor of one of the top-rated Universities. So much for the US educational system.

Fuck. The USA is doomed. We became a nation of perverted imbeciles.

OldTrooper's picture

Let's hope all her students stay in CA - or go back to China - after graduation.

Yen Cross's picture

Lets hope her student can post from (Tiananmen Square)?

Yen Cross's picture

The USA is anything but doomed you RED piece of Shit!

highwaytoserfdom's picture

 Scholes and Merton were at LTCM....  Scholes  takes it one more step into lunecy by not bounding his derivative pricing.  The list of Noble prize lunatics include Leon Cooper for using neural networks to take the risk out of FICO scores which cost the country a trillion in S&L.    Then the peace maker and Internet inventor.   I would say  in the economist pseudo science language  on the one hand these keynesians  are lunatics and in the other just jerk offs..  Oh yea I have a problem now that there is no inflation the down sized barf bag overflow stimulates more down sized paper towels clean ups..HOW CAN THE EMPLOYMENTS NUMBERS BE DEFENDED?  There were 926,000 people taken out of the denominator by the participation rate.....    Election rhetoric. by FED and manulipation by BLS....   








ATrillionSavedIsATrillionEarned's picture

reminded me of:
'the Bourbon line of French kings (who also ruled in Naples and Spain), of whom it was proverbially said,
"they learn nothing and forget nothing" '

Maybe we should always greet these people with an enthusiastic "Welcome to the unaccountable class!"

Holodomor2012's picture

One mans shrek lookalike is another mans shiksa.

FreeMoney Bernie's picture

I believe in order to be credible here you mean't to say "another man's shikabob"

Yen Cross's picture

I'll barbeque Kabobs any day for you.

Clueless Economist's picture

I concur with Ms Romer's analysis...only she does not go far enough...we need trillions more in stimulus...more QE's...more DEBT ...more printing presses ..arghhhhhhh....I deserve another NOBEL!!!  I love you JOHN MAYNARD!!!!!

johnnynaps's picture

Maybe they can print $$ for us peasants so we can pay our property taxes! Win for us, win for the government.

Bicycle Repairman's picture

No that is not a win for government.  The plan is to fill in this gigantic hole with the peasants wealth.  Current wealth and future wealth .

wisefool's picture

I have been begging my whole tenure on ZH for WB7 to do a visual parody of the American Sitcom "Threes' Company" (originally from England's banking system "man/kenseyian of the house") With Sheila Bair as Janet. And a Christina Romer as Chrissy snow. Of course, our intrepid Bernank is Jack Tripper, with TurboTax Timmy in the role of Don Knots.

why this is relevant for people so old to remember the series is that when Ms. Thigh master did not get her way in contract negotiations, they wrote her part just like romer's in this instance. Out of the house (former czar status) but still calling shots from a pay phone (academia).


EDIT: I have also found that google wants me to understand a series called "two and a half men." Thank you google.

YouBetYourLife's picture

I kept waiting for the host to turn to the camera, grinning, and then say "April Fool's!"

But it never happened  . . . 

Yen Cross's picture

Loose the hood and catch a Sythe!

OldTrooper's picture

I was expecting her to end the interview with "'s all folks!"

Bicycle Repairman's picture

Good one.  Don't forget the music that goes with it.

Twindrives's picture

Aunt B is the dumbest piece of shit in Washington D.C........outdone only by Barry the Africom.

ParaZite's picture

Fuck Shrek man, that's Chris Farley, back from the dead... either that, or it's a really bad ugly man in drag.

It's a tarp!

Audacity17's picture

I can't wait to put her in a van DOWN BY THE RIVER!!

Yen Cross's picture

FWIW I give you a plus 100! That offsets the junks!

Dr. Porkchop's picture

Ignorance is strength

Debt is wealth

War is peace

Holodomor2012's picture

Michelle Obama has a black Bush.

Andy_Jackson_Jihad's picture

hay hay hay...

The claims of fashion sense are equally flaberghasting.

Bunching up loose pants below the knee?

God I hate seeing those skeazy knickers put on a pedestal.


esch's picture

Got em in droves here in New Somalia.

Just ONCE I'd love to give one of these punks an 'atomic wedgie'.

YouBetYourLife's picture


"The air is the air.  What can be done?"

50 Obama play dollars to anyone who can ID that quote.


Rodent Freikorps's picture

McCOY: (to Kirk) "In this climate? If the heat doesn't get you, the thin
air will."

KIRK: "What do you mean, 'If both survive'?"
T'PAU: "This combat is to the death."

T'PAU: "The air is the air. What can be done?"

Amok Time

Yes_Questions's picture

A bewildered Aaron Task, now looking around for Ashton Kutcher to appear out of nowhere...


I was thinking more along the lines of Rod Serling standing in the corner with that grin and cigarette narrating an intro..





NOTW777's picture

obamites will love this

better than obiden

dbTX's picture

What a complete nit wit

Spitzer's picture

Puts to rest some of the conspiracy theories.

These retards really do believe their own bullshit !

rosiescenario's picture

A+...but you got to wonder who is really behind the curtain..actually not much to wonder about....who has done well????

Hedge Jobs's picture

its frigtening, they really do beleive this shit and whats worse is that it is exactly the sort of thing they are all teaching kids in university. Her husband David Romer is another keynesian extremist teacher at US unis as is his brother Greg Mankiw. Greg spoke of the gains from free trade, noting that outsourcing of jobs by U.S. companies is "probably a plus for the economy in the long run."

I dont know whether it puts to rest the conspiracy theories though spitzer. These people are either unbeleivably retarded individuals or a group of incredibly good manipulators.

Clueless Economist's picture

Wow this fat chick teaches economics at Cal Berkeley and advised the president????  That is beyond scary...almost as crazy as the crap I spout

Bleeping Fed's picture

It's crazy that someone would hire a person to tell them what they want to hear?  What planet do you live on?

Misean's picture

It's more fun playing with models that do what you tell them to do.

Vlad Tepid's picture

That's why all of mine are from Sweden and Japan.

Yen Cross's picture

I agree. There is a slight catch to that. They are all radioactive. Back to basics I guess! Rosie!

Bay of Pigs's picture

My ten year old nephew has a better handle on economics than this stupid bitch. Take another quaalude "professor".


Sequitur's picture

Great Scott! Chris Farley has been reincarnated . . . with a vagina.

Rick64's picture

Lol.  Proof of inflation. She is enormously inflated.