Max Keiser And Sandeep Jaitly Explain Why Modern Economics Is "Rubbish"

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Sat, 06/25/2011 - 14:22 | 1401269 Cassandra Syndrome
Cassandra Syndrome's picture

Hayek, Rothbard, Mises and Menger rule bitchez

Sat, 06/25/2011 - 14:39 | 1401295 Hugh G Rection
Hugh G Rection's picture

agreed.

 

Although... I have disproven the principle of diminishing marginal returns. The more ZH posts i read, I am not noticing any diminishing marginal utility.

Sat, 06/25/2011 - 14:49 | 1401314 darkpool2
darkpool2's picture

Errrrr. What about the law of declining marginal productivity? The more you read (zh) the less you get done

Sat, 06/25/2011 - 15:24 | 1401379 Cow
Cow's picture

+1000

Sat, 06/25/2011 - 15:51 | 1401418 spiral_eyes
spiral_eyes's picture

sorry to spam, but zh people, get in this chatroom and convince lulzsec to use their considerable internet firepower to break into goldman sachs/ jpm.

 

http://irc.lc/anonops/antisec/anonyops@@@

 

thank me later.

Sat, 06/25/2011 - 15:53 | 1401420 Quixotic_Not
Quixotic_Not's picture

Are you so sure they aren't reall agent provocateurs working for the bankster & politeer tribes?

Well, are ya punk?

Sat, 06/25/2011 - 16:21 | 1401474 spiral_eyes
spiral_eyes's picture

who cares? 

 

hacking the sack is hacking the sack.

Sat, 06/25/2011 - 18:04 | 1401612 UGrev
UGrev's picture

I think it's more like:
"The more I read ZH, the less I want to do".  In the actual sense of productivity towards GDP. Mainly because I realize just how much I'm being raped on a regular basis. 

Sat, 06/25/2011 - 23:21 | 1402132 pops
pops's picture

Word to your mother!

 

Sun, 06/26/2011 - 08:54 | 1402640 FEDbuster
FEDbuster's picture

Who is John Galt?

Sun, 06/26/2011 - 14:20 | 1403276 Michael
Michael's picture

I am John Galt Modified, 1, 2, 5, year sabbaticals between my last 3 jobs, for just that reason.

Sat, 06/25/2011 - 18:04 | 1401613 carbonmutant
carbonmutant's picture

Ding, Ding, Ding

We have a winner.

Sat, 06/25/2011 - 20:00 | 1401772 G-R-U-N-T
G-R-U-N-T's picture

"Errrrr. What about the law of declining marginal productivity? The more you read (zh) the less you get done"

Couldn't have said it better!!!! Abslolutely damn right!!!

Sat, 06/25/2011 - 14:47 | 1401319 WaterWings
WaterWings's picture

Donate.

Where else are ya gonna go with everyone else giving away all that free almond-flavored Kool-aid?

Sat, 06/25/2011 - 14:55 | 1401326 Hugh G Rection
Hugh G Rection's picture

Here's a donation from wiki, to all the asshat Keynesians.

 


The Austrian business cycle theory ("ABCT") attempts to explain business cycles through a set of ideas held by the heterodox Austrian School of economics. The theory views business cycles (or, as some Austrians prefer, "credit cycles") as the inevitable consequence of excessive growth inbank credit, exacerbated by inherently damaging and ineffective central bank policies, which cause interest rates to remain too low for too long, resulting in excessive credit creation, speculative economic bubbles and lowered savings.[1]

Proponents believe that a sustained period of low interest rates and excessive credit creation results in a volatile and unstable imbalance between saving and investment.[2] According to the theory, the business cycle unfolds in the following way: Low interest rates tend to stimulate borrowing from the banking system. This expansion of credit causes an expansion of the supply of money, through the money creation process in a fractional reserve banking system. It is asserted that this leads to an unsustainable credit-sourced boom during which the artificially stimulated borrowing seeks out diminishing investment opportunities. Though disputed, proponents hold that a credit-sourced boom results in widespreadmalinvestments. In the theory, a correction or "credit crunch" – commonly called a "recession" or "bust" – occurs when exponential credit creation cannot be sustained. Then the money supply suddenly and sharply contracts when markets finally "clear", causing resources to be reallocated back towards more efficient uses.

