This page has been archived and commenting is disabled.

Forget Piketty's 700-Page Tome - Here Is The Shortest Economics Textbook Ever

Tyler Durden's picture




 

Forget the 700-plus-page Piketty 'socialism for all' tome; here is economics that everyone can understand.

Click image for link to website

And here they are... the 5 things they don't tell you about economics...

1. 95% of economics is common sense

You don’t need a degree to understand it

 

We’ve got this profession wrong; a lot of professional economists think what they do is too difficult for ordinary people. You’d be surprised how often these people are stupid enough to say things, at least in private, like ‘you wouldn’t understand what I do even if I explained it to you’. If you cannot explain it to other people, you have the problem.

 

People express strong opinions on all sorts of things despite not having the appropriate expertise: climate change, gay marriage, the Iraq War, nuclear power stations. But when it comes to economic issues, many people are not even interested, not to speak of not having a strong opinion about them. When was the last time you had a debate on the future of the Euro, inequality in China or the American manufacturing industry, despite the fact that these issues can have a huge impact on your life, wherever you live?

 

2. Economics is not a science

Despite what the experts want you to believe, there is more than one way of ‘doing’ economics

 

People have been led to believe that, like physics or chemistry, economics is a ‘science’, in which there is only one correct answer to everything; thus non-experts should simply accept the ‘professional consensus’ and stop thinking about it.

 

Contrary to what most economists would have you believe, there isn’t just one kind of economics – Neoclassical economics. In fact there are no less than nine different kinds, or schools, as they are often known. And none of these schools can claim superiority over others and still less monopoly over truth.

 

I accept that being suddenly asked to taste nine different flavours of ice cream when you had thought that there was only one plain vanilla can be quite overwhelming. In order to help, I attach here a simple table that will help you overcome your initial fear.

 

3. Economics is politics

Economic arguments are often justification for what politicians want to do anyway

 

Economics is a political argument. It is not – and can never be – a science.

 

Behind every economic policy and corporate action that affect our lives – the minimum wage, outsourcing, social security, food safety, pensions and whatnot – lies some economic theory that either has inspired those actions or, more frequently, is providing justification of what those in power want to do anyway.

 

Only when we know that there are different economic theories will we be able to tell those in power that they are wrong to tell us that ‘there is no alternative’ (TINA), as Margaret Thatcher once infamously put it in defence of her controversial policies.

 

4. Never trust an economist

It is one thing not to foresee the financial crisis; it’s another not to have changed anything since

 

Most economists were caught completely by surprise by the 2008 global financial crisis. Not only that, they have not been able to come up with decent solutions to the ongoing aftermaths of that crisis.

 

Given all this, economics seems to suffer from a serious case of megalomania.

 

The financial crisis has been a brutal reminder that we cannot leave our economy to professional economists and other ‘technocrats’. We should all get involved in its management – as active economic citizens.

 

5. We have to reclaim economics for the people

It’s too important to be left to the experts alone

 

You should be willing to challenge professional economists (and, yes, that includes me). They do not have a monopoly over the truth, even when it comes to economic matters.

 

Like many other things in life – learning to ride a bicycle, learning a new language, or learning to use your new tablet computer – being an active economic citizen gets easier over time, once you overcome the initial difficulties and keep practicing it.

 

Unless you are willing and able to challenge the professionals, challenge the experts, what’s the point of having a democracy?

 

There is no excuse for complacency. If you organize and demand reforms then a lot of amazing things happen, but it won’t come easy – we have to fight for it.

And there it is - all you need to know when watching the talking head bloviation and justification day after day...

Source: Penguin Group (buy here)

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 06/19/2014 - 13:10 | 4874308 LawsofPhysics
LawsofPhysics's picture

6.)  When Fraud is the status quo Possession is the law.

Thu, 06/19/2014 - 13:19 | 4874345 Skateboarder
Skateboarder's picture

0) Business Schools are evil and MBAs are made out of ego-inflating-gayness concentrate.

Thu, 06/19/2014 - 13:28 | 4874394 AlaricBalth
AlaricBalth's picture

A mathematician, an accountant and an economist apply for the same job.

