Guest Post: The Grand Failure Of Conventional Economics

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Mon, 04/04/2011 - 11:59 | 1132723 Note to self
Note to self's picture

"Well whud we sposed ta do, ya mo-ron?"  

Mon, 04/04/2011 - 12:24 | 1132848 covert
covert's picture

we have already seen evidence of this before in china and europe & it will get worse. we must either leave this planet or decend into slavery again.

http://covert2.wordpress.com

 

Mon, 04/04/2011 - 12:28 | 1132856 spiral_eyes
spiral_eyes's picture

bilderberg, bitchez

Mon, 04/04/2011 - 14:31 | 1133520 sgt_doom
sgt_doom's picture

Kudos and props to that remark, spiral_eyes!

"The next decade will see the complete failure of conventional economics. "

No offense to the blog poster, but this is kind of a nonsensical blog to begin with, I mean, by conventional econ you evidently are referring to the dismantling of the American economy, as so many others have been dismantled in the past by the global banking cartel.

I assume the blogger doesn't realize there is NO economy in the USA?  That when the Fantasy Finance Sector makes up 75% or more of the GDP, only "commerce" continues to exist (as it has since the first people roamed the Serengeti), but as there is NO media in the USA, so too there is NO economy anymore.

So how exactly can "conventional economics" exist when there's no economic system in place?

Many of the people who routinely view this site are aware that the USA is simply a gargantuan Ponzi scheme.

sgt_doom's revised reading list:

The Rich and Super-Rich, by Ferdinand Lundberg

The Predator State, by James K. Galbraith

Treasure Islands, by Nicholas Shaxson

Trade, Development and Foreign Debt, by Michael Hudson

Wall Street Capitalism: A Theory of the Bondholding Class, by E. Ray Canterbery

The Road Through 2012: Revolution or World War III, by David DeGraw

Brothers: The Hidden History of the Kennedy Years, by David Talbot

Death of the Liberal Class, by Chris Hedges

The Age of Unreason, by Susan Jacoby

The Handmaid's Tale, by Margaret Atwood (fiction, but extremely pertinent to our times) 

 

Mon, 04/04/2011 - 12:29 | 1132869 Sancho Ponzi
Sancho Ponzi's picture

"Suck it in and cope"

Mon, 04/04/2011 - 12:44 | 1132943 Highrev
Highrev's picture

The writing's on the wall and it doesn't get any clearer.

Tue, 04/05/2011 - 03:18 | 1135874 MisterAmbassador
MisterAmbassador's picture

You could give me credit for making most, if not all, of these same points in my previous posts, but nah.  My posts about population and oil increasing the carrying capacity of the planet were 'flagged as junk'.  Oh well.

Mon, 04/04/2011 - 12:03 | 1132734 TraderMark
TraderMark's picture

Good news folks.  The new paradigm service economy is going to add 50,000 McDonalds jobs on April 19th to replace those boring old manufacturing jobs that once existed.  $8.30 an hour, expect a good 500,000 applications for these highly sought after quality jobs, and let's get ready for the "better than expected" April payroll report in a month from now.

http://www.fundmymutualfund.com/2011/04/mcdonalds-mcd-set-to-hire-50000....

Mon, 04/04/2011 - 15:44 | 1133939 Matte_Black
Matte_Black's picture

Sir. Your conclusion is grossly incorrect.

I predict that a mere 300,000 will apply for the 50,000 jobs.

/kidding

Mon, 04/04/2011 - 12:05 | 1132749 crzyhun
crzyhun's picture

Let's see- Malthus, Paul E, McNamera, Club of Rome, and Gore...all in the same boat. When do we recognize this for what it is? It's falsehood. The economic growth issues are population issues, see in Japan are due to Zero family growth, same in China, same in Euro social land. This is mere eugenics in drag! And it is not cured by run away open boarders either. 

JUNK.