Given these perceived damaging and disruptive effects caused by what Austrian scholars believe to be volatile and unsustainable growth in credit-sourced money, many proponents (such as Murray Rothbard) advocate either heavy regulation of the banking system (strictly enforcing a policy offull reserves on the banks) or, more often, free banking.[3] The main proponents of the Austrian business cycle theory historically were Ludwig von Mises and Friedrich Hayek. Hayek won a Nobel Prize in economics in 1974 (shared with Gunnar Myrdal) in part for his work on this theory.[4][5]

The Austrian explanation of the business cycle varies significantly from the mainstream understanding of business cycles, and is generally rejected by mainstream economists. Economists such as Milton Friedman,[6][7] Gordon Tullock,[8] Bryan Caplan,[9] and Paul Krugman[10] have said that they regard the Austrian explanation as incorrect. Further, the Austrian school's methods of deriving theories have been criticized by mainstream economists as a priori "non-empirical" analysis[11] and differing from the practices of scientific theorizing, as widely conducted in economics.[9][12][13]

 

Sat, 06/25/2011 - 15:01 | 1401344 WaterWings
WaterWings's picture

Nice.

Here's a copy of Human Action.

Thu, 06/30/2011 - 15:08 | 1416492 JanaUsoFine
JanaUsoFine's picture

WaterWings,  Thanks for the link.  My brother has asked me to read this book.  I followed your link, downloaded it from Mises and I'm glad I did.  Thanks brother.  

Sat, 06/25/2011 - 15:01 | 1401346 Goldtoothchimp09
Goldtoothchimp09's picture

LOL -- yeah, how'd that "scientific theorizing" work out!  LOL

Sat, 06/25/2011 - 15:09 | 1401357 Hugh G Rection
Hugh G Rection's picture

Yeah. The first 3 paragraphs read like a newspaper, and wiki ends it with the Krugman holocaust denier perspective.  Scientific theorizing my ass.

Sat, 06/25/2011 - 16:34 | 1401488 Goldtoothchimp09
Goldtoothchimp09's picture

I was an Economics major -- There is one thing i can tell you for certain.

95% of all econ majors are uber dorks.  They take whatever the professor teaches as absolute gospel.  Said another way -- it's an area dominated by UBER-TOOLS that universally lack humanity!!

 

To quote Greenspan - "The was a flaw in my worldview" --- translated into human -- "I am an egg headed theorizing idiot"!!

Sat, 06/25/2011 - 22:23 | 1401522 cowdiddly
cowdiddly's picture

Yep and as far as economics being a science. Then why does Greenspan comment on the tech bubble as "Irrational exuberance" kinda sounds like human emotion huh?  facking micromanaging string pushers bringing punch bowls after everyone is already passed out drunk. Ummm, unless your a banksta crony.

Sat, 06/25/2011 - 20:39 | 1401833 Goldtoothchimp09
Goldtoothchimp09's picture

If you were an economics major and my comment irritated you....guess what .... You are a Dork and you know NOTHING.

You were indoctrinated into a sphere of UBER DORKDOM!  Your so-called profession has royally Fucked this world up beyond all recognition.

Sat, 06/25/2011 - 20:55 | 1401866 Rynak
Rynak's picture

Here's a more simple explanation: If the way you do things doesn't work, then someone else sponsering you does not fix the broken way you do things... it just allows you to ignore the defects longer, and accumulate more loss.

(There are cases, where borrowing money can be useful. They're cases where the only thing in the way of your success, are certain investments, which you cannot afford yet. However, stuff like this does not happen to an entire economy, and even if it would, this should not result in a tanking economy - just in one that does not run at full potential)

Sat, 06/25/2011 - 15:33 | 1401371 Quixotic_Not
Quixotic_Not's picture

The differential equations describe nothing. Economics is not about mathematics, it is about the human being.

Free market capitalism has been subverted and captured by Ivy League licensed criminals, and is nothing more than an algorithm-based version of three-card monte.

The reality is this: Economics is not about mathematics, it is about the bankster & politeer tribes servicing the global elite.

Systematically looting the wealth of nations is not a new paradigm -- Same shit, different century!

Tribal warlords are only as rich & powerful as the thugs they employ...