The interviewer calls in the mathematician and asks "What do two plus two equal?" The mathematician replies "Four." The interviewer asks "Four, exactly?" The mathematician looks at the interviewer incredulously and says "Yes, four, exactly."

Then the interviewer calls in the accountant and asks the same question "What do two plus two equal?" The accountant says "On average, four - give or take ten percent, but on average, four."

Then the interviewer calls in the economist and poses the same question "What do two plus two equal?" The economist gets up, locks the door, closes the shade, sits down next to the interviewer and says "What do you want it to equal?" 

Thu, 06/19/2014 - 13:43 | 4874469 gh0atrider
gh0atrider's picture

Bitcoins are real money.  Sentimental dopes are angry at that simple fact.

Thu, 06/19/2014 - 14:18 | 4874594 bania
bania's picture

where's The Forward by Krugman?

Thu, 06/19/2014 - 14:37 | 4874692 Anusocracy
Anusocracy's picture

There are basically three competing economic systems: that of the foragers, that of the pharaohs, and that of the free market.

One steals too much, one thinks it can steal the right amount, and one rewards producers.

Thu, 06/19/2014 - 14:52 | 4874763 Marco
Marco's picture

A lot of the landed aristocracy, both old school (UK) and new school (South America) don't produce diddly ...

Thu, 06/19/2014 - 15:04 | 4874820 Anusocracy
Anusocracy's picture

Government and its cronies don't have to produce anything of value, or even anything needed.

Not when they can take resources from their subjects and use that to force them to do their bidding.

Thu, 06/19/2014 - 15:29 | 4874924 Four chan
Four chan's picture

( ) the reevaluation of all values is the worst thing that can happen to a person. at first.

Thu, 06/19/2014 - 17:01 | 4875262 macholatte
macholatte's picture

 

Definition of EXPERT

 

X is a mathematical expression for an unknown

Spurt is a drip of water under pressure

Therefore, an Expert is an unknown drip under pressure

 

 

Thu, 06/19/2014 - 17:43 | 4875382 zerozulu
zerozulu's picture

One rule in my economics textbook,

 

 

1. never borrow money.

Thu, 06/19/2014 - 18:29 | 4875549 Stuck on Zero
Stuck on Zero's picture

I understand that there are other versions of that book that cover: Social Science, Psychology, weather forecasting, investment analysis, and political science.

 

Thu, 06/19/2014 - 20:01 | 4875952 Badabing
Badabing's picture

Understand this,

The S&P, don't let it fool you. it plays on greed, what it actually is, is toxic financials  selling out our children's future to change the true number of it's worth 666. Everything from that low has been a lie.

 

  Its the banks that pump and dump to feed like a parasite on the hard working back of of the productive man, and  cheat and change the rules on the fly to draw us in and take all for pennies on the dollar.

 

   The world is changing, we are more connected than ever, the spin is of little effect.

You see the smoke is clearing and the mirrors are cracked the inbred families have lost control because we are becoming aware of the sting.

 if you want to fight than fight with what they hate, for us to have gold the real money.

 

  The S&P, all time high, with all the mark to fantasy equity, don't let them fool you it's shit. 

Thats our economics

Fri, 06/20/2014 - 00:37 | 4876958 Manthong
Manthong's picture

So tell me why Mr. Guillotine invented his famous product.

Fri, 06/20/2014 - 03:52 | 4877156 thisisjustarand...
thisisjustarandomusernameicreatedforzerohedge's picture

saying most economics is common sense because of the premise of supply and demand is like saying most of physics is common sense because the observation of gravity

as a ex-economics graduate who won't touch it with a ten foot pike, i'm as cynical as anyone about it.... and we can agree and disagree about the theories all we want. but to devolve the mathematics behind most advanced microeconomics to common sense is a little disengenious. 

 

Thu, 06/19/2014 - 19:59 | 4875940 Bro of the Sorr...
Bro of the Sorrowful Figure's picture

there's a caveat to that. i fully agree (after being a debt surf and then pulling myself completely out this year). one should never borrow money for personal consumption. however, if someone is borrowing money to create new capital goods, then debt is a useful and necessary tool.

