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Why Do We Continue to Let Academics Dictate the Economy?
The big news as far as the markets are concerned is the Government reopening and the debt ceiling being extended. The debt ceiling technically was hit last May but no one bother to discuss that in the media. Why let a potential good crisis go to waste?
So the “debt ceiling” debate was pushed back to February 17 2014… just in time for the usual BS political campaigns to start for the 2014 Congressional elections. Honestly, if the whole situation wasn’t so pathetic it’d be amusing.
The markets have largely priced in a resolution at this point which is why they’re pulling back this morning. Gold and the precious metals are up significantly and the US Dollar is falling.
We’re now at support on the US Dollar. Let’s hope it holds.
Between this development and the nomination of Janet Yellen to Fed Chair, the monetary backdrop for the US will be more spending and more monetization. Yellen is yet another academic with no banking or business experience what-so-ever. This makes three in a row (Greenspan, Bernanke, and now Yellen). The results speak for themselves.
1) Three stock market bubbles
2) A US Dollar that has fallen 20% in value against a basket of global currencies
3) Falling real incomes
4) Higher costs of living
5) An unprecedented outsourcing of wealth from the US to OPEC, Wall Street, and China.
6) The US receiving its first credit downgrade.
And on and on.
By the way, I continue to hear how great the Fed is for stocks. However, since we were taken off the Gold standard Gold has outperformed stocks dramatically. In fact the only period in which stocks outperformed Gold as an asset class was the Tech Bubble.
Interesting considering we’re repeatedly told how Gold is a terrible investment and everyone’s retirement/ wealth should be allocated in stocks.
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Phoenix Capital Research
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In the words of the great John McLaughlin, "WRONG!!!"
I am beginning to think Graham is crazy - he locks himself in a closet and has Dominos delivery 2 pizzas each day slipping them under the door.
Remember two years ago Graham when you said that the EU was definitely going to collapse. Every single call you make you get wrong. I really don't see why ZH publishes your mad rants.
And who in their right mind would subscribe to your services when you are ALWAYS WRONG? BTW - I don't need you to tell me (for a fee) that I should buy more gold.
"Why Do We Continue to Let Academics Dictate the Economy?"
Because the alternative is to put WS Criminals or Prostitute Congressmen in charge of the economy.
The real question is why we don't force the Academics to prove their theories? Has anyone proven to us that Keynesian-ism works? Especially on the scale we are doing it? Keynes would not even agree to that
A fucking 3rd grader could figure out that if you spend more than you make...you're broke.
It's only a matter of time before you get a 'time out' in the corner and your allowance taken away.
Apparently it takes a PhD. in Economics to circumnavigate reality.
Because we are all fucking stupid!
Because we are fucking loosers!
Wrong question -- the Academics are working for the elite.
to the tune of 'Onward Christian Soldiers'.....
"FORWARD free shit soldiers, marching as to the mall, with the fiat of country going on before, Free shit, the royal master, leads against the debt,
FORWARD free shit soldiers, marching as to the mall "
fill in th rest as you wish
Because we elect academics...........and lawyers.
"Why Do We Continue to Let Academics Dictate the Economy?"
When you build castles in the sky you desperately need people who live in the clouds.
gold?
what kind of gold?
gold the metal? irrelevant in pricing but nice to have...
gold the ETF? irrelvant in pricing but convenient to sell quickly...
gold the currency? (AUX/USD AUX/EUR etc) easy to buy and sell and the only real way gold is priced. The volume of 'gold' that moves on the forex (interbank) market dwarfs all other 'gold' sales. As goes AUX so goes gold...unless there is some other sneaky derivative lurking that I do not know about...
Think about this...when one buys a currency in the Forex market one must also be short in another currency..think of it as the currency used to buy the first currency....AUX/USD can be bought or sold in huge amounts...
In the Forex market one could easily 'sell' many tons of gold as a way to hedge a dollar play...there is no real interest in the metal, it is just a tool. The result however is so large that it causes the price of the metal to move. This is what we have come to in the world of paper gold. All is well until some important player decides they want the actual metal.
When she was announced they had a female academic economist from Berkeley on an NPR talk show. I remember her saying that Yellen would do a great job because she has read "all the literature."
Enough said.
"Why Do We Continue to Let Academics Dictate the Economy?"
Who said "we" have any say in the matter?
Exactly!
"We" don't believe the newsy whorescum every time they announce the latest recipients of that so-called "Nobel Prize in Economics" as we know that no member of the Nobel family ever endowed such a thing, and that the Nobel familly officially doesn't recognize such a prize and "honor".
"We" are also cognizant of the "internalization business" of the top banks and hedge funds --- buying the vast majority of stock orders from the top brokerages (e*trade, Schwab, TD iTrade, etc.) which allows them not only control over the matching of buyer to seller, but foreknowledge of overall market trends in the public/retail end of things which, taken with HFT, allows for incredible rigging of the markets.
Thus, what the recent Swedish Central Bank Prize in Economics (what the Nobel family has repeatedly requested the American media to properly call it) was awarded for (regarding that paper on stock picking efficacy) doesn't actually exist!
A non-existent prize awarded for non-existent stuff?