Sat, 06/25/2011 - 15:57 | 1401438 Temporalist
Temporalist's picture

"Economics is not about mathematics, it is about the human being."

This is why people in the financial media always say things like "Perception is reality;" people like dumbass Bob PissANTi.

They know that if they convince enough people that all is well they can survive just a little longer looting the laypeople.

I don't think it's about Peak Oil or Peak Resources or anything but Peak Reality.  I believe Ron Paul descirbes this as when people are hungry there is no greater reality.  44+ Million US citizens on SNAP (food stamps) and how long will that last?  44+ million potentially starving people.  That's a lot of Poptarts.  And as commodities have risen so will the cost of this program...

 

Here is a chart as a reminder:

http://www.shtfplan.com/headline-news/broke-and-hungry-this-chart-says-i...

Sat, 06/25/2011 - 16:18 | 1401462 Quixotic_Not
Quixotic_Not's picture

And the looting will continue until morale improves:

Basel Reaches Deal on TBTF Capital Requirements...


Global regulators said banks deemed too big to fail must hold as much as 2.5 percentage points in additional capital as part of efforts to prevent another financial crisis.
The additional capital surcharge will range from 1 percentage point to 2.5 percentage points, the Basel Committee on Banking Supervision said in a statement today. The extra fee must be met by banks building up their core reserves, and not by issuing so-called contingent capital instruments such as CoCo bonds, the committee said.

 

http://www.bloomberg.com/news/2011-06-25/basel-committee-reaches-deal-on...

The enshrinement of TBTF at the level of International policy legally marks the final end to any notion of phree society and markets.

No longer is there talk about removing or avoiding TBTF status - It has now legally become a permanent fixture.

New World Order Indeed...

Sat, 06/25/2011 - 15:49 | 1401413 Republi-Ken
Republi-Ken's picture

Yeah...Howabout The Laffer Curve?

What A Fucking Joke!

Free Lunch Tax Cuts Never Paid For As Magic Pixie Dust BullShit.

Or As David Stockman Says: "Republicans Bankrupted America"

Sat, 06/25/2011 - 18:17 | 1401624 mynhair
mynhair's picture

"Free Lunch Tax Cut" ?  You mean, as in spending isn't reduced to offset them?

Refer:  Libs

It's my money, not Pelousy's!

And cetainly, not yours, ya taker.

Sun, 06/26/2011 - 10:25 | 1402774 Urban Redneck
Urban Redneck's picture

The Laffer curve has nothing to do with free lunch tax cuts, unless the bulk of your economic understanding comes from the media (MSM or Ferris Bueller's Day Off).  Ceteris paribus (which is the first flaw of the economic pseudo-science, and upon which all other flaws compound) the Laffer curve does have to do with revenue optimization by manipulation of tax rates.  If you think either a 1% or a 99% effective tax rate could ever yield more tax revenue than a 35%, 50%, or 65% effective tax rate, then your problems are more substantial than just a lack of economic comprehension. 

Sat, 06/25/2011 - 20:30 | 1401807 Cassandra Syndrome
Cassandra Syndrome's picture

Humans act because they are restless. We are put into a state of restlessness from the tripe that the MSM pollute the masses with. We visit this site because it updates regularly, roughly on an hourly basis, and from within these new articles our marginal utility increases as we trade off the new junk of the MSM against the new articles here.

As the only price of visiting here is our subscription to our ISP, the trade off with another commodity is merely time preferenced and our higher preference ordinal system is merely based on new material being that much more satisfying than the new crap the MSM produce. Therefore our marginal utility for new articles here can never reduce unless there is nothing novel being presented here. The marginal utility for the same article reduces, but the propensity for our marginal utility can never reduce if Tyler keeps up the good work, especially when it is free and they substitution of other free articles elsewhere seldom effects our preference levels.

Sun, 06/26/2011 - 14:02 | 1403242 DrunkenMonkey
DrunkenMonkey's picture

Now that's what I call analysis. Go to the top of the class.

Sat, 06/25/2011 - 22:41 | 1402043 Double down
Double down's picture

Who the hell junked you?!  What you said was was really kind.

 

 

Sat, 06/25/2011 - 15:48 | 1401411 Republi-Ken
Republi-Ken's picture

YEAH...Howabout The Laffer Curve?

What A Fucking Joke!