Thu, 06/19/2014 - 21:58 | 4876422 WonderDawg
WonderDawg's picture

If the return on investment is greater than the cost of the money, it is a logical and legitimate strategy, instrumental in many cases.

Thu, 06/19/2014 - 23:41 | 4876827 Bro of the Sorr...
Bro of the Sorrowful Figure's picture

surfing debt, definitely a bro.

Fri, 06/20/2014 - 01:27 | 4877036 All Risk No Reward
All Risk No Reward's picture

1. Renting money to society at interest is prima facie fraud.

2. Renting money to society at interest is prima facie fraud.

3. Renting money to society at interest is prima facie fraud.

4. Renting money to society at interest is prima facie fraud.

5. Renting money to society at interest is prima facie fraud.

6. Renting money to society at interest is prima facie fraud.

7. Renting money to society at interest is prima facie fraud.

8. Renting money to society at interest is prima facie fraud.

9. Renting money to society at interest is prima facie fraud.

10. Renting money to society at interest is prima facie fraud.

The very foundation of our economy is FRAUDULENT and all it takes is a rational mind and some 5th grade math to understand it.

The problem is that people have been programmed to irrationally believe that something is true because the "authority" (financed by the Banksters) says so.

Debt Money Tyranny
http://www.keepandshare.com/doc/4768883/debtmoneytyranny-6-1-pdf-60k?tr=77

If I lend you $20 @ 5% interest, in one year your owe me $21 due to the accrual of $1 interest expense on your end and $1 interest asset on my end.

In one year, you owe me $21, yet only possess $20 because I own and control the the $1 you need to pay me back.

Just like losses, Muppets, you can't make it up on volume.

A bailout is when I create $20 @ 5% interest and pocket the $20 proceeds in my corporate front pocket and send your Muppet *ss the bill for $21 even though no Muppets received any money - all while telling the Muppets I'm doing it for them.

If I didn't see this con going on all around me I would not have believed it.

The above is veritas...  read it repeatedly until you understand it - or embrace Muppetism into your the serfdom that awaits you and yours.

Shed the appeal to authority programmed biological android routine and engage free and independent thought - that is your destiny that has been hidden from you by special interests that profit from your cognitive blindness.

This message is not to those who can see, it is to those who think they see but don't understand what I've posted above...  your whole society is anchored on fraud.

Fri, 06/20/2014 - 04:31 | 4877176 Bro of the Sorr...
Bro of the Sorrowful Figure's picture

debt based currency is the root of all evil

Fri, 06/20/2014 - 01:17 | 4877022 Kirk2NCC1701
Kirk2NCC1701's picture

"Neither a Lender nor Borrower be"  - Shakespeare (Hamlet)

"If you lend money to one of my people among you who is needy, do not treat it like a business deal; charge no interest." - Exodus 22-25.  

http://biblehub.com/exodus/22-25.htm

The Old Testament "classes the usurer with the shedder of blood, the defiler of his neighbor's wife, the oppressor of the poor, the spoiler by violence, the violator of the pledge, the idolater, and pronounces the woe upon them, that they who commit these iniquities shall surely die." Id. at 2. The usurer was put in the same category with extortioners, Sabbath-breakers, those who vex the fatherless and widows, dishonor parents and accept bribes (Ezekiel 22). Id. at 17. The usurer was also classed with the liar, the unrighteous, the backbiter, the slanderer and perjurer, and denied the right to inherit the New Jerusalem (Psalm 15). Id. The usurer is further classed with the meanest and lowest of men and the vilest of criminals (Ezekiel 18). Id.

http://www.openbible.info/topics/usury

Fri, 06/20/2014 - 01:32 | 4877043 All Risk No Reward
All Risk No Reward's picture

Everyone is society is forced to be a borrower because money is lent into existence, BY DEFINITION (the only exception being coinage, but that is trivial compared to the debt money).

YOU HAVE NO CHOICE TO BE IN DEBT - AND THAT'S THE FRAUD OF DEBT MONEY TYRANNY.