... or the academics for that matter. How do the good ones make sure the "bought and paid for" academics don't get the job?
It isn't fair to call Greenspan an academic. He was a very successful member of a Wall Street investment bank for a long time before joining the Fed.
Phoenix CR: You ask, "Why Do We Continue to Let Academics Dictate the Economy?", as if there was something wrong with academics. Should they just stop studying and drink beer in their spare time? Would that make 'em smarter? Sorry, I really get tired of the "academic bashing".
Yes, yes, I know - they're out of touch with the real world, they lack common sense etc etc etc. But I stand by my other comment where I said Academics can be used for good or evil. I also assert that the bankers run the economy, and choose the academics to fulfill their goals.
Is this guy an academic?
http://www.youtube.com/watch?v=aiRbkCfld6Q
Or is he just some "non-academic" who studied this stuff for ten years? ( I really don't know, feel free to educate me on this one).
Is this guy a bad academic?
http://www.youtube.com/watch?v=umFnrvcS6AQ
What about Prof Steve Keen? Oh yes, he was "wrong" because he didn't forecast 21000 dollar "first home owner grants" propping up the Aussie housing market - is that a big failure?
Is there anything wrong with this work presented by this academic?
http://www.youtube.com/watch?v=akVL7QY0S8A
On the other hand, yes I have watched Inside Job and seen the example of a bad academic.
And yes, I've heard bad things about Yellen and, so far, nothing good. But I can't name any "good bankers" that should replace her.
So why are the good academics ignored? We all know they're out there.
How about, "A bunch of rich people rule the world and pay people to justify their actions. Because of this, the 'science' of economics has devolved into a religious cult. When the world was superstitious, rulers had 'divine right' and if only you obeyed the king then you would prosper, but now we are in the 'enlightened period', we have scientific proof that if only you'll put your faith in our economic doctrine, by allowing yourself to become poorer you will become richer!"
the real question is why do we put all our faith in the 'invisible hand'....we're just getting what we deserve for blind faith.
The alternative to the "invisible hand" of the free market is the iron fist of government control, which we know works badly from countless examples.
Stop thinking in a linear fashion, a global GDP requires more than one way to allocate resources, capitol and labor.
No "we" don't.
What makes you think the free shit army in the USSA can read or write? Certainly not math.
I came to realize that we were truly screwed after I discovered that the invisible hand was also made of iron. Bummer!
The alternative to the "invisible hand" of the free market is the iron fist of government control, which we know works badly from countless examples.
Why do you continue to post these rediculous articles? Every prediction you have made over the past 3 years has been wrong.
Academics is not the problem.. The real problem is that greenspan, bernanke and yellen are zionist jews.. And they are in those positions in order to support the parasitic zionist banking system.
Do you remember Adolf Hitler and Gotfried Feder? They stood against the same zionist banking cartel that is destroying America today: Big banks controlled mainly by zionist jews. That's why our grandparents went to war in 1941, to maintain the staus quo in financial system... We were told that was for freedom..
If American People don't get rid of those zionist parasites and restructure the financial sector, they'll keep plundering and destroying the entire country, just as they did in Germany from 1919 to 1933.
American People open your eyes..
I was discussing this with a friend yesterday, regarding Obama. We have a politician from the Labour party in the UK called Ed Milliband. He wiped billions off the stock market, even though he’s not in power, when he suggested he would control energy prices, if he gets in next; and he taught economics at Harvard!
Me: "Have you ever noticed that whenever there’s a big disaster, there’s always a Harvard man about"
Friend " Yeah I've been noticing that too".
The road to hell is paved with Ivy League degrees.
William Buckley said it best in the 80’s “Id rather be governed by the first 100 names in the phonebook that the entire faculty of Harvard”.
Almost like... Some sort of ruse... No...
I'd far rather have random people picked by throwing darts at phone book pages to be in charge, rather than the connected cabal.
Posted similar sentiments, at the same time, creepy.
Re "Yellen is yet another academic with no banking or business experience what-so-ever." : Would you really prefer a banker to be in charge? Aren't they already?
Academics are like guns: They can be used for good or evil, the safest one is the one you own and as long as you don't try and do anything stupid with the one you own, it shouldn't blow up in your face.
The REAL purpose of Yellen: continue the PONZI.
http://www.youtube.com/watch?v=iFDe5kUUyT0
(...and PLEASE SHARE: make this b*tch viral!)
Thanks for that. I'll look at it later. I'm not defending Yellen. From what I've read on ZH, she's just another BB. I'm just tired of the "academic bashing" and I'm saying there's both good and bad out there. While academics do have well-known flaws, half the reason academics look so bad is because TPTB only ever hire the "bad" ones. And to suggest that we could get better results from hiring "bankers and businessmen"? I guess we would get "better" results - because TPTB wouldn't have to pay one more academic - they'd just do it themselves. If TPTB only hire an academic that suits their agenda, replacing the academic with anyone else won't change anything.
Seems its the FSA (free shit army) dictating economic policy now days
Most Academics are FSA members now. Or FGA, for that matter (Free Grants Army).
Three academics in a row? Thats not the problem. The problem is the banking cartel. Who controls the banking cartel?
I don't know, but I do know it is forbidden to mention it explicitly, even here on ZH.