Mon, 04/04/2011 - 12:24 | 1132845 TDoS
TDoS's picture

You tried to smear the post as "Eugenics," though it never once suggested anything remotely close to that.  You failed to acknowledge any of the clear and well stated points in the post, or to refute them.  Then you yelled "Junk."

Junk is right.  

 

Mon, 04/04/2011 - 13:00 | 1133016 kridkrid
kridkrid's picture

People love their strawman... it excuses them from having to think.  That's a good 90% of American politics... how quickly can I label someone or something a Socialist or Nazi... make it political, make it emotional so I can intellectually "check out".  Same here... "eugenics"... provides cover to someone who doesn't want to consider the mathematics working against us in so many areas of our lives.

Mon, 04/04/2011 - 13:21 | 1133123 Rodent Freikorps
Rodent Freikorps's picture

Fuck you.

Forced abortions. Mass sterilization. A "Planetary Regime" with the power of life and death over American citizens.

The tyrannical fantasies of a madman? Or merely the opinions of the person now in control of science policy in the United States? Or both?

These ideas (among many other equally horrifying recommendations) were put forth by John Holdren, whom Barack Obama has recently appointed Director of the White House Office of Science and Technology Policy, Assistant to the President for Science and Technology, and Co-Chair of the President's Council of Advisors on Science and Technology -- informally known as the United States' Science Czar. In a book Holdren co-authored in 1977, the man now firmly in control of science policy in this country wrote that:

http://zombietime.com/john_holdren/

 

Mon, 04/04/2011 - 13:34 | 1133197 kridkrid
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bravo... an excellent example.

Mon, 04/04/2011 - 13:39 | 1133229 Rodent Freikorps
Rodent Freikorps's picture

I never thought the US would die with a whimper.

I still don't.

I just no longer will bet money on which side wins.

Mon, 04/04/2011 - 16:16 | 1134102 Matte_Black
Matte_Black's picture

+winning

Mon, 04/04/2011 - 22:02 | 1135386 TDoS
TDoS's picture

Even if what you're saying isn't complete hyperbole, it has ABSOLUTELY NOTHING to do with the article. The planet has a finite carrying capacity, this is not a matter of opinion. It's fucking math, plain and simple. The original post is describing how traditional economists do not consider this math in their analysis. Clearly, the people who found their way to Zerohedge via an Alex Jones link don't grasp this concept either.

Mon, 04/04/2011 - 14:44 | 1133593 ibjamming
ibjamming's picture

Bullshit...  Purge the country of blacks and mexicans and this place could be great again.  We've become mediocre because we MUST include brown people in everything.  It's like fielding a sports team and having to have a percentage of women on it.  Let's go back to using the best people have to offer...no interference.

Mon, 04/04/2011 - 15:34 | 1133868 immalittlepunchy
immalittlepunchy's picture

Wow, really?

Mon, 04/04/2011 - 16:16 | 1133967 Matte_Black
Matte_Black's picture

*rimshot* <canned laughter>

When a rich man uses the word 'nigger' you don't actually think he is referring to the color of a man's skin, do you?

 

Mon, 04/04/2011 - 16:23 | 1134155 Live_Free
Live_Free's picture

 It's like fielding a sports team and having to have a percentage of women on it. 

-Or like fielding a sports team and having to have a percentage of

crakcer a$$ white people on it.




Mon, 04/04/2011 - 19:31 | 1134881 Diogenes
Diogenes's picture

Hahahahahahahahaha he's got you there :)

Mon, 04/04/2011 - 22:03 | 1135392 TDoS
TDoS's picture

When exactly was this country "great?"  When it was exploiting the post World War 2 lack of European competition, when it was exploiting the free labor of the brown people you hate, or when it was stealing land from a whole host of other people you probably feel are beneath you?

Mon, 04/04/2011 - 13:05 | 1133041 disabledvet
disabledvet's picture

actually i agree with comment.  key problem in analysis in article is "population as problem."  actually ever increasing populations solves so called "growth" problem.  it's when population declines....