Debt Money Tyranny
http://www.keepandshare.com/doc/4768883/debtmoneytyranny-6-1-pdf-60k?tr=77

Debt is not a Choice
https://www.youtube.com/watch?v=juQc0rLdB-E

How to be a Crook
https://www.youtube.com/watch?v=2oHbwdNcHbc

Renaissance 2.0
https://www.youtube.com/watch?v=96c2wXcNA7A

Debunking Money
https://www.youtube.com/watch?v=7_yh4-Zi92Q

Fri, 06/20/2014 - 03:43 | 4877153 thisisjustarand...
thisisjustarandomusernameicreatedforzerohedge's picture

first rule we learned in finance in university was to never use your money and always use other people's money to invest

1. always borrow money.

not disagreeing with you or anything; just a funny... or sad contrast.

Thu, 06/19/2014 - 23:06 | 4876681 New_Meat
New_Meat's picture

fred, you really don't care about "at first" nor has there been any human "care" in the later stages.

Thu, 06/19/2014 - 19:01 | 4875665 August
August's picture

I met a nice college-age kid in South America.  His dad was the European chief for the Carlyle Group.

He was being groomed to run Argentine and Uruguayan holding for his family. Nice kid who played guitar, very popular with the girls.

Thu, 06/19/2014 - 19:35 | 4875821 shovelhead
shovelhead's picture

Sure they do.

Their money produces more money.

This is what extra money is supposed to do.

Thu, 06/19/2014 - 23:07 | 4876686 New_Meat
New_Meat's picture

don't cha' know

Thu, 06/19/2014 - 15:03 | 4874816 Flakmeister
Flakmeister's picture

Don't confuse "producers" with "exploiting labor arbitrage"....

Thu, 06/19/2014 - 17:18 | 4875306 flacon
flacon's picture

All those money-grubbing skilled workers are exploiting the corporations they are working for by DEMANDING and HOLDING HOSTAGE their employer with a MONEY RANSOME (also known as a pay cheque). 

Thu, 06/19/2014 - 18:28 | 4875545 Escrava Isaura
Escrava Isaura's picture

Did any Hedgers ‘of you’ read Piketty’s book? Or even the reviews at Amazon?

Anyone?

My bet, by reading some of the comments, the vast majority of you have absolutely NO clue of what you’re talking about….

None!

And that’s a shame.

Thu, 06/19/2014 - 18:48 | 4875606 economics9698
economics9698's picture

Should I?

Thu, 06/19/2014 - 19:37 | 4875831 jez
jez's picture

Yes, if you have nothing better to do. Know your enemy.

 

But only if you can steal a copy, or are given one.

Thu, 06/19/2014 - 21:10 | 4876212 UselessEater
UselessEater's picture

Know your enemy indeed.

Piketty's solution to crony-capitalism is a global wealth tax. Another IMF stooge painting a picture for global governance.

 

http://www.amazon.com/Capital-Twenty-First-Century-Thomas-Piketty/dp/067...

 

Thu, 06/19/2014 - 23:09 | 4876700 New_Meat
New_Meat's picture

know yourself

know your enemy

100 battles, you will never be in peril

but ya gotta' know

- Ned

{thanks to Sam}

Thu, 06/19/2014 - 18:46 | 4875607 economics9698
economics9698's picture

Well when I read he didn’t know the top tax rate under Hoover I kind of put it under the header of useless propaganda.  If I want to read lying bullshit I can open one of my textbooks I teach from.

Thu, 06/19/2014 - 23:55 | 4876856 PT
PT's picture

As the masses progressed from superstition to science, it was natural that they abandon religion and try and find a scientific equivalent.

From "Love God with all your heart, soul, mind, and strength, and love your neighbour as you love yourself"

To "Economics.  The science seeking to find the best way to distribute limited resources amongst unlimited wants and needs".

But as the former was corrupted and became, "Money is evil so you should give it all to me",  what made anyone think that the latter could escape unscathed?  With the former, you risk the wrath of the eternal God.  With the latter?
???
???
... The richest economists preach what the richest people pay them to preach.  The richest "Economics Schools" preach whatever the richest pay them to preach.  Alternative views struggle to survive unfunded.  The seeds of the downfall is well documented in their own doctrine!

Short answer?  Economics = Propaganda.