Free Lunch Tax Cuts Never Paid For As Magic Pixie Dust BullShit.

 Or As David Stockman Says: "Republicans Bankrupted America"

Sun, 06/26/2011 - 15:56 | 1403473 Agent 440
Agent 440's picture

Hear him!

Sat, 06/25/2011 - 14:20 | 1401275 European American
European American's picture

"Knowledge is structured in Consciousness and Knowledge is different in different states of Consciousness"

Sat, 06/25/2011 - 15:57 | 1401437 Quixotic_Not
Quixotic_Not's picture

Spoken like a mongrel educated beyond his intellectual ability...

Sat, 06/25/2011 - 18:20 | 1401623 ebworthen
ebworthen's picture

Would you pass the bong already!?!?

Sat, 06/25/2011 - 14:21 | 1401276 Horatio Beanblower
Horatio Beanblower's picture

“Economics must not be relegated to classrooms and statistical offices and must not be left to esoteric circles. It is the philosophy of human life and action and concerns everybody and everything. It is the pith of civilization and of man’s human existence” – Ludwig von Mises

Sat, 06/25/2011 - 14:50 | 1401324 baby_BLYTHE
baby_BLYTHE's picture

Someone ought to staple this one to the chairsatan's forehead

"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."-Ludwig Von Mises

Sat, 06/25/2011 - 15:07 | 1401350 Hugh G Rection
Hugh G Rection's picture

IMO fuckhead Keynesians like the Chairsatan fully understand the Austrian school.  He wears a Keynesian mask to disguise his (and his handlers) intent of ushering in the total collapse of our currency system.  By selling the cheap credit, throw money at the problem solution to the mindless sheeple, it will end up maximizing the endgame profit for the Rotschild banking cartel.

 

I'm sure Bernank is a PM bull, not that he'd ever admit that.

Sat, 06/25/2011 - 20:44 | 1401840 Goldtoothchimp09
Goldtoothchimp09's picture

Baby Blythe - do you aspire to be the next Blythe Masters?  I hope not.

Sat, 06/25/2011 - 23:19 | 1402120 baby_BLYTHE
baby_BLYTHE's picture

haha, no.

I have been called Blythe since I was about 14 years old for my love of hardcore punk and heavy metal music.

I have no aspirations to work on Wallstreet, an investment bank nor a Hedge Fund.

Sun, 06/26/2011 - 16:45 | 1403555 Goldtoothchimp09
Goldtoothchimp09's picture

Cool - didn't think so.  You're pretty sharp for a young gal !!

Sun, 06/26/2011 - 04:58 | 1402519 Dan Alter
Dan Alter's picture

True, it is the mother logic of science. The science of economics problem is that economics is premised on the statment that we are "own profit maximizers", then states that profit is 'subjective' = "I don't know how to objectively measure profit".

There is such an objective measure of value and each of you use it unconsciously. Every life form uses the same objective measure the same way under all sets of circumstances each of us could be in. It is your time alive in your life form = 24 hours a day. One unit of time alive per unit time as measured by the speed of light. Notice we just got plugged into e = m^.

The question is, "How do we all try to use our time alive to get what we need to stay alive?". As little as possible. We are all unconscious own time cost minimizers because when we take to long to get what we need to stay alive = dead life form. Since we all use the same measure the same way it must serve as an Objective Measure of the General Welfare.

This means that in a conscious civilized society an exchange saves both sides of the exchange time. Should we decide to do this all together consciously then our political and economic problems will be solved.

 

Sat, 06/25/2011 - 14:21 | 1401277 bob_dabolina
bob_dabolina's picture

I thought philosophy, sociology, and psychology were studies of the human being. 

Sat, 06/25/2011 - 14:37 | 1401293 Oppressed In Ca...
Oppressed In California's picture

Here's a one sentence summary of sociology as currenly taught in our indoctrination camps colleges:  "Poverty sucks and America is evil."

Sat, 06/25/2011 - 15:32 | 1401384 Mr. Anonymous
Mr. Anonymous's picture

Aren't you late for your 12 o'clock Glenn Beck viewing? 

Sat, 06/25/2011 - 18:51 | 1401666 mynhair
mynhair's picture

The hourly ODummer viewing is better?

Do NOT follow this link or you will be banned from the site!