Mon, 04/04/2011 - 13:32 | 1133183 r101958
r101958's picture

Not!...the population could stay at 0 growth and finite resources would still deplete. The population explosion was caused, in large part, by that wonderful, inexpensive resource called oil.

Mon, 04/04/2011 - 16:19 | 1134120 LawsofPhysics
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and the Habor Bosch process.

Mon, 04/04/2011 - 16:48 | 1134284 BobPaulson
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Haber. But yeah. The "green revolution" just made the population problem worse.

Mon, 04/04/2011 - 12:11 | 1132778 cossack55
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SSSSSHHHHHH. Some of those little yellow folks might hear ya, and there is bunch of em'.

Mon, 04/04/2011 - 12:13 | 1132792 Rodent Freikorps
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Go Corn!

KoRn - Coming Undone

http://www.youtube.com/watch?v=VYG3f9vCUiQ

 

Mon, 04/04/2011 - 12:22 | 1132826 beastie
beastie's picture

Are economists retarded?

http://screwtapefiles.blogspot.com/2011/04/are-economists-retarded-part-...

Article explores why economists will never be right.

Mon, 04/04/2011 - 17:19 | 1134441 TheMerryPrankster
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economists are a trailing indicator.

Mon, 04/04/2011 - 19:35 | 1134891 Diogenes
Diogenes's picture

Saw an article recently where some psychologists tested people to find out if they made rational decisions as predicted by economic theory. The only people who behaved "rationally" were mathematicians and sociopaths.

Mon, 04/04/2011 - 12:26 | 1132852 dexter_morgan
dexter_morgan's picture

Reminds me of that scene in "Back to School" where Dangerfield is discussing things with the stuffy economics 'professor'. Hilarious. What the hell is a widget? OK, then go back to fantasyland.

Mon, 04/04/2011 - 12:34 | 1132890 Amish Hacker
Amish Hacker's picture

Another way to look at the End Game: start with the traditional family. Dad works as a carpenter, Mom stays home and raises Buddie and Sis. They can afford to own a home, and public schools actually teach. But the financial screws tighten, and now Mom has to work, too. What to do with the kids? No problemo. Turn the schools into places to warehouse the kids during the work day. The word "daycare" enters the language.

Again the screws tighten. Dad and/or Mom has to take a second job. Still, nearly impossible to maintain living standards, as wages stagnate and prices climb. What now? Credit cards for everyone! Borrow today's prosperity from tomorrow. But what comes after unpayable quantities of debt (which is where we are now)? 

Massive fail. Finis.

Mon, 04/04/2011 - 12:33 | 1132894 kaiserhoff
kaiserhoff's picture

So, we are at the end of history.  There will never again be any new technologies, no innovation, no substitution.  We've heard this shit many times before.

We will, at some point, be at the end of ever-expanding bureaucracy and banking cartels, but that's a good thing.  As to why anyone, anywhere, hires an economist..., excellent question;) 

Mon, 04/04/2011 - 12:37 | 1132898 kaiserhoff
kaiserhoff's picture

Mon, 04/04/2011 - 12:42 | 1132926 Milestones
Milestones's picture

Someone has finally zero'ed in on the absurdity of our world situation. A finite world cannot sustain infinite growth. Popullution IS the overwhelming world problem and the longer we ignore it the more desperate will the problems become for mans future. We either come to grips with it or it will resolve itself in a most brutal fashion in the next few decades.     Milestones

Mon, 04/04/2011 - 14:36 | 1133549 sgt_doom
sgt_doom's picture

Ya know, Milestones, the other day I read that the storms and climate in general, is getting windier and supposedly the scientists don't know why! (One wonders who all these scientists are the newsy stenographers are speak of?)