While Economics and Economists may start out with the noblest of intentions, their own doctrine suggests that those intentions will not last too long.

"I am King therefore I must be right because otherwise God would not allow me to be King"
vs
"I am rich therefore I must be right because otherwise the markets would not allow me to be rich!"

Or, as someone else put it:
http://www.nakedcapitalism.com/2011/04/blacklisted-economics-professor-found-dead-nc-publishes-his-last-letter.html

Thu, 06/19/2014 - 18:47 | 4875608 economics9698
economics9698's picture

Why read a liar?

Thu, 06/19/2014 - 18:49 | 4875609 economics9698
economics9698's picture

Useless bull shit.

Thu, 06/19/2014 - 19:02 | 4875669 Flakmeister
Flakmeister's picture

R > G, bitchez....

Thu, 06/19/2014 - 20:25 | 4876043 rubiconsolutions
rubiconsolutions's picture

"My bet, by reading some of the comments, the vast majority of you have absolutely NO clue of what you’re talking about…"

I don't have to eat a turd sandwich to know it tastes like shit. And yes, I read the reviews and decided to not waste my money. 

Thu, 06/19/2014 - 20:55 | 4876139 brucyy
brucyy's picture

What is a shame ? 

That we can't all sing together about the virtues of militarized hypertaxation for everyone except himself and his elite circle ?   

Do you know how close this guy is from the french socialist party , what a mess this country is in by following just a few of his ideas ?

how screwed you are if you take all he said at face value ?

Confirmation bias is a beautiful thing. So much possibilities . 

Thu, 06/19/2014 - 22:06 | 4876469 4 wheel drift
4 wheel drift's picture

NO clue of what you’re talking about….

None!

And that’s a shame.

 

-lol

 

all i need to know is that there is an implicit agreement between politicians (aka liars and thieves) and eko-no-mist (the equivalent of the voodoo priest of tribal times), iow the tool of the liars to fool the populi....  as times advanced, they saw the need to complicate simple common sense stuff measuring idiocies and injecting unintelligible gibberish, calling themselves "scientist" in the process....

the real shame is that the populi is so dumb that they never question the "wisdom" of all these shitheads all they are interested as members of the free shit army is how much shit the next liar in chief will wield out ....   of course hidden under a holy shroud of more gibberish by said "scientists"

 

FTS

Thu, 06/19/2014 - 18:30 | 4875516 deflator
deflator's picture

 There are basically three competing economic systems: that of the foragers, that of the pharaohs, and that of the free market.

One steals too much, one thinks it can steal the right amount, and one rewards producers.

 

The article just flew right over your head...

you obviously can only comprehend "free markets". Zero comprehension of fiat and why it has followers. Why promote the idea of free markets in a fiat world when it only suits the powers that be? 

If we were in a sound money world, what you have to say would be every bit as irrelevant because everyone would already know what you are trying to say.

Thu, 06/19/2014 - 19:57 | 4875933 Anusocracy
Anusocracy's picture

Why would they know?

You don't.

Thu, 06/19/2014 - 22:37 | 4876417 deflator
deflator's picture

 People such as yourself understand sound money andfree markets most everyone else does not. whos realityis relevant? ours or theirs?

 

 When the New Deal was passed most Americans(even the poorest of dirt farmers) knew it was a power grab by the government(not socialism).Afterwards, they voted for Conservatives(Rothbard and Mises type conservatives) for the next 30 years--did that stop the new deal? Politicians were all for the new deal because it allowed the government to grow beyond what it otherwise would have been able.Our government wasn't nearly as big as it is now because it was limited by the fact that it could not go full retard. Gold reserves were checks and balances. It only became the most beloved government program after the checks started rolling in...

and then Nixon closed the Gold window at the Federal Reserve where FRN's could be exchanged for Gold at $38 the ounce. The rest is history bitchez.

Thu, 06/19/2014 - 22:42 | 4876601 Anusocracy
Anusocracy's picture

Okay, thanks for elaborating.

I support the participation or non-participation in governance as only an individual's choice.

Thu, 06/19/2014 - 23:48 | 4876787 deflator
deflator's picture

me too but said choice is meaningless to the governing collective.(federal,state,county,city, financial, real estate, insurance, education and all encompasing homeland security) government.

Thu, 06/19/2014 - 14:58 | 4874794 Henry Chinaski
Henry Chinaski's picture

I found the problem.  TPTB saw this list and thought it said 1.95% of economics is common sense.

Thu, 06/19/2014 - 15:54 | 4875031 MsCreant
MsCreant's picture

Fonestar, BitBot. How goes it?

Thu, 06/19/2014 - 17:29 | 4875339 Thirtyseven
Thirtyseven's picture

BH7, that you?

Thu, 06/19/2014 - 19:28 | 4875783 soontobeblocked
soontobeblocked's picture

"Bitcoins are real money.

You state that as if it's supposed to carry some import.  Newsflash: my navel lint is currency.  By stating what you did, and by neglecting to impart anything more than your apparent ignorance, you might want to have a care with who you call a 'dope'.

Sentimental dopes are angry at that simple fact."

Your wishes are no less sentimental, emotion-based, and fear-based than those of fiat holders.

Having visited dozens of crypto currency blogs and participated on a near daily basis on more than one exchange and in more than one cc, I feel very safe in stating that the average Btc/Nmc/LTC/WTFC holder (and more specifically the traders) have less collective market knowledge than the average ZH reader.  They do have more than the Beanie Baby traders of years gone by but not by much. 

Thu, 06/19/2014 - 19:43 | 4875866 shovelhead
shovelhead's picture

^

Former beanie baby trader upgraded to Pokemon cards.

 

Thu, 06/19/2014 - 22:15 | 4876508 MontgomeryScott
MontgomeryScott's picture

"Newsflash: my navel lint is currency."

Something else about naval lint: You can hold it, see it, feel it, dig it out of your navel, and, well, be able to see it in your hand (or on your finger when you do whatever you like to do with it, like put it in your pocket along with the pocket lint that ends up there).

Bitcoin is like internet sex movies. It's SO 'two dimensional'. You can look at it on a screen, but when you try to hold it or even touch it, all you get is the feeling of the flat glass that you are looking at. If you're body is a positive ion generator, You might also get a slight tingle as the static electricity is discharged. I often wonder (in this light) if Bitcoin miners masturbate as they watch their computers do stuff like 'generating Bitcoins'). Perhaps an industrious and inventive Bitcoin miner might come up with the best way to get protein stains off of computer screens. He (or she) could actually market it to people who watch porn on the internet, and offer it for sale in some kind of currency that fills a REAL wallet (instead of that 'virtual wallet' bullshit).

Speaking of Beanie Babies, do you know anyone who might want to buy my collection of 'Pet Rocks'? I've also got a couple of 'Chia Pets' stashed away, just in case. One of them is Obama's bald head. It's called 'Chia Debt-Bro' (WB7 RULES!). Well, at least I can actually touch THEM, and they have WEIGHT and MASS like 'naval lint' does (and SO unlike 'Bitcoin').

Fri, 06/20/2014 - 00:05 | 4876872 PT
PT's picture

Your navel lint is rare too.  In the whole universe, it can only be found in YOUR navel!!!
Must be worth squillions!

;)

 

 

(Sorry.  It was too obvious.  I just haaaad to say it.)

Thu, 06/19/2014 - 21:23 | 4876259 nailgunnin4you
nailgunnin4you's picture

Bitcoins are real money.  Sentimental dopes are angry at that simple fact.

 

As an avid cryptofan myself, I think we should leave discussion of crypto to where it is relevant, zerohedge is one of the few sites that do give it fair and adequate coverage. Antagonism and repetition will not help garner adoption. 

Fri, 06/20/2014 - 00:39 | 4876960 Rock On Roger
Rock On Roger's picture

Two simple rules:

Don't spend more than you earn.

Save for a rainy day.

That's it, that's all.

Fri, 06/20/2014 - 01:35 | 4877047 Mercuryquicksilver
Mercuryquicksilver's picture

I just sold all my BTC and bought physical gold and silver. Fuck that shit, I'm glad to be out.