Obviously, since the study by NASA back in 2008, indicating the Earth is losing it's magnetosphere, the winds and storms will continue to worsen.

What I have just done is correlate the obvious.

Wish more American Zombie Consumertards could do likewise.

Mon, 04/04/2011 - 12:43 | 1132941 LawsofPhysics
LawsofPhysics's picture

Damn that finite planet.  Hedge according.  I mean what else can you really do? Every decision you make is, essentially, a hedge.

Mon, 04/04/2011 - 14:35 | 1133552 sgt_doom
sgt_doom's picture

Short the planet Earth, but go long on porn.....

Mon, 04/04/2011 - 12:55 | 1133004 BobPaulson
BobPaulson's picture

We need to shrink, but since every single metric we use for success measures it in terms of our exponential growth, we will do everything we can to secure our destruction. Easter Island. Sustainability is anathema to all current economic theories. My prediction is we will choose suicide over sustainability.

The required collapse will hurt. It won't be fun, even if you have a basement full of gold and firearms, IMO.

Mon, 04/04/2011 - 13:08 | 1133052 kridkrid
kridkrid's picture

The newer zeitgeist movie talks about the very word "economy".... I had never really given it much thought... "economics" has become about growth, is measured on growth, but the word itself: a. Careful, thrifty management of resources, such as money, materials, or labor.  It was a piercing thought... our system contradicts the very word.

Mon, 04/04/2011 - 13:07 | 1133048 airedalesrule
airedalesrule's picture

Moore's Law anybody?

Mon, 04/04/2011 - 16:47 | 1134270 Flakmeister
Flakmeister's picture

Examine the corresponding growth in energy to produce and power those cute little chips....Thermodynamics and Entropy (information) is a bitch....

Mon, 04/04/2011 - 13:07 | 1133051 sangell
sangell's picture

Spot on but, when the notion that bacteria caused infections was realized, it didn't mean every doctor ran to sterilize his instruments and wash his hands. They were 'old school' and still believed in the methods they had been taught.

So it is with our current economists and government officials. They are 'old school' too and know no other way than what their education and experience have taught them. I guess that means we are as doomed as  the patient with cholera was at the hands of an 18th century doctor.

Mon, 04/04/2011 - 13:07 | 1133061 falak pema
falak pema's picture

Planned obsolescence is now planned deflation and re-positionning in new economic areas. The fight to win on productivity will hotten-up further as the real economy shrinks as more money looks for fewer goods. All you have to do is look at two potentially high labour intensive, relatively high tech sectors : financial/banking services and editing/publishing services. Both use the english language as global medium. Both now massively move further and further down the outsourced/automated route; cutting back labour by standardizing automated, computerized, reporting-data processing systems, using third world countries to service global systems and save on home based 'entitlement' costs in developed countries. This is another global tsunami in the making via Internet and cloud computing. No getting away from it. Watch out brave new developed world; now having its juicy butt chewed to the bone! BY THE INTERNATIONAL ENTREPRENUEUR WHO RESPECTS NO NATIONAL FLAG. He is part of the oligarchy now!

Mon, 04/04/2011 - 13:15 | 1133102 TruthInSunshine
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Ex-Goldman Sachs executive and now head of the NY Federal Reserve, William Dudley, said "an iPad in every pot."

Mon, 04/04/2011 - 13:20 | 1133117 btdt
btdt's picture

Y

    A

        W

              N

Come on Tyler.

                        Sure it's Monday AM,

                                     but don't post slow and sleepy posts like this.

 

Mon, 04/04/2011 - 13:33 | 1133180 bbq on whitehou...
bbq on whitehouse lawn's picture

This is what other planets are for. This is what happened in the 14th century and why Europe had to explore new worlds.

Without new lands this tired old game ends. The US could break up into lots of states and default on its federal debt. Civil war 2.0 anyone?

So civil war 2, planet express, or default.

Of course kick the can is still working, so no need to be hasty.

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