Fri, 06/20/2014 - 09:58 | 4877662 funthea
funthea's picture

"Bitcoins are real money"

It is quite possible that, for a time, it could be treated as such, given enough people accept that notion. However, given enough time and consideration, people will realize that bitcoin has no more favorable attributes than any other alt coin, based on the same parameters. Ergo, its true value is equal to the sum of the average of all its competitors. Bottom line... don't invest too much in this delusion. You're liable to lose big... at the expense of your family.

Thu, 06/19/2014 - 14:20 | 4874603 Stoploss
Stoploss's picture

Then the interviewer calls in the economist and poses the same question "What do two plus two equal?" The economist gets up, locks the door, closes the shade, sits down next to the interviewer and says "What do you want it to equal?"

 

That is the best description of the Common Core School Ciric i have ever seen so far.

Go steal a beer..

Thu, 06/19/2014 - 14:24 | 4874613 timmeh
timmeh's picture

in which numeric base?

Fri, 06/20/2014 - 01:14 | 4877020 Flakmeister
Flakmeister's picture

It equals 4 in in every possible numeric base except 3, where it equals 11....

Taking a flat Bayesian prior for the choice of numeric base would force on to to conclude that 2+2=4 always since the limit of (n-1)/n as n goes to infinity is 1..... 

If you don't like the answer, take it up with Bayes...

Thu, 06/19/2014 - 19:32 | 4875802 jez
jez's picture

The engineer says, "It's about four, but let's say four and a half to be on the safe side."

 

The stockbroker says, "Are you buying or selling?"

Thu, 06/19/2014 - 23:16 | 4876721 New_Meat
New_Meat's picture

three point nine nine nine nine

aw, shit, call it four, but let's add margin to be on the safe side and say four and a half

then the stock broker says: "you have margin?  I'll get it for you at only 8 percent!!!!"

- Ned

Fri, 06/20/2014 - 02:21 | 4877084 PT
PT's picture

Four.  An infinite number of fours.  There's plenty more fours where that came from.  Rehypothecation bitchez!

Or we can split the four into tranches ...

Fri, 06/20/2014 - 03:45 | 4877155 thisisjustarand...
thisisjustarandomusernameicreatedforzerohedge's picture

that's funny because I've heard the same joke 100 times but reversed

the finance guy says: present value or future value

economist says: it depends

accountant is the one that says: what do you want it to equal

Thu, 06/19/2014 - 14:00 | 4874539 Matt
Matt's picture

Business management degrees are probably far more useful than an economics degree.

I see this pamphlet serves mainly as an advertisement for a book the author is selling.

It would be nice to clearly seperate economic analysis with economic policy: Why are things the way they are, versus what government policies to implement to manipulate people into doing what the government wants.

Thu, 06/19/2014 - 16:46 | 4875230 nuclearsquid
nuclearsquid's picture

This is all bullshit.  I have a high-priced MBA.  Business schools are where the real villains send their entitled children.

 

Thu, 06/19/2014 - 17:24 | 4875327 IndyPat
IndyPat's picture

We'll then, welcome to ZH, Lord Vader.

Thu, 06/19/2014 - 21:06 | 4876198 chapaev's ghost
chapaev's ghost's picture

Business school is a scam. To run a business, you need to be able to add and subtract. Multiplication and division are optional. Higher math is actually counter-productive.

Reading and writing are nice, but should not be too finely honed. The ability to write memos in vaguely threatening and confusing language can be helpful (see below). The best way to achieve this effect is to have poor reading and writing skills.

If the business philosophy is exploitative in nature, you will need a strong background in how to manipulate people. Fear is usually more effective than lust, but a 70/30 split is probably most effective.

If the business philosophy is one of mutual benefit, you will need to have a strong background in leadership, ie how to inspire people. People tend to be most inspired by self-sacrifice in the leader, when that self-sacrifice is for the benefit of the people.

Good luck with the last bit.

 

 

Thu, 06/19/2014 - 18:32 | 4875564 sgt_doom
sgt_doom's picture

Not to detract from the mathematician, accountant and economist classic tale, but the real definition of economics:  the myth as to why a select few are born owning everything, while the vast majority are born owning nothing!

Thu, 06/19/2014 - 14:28 | 4874636 Jumbotron
Jumbotron's picture

"When Fraud is the status quo Possession is the law."

Possession by any means necessary is the law.  There, fixed it for ya.

Thu, 06/19/2014 - 14:36 | 4874678 Marco
Marco's picture

A more realistic natural law than anything Rothbard ever came up with, that's for sure.

Thu, 06/19/2014 - 17:46 | 4875389 NidStyles
NidStyles's picture

Uhh, Socrates is the one that wrote Natural Law...

Thu, 06/19/2014 - 19:47 | 4875886 shovelhead
shovelhead's picture

Well it certainly didn't build him a fan club.

Thu, 06/19/2014 - 15:00 | 4874803 Blues Traveler
Blues Traveler's picture

Just wait till oblunder uses the US military to enforce his domestic social program

Thu, 06/19/2014 - 16:12 | 4875108 ejmoosa
ejmoosa's picture

That would be a mistake....

Thu, 06/19/2014 - 17:03 | 4875267 DaddyO
DaddyO's picture

The DHS will be the tool of choice...

DaddyO

Thu, 06/19/2014 - 17:26 | 4875329 IndyPat
IndyPat's picture

...until the pay checks stop.

Thu, 06/19/2014 - 17:31 | 4875346 Thirtyseven
Thirtyseven's picture

Speaking of paychecks, how long before the corrupt local traffic ticket takers decide it isn't worth it, go home, and protect their families?

Thu, 06/19/2014 - 19:33 | 4875806 KickIce
KickIce's picture

When we get that far they will raid the farmers and offer food/shelter to the likes of the IRS, Homeland and FEMA and any other official they feel necessary.  At that point we will most certainly be in the final stage(s) of the empire.

Thu, 06/19/2014 - 16:51 | 4875239 LawsofPhysics
LawsofPhysics's picture

If you don't realize that that is implied in my statement, then I don't think your survival odds are good.

Thu, 06/19/2014 - 17:34 | 4875354 pods
pods's picture

I think most of us took it as self explanatory, not possession unless someone else wants it more than you.

pods

Thu, 06/19/2014 - 20:06 | 4875971 centerline
centerline's picture

Is a good edit LOP.  Adopt it.  We all agree here.

Thu, 06/19/2014 - 17:42 | 4875377 ZH Snob
ZH Snob's picture

7. Debt is not money.  Debt is owing or being owed.  Money is the   payment of said debt.  Debt cannot be settled with more debt, it can only be settled with something of real value. To argue that notes of debt have real value is akin to a dog chasing its tail.

 

Thu, 06/19/2014 - 23:20 | 4876740 New_Meat
New_Meat's picture

yo, dog, four legs good 'n shit, but to your correct comment ya gotta' add "eventually".

Thu, 06/19/2014 - 20:17 | 4876019 fromthebleachers
fromthebleachers's picture

All anyone needs to know about economics?

"When your outgo exceeds your income,

your upkeep becomes your downfall."

-Paul Harvey

Fri, 06/20/2014 - 09:00 | 4877472 skidsmango1
skidsmango1's picture

...it is just the fuzzy bullshit to justify the problems created by fiat money.  It wouldn't surprise me to see a chart that correlates the growth in the economic world and the national debt.

 

 

Fri, 06/20/2014 - 09:00 | 4877473 skidsmango1
skidsmango1's picture

...it is just the fuzzy bullshit to justify the problems created by fiat money.  It wouldn't surprise me to see a chart that correlates the growth in the economic world and the national debt.

 

 

Thu, 06/19/2014 - 13:11 | 4874309 TideFighter
TideFighter's picture

6. Economics is the Federal Reserve.

Thu, 06/19/2014 - 14:11 | 4874572 Anusocracy
Anusocracy's picture

The Federal Reserve is just one of the heads on the government Hydra.

Thu, 06/19/2014 - 14:35 | 4874681 Cap Matifou
Cap Matifou's picture

Or rather the long arm of the Money Masters, ellbow deep in the anus of the government and sock puppeting it.

Thu, 06/19/2014 - 14:45 | 4874729 detached.amusement
detached.amusement's picture

The government is just one of the heads of the bankster hydra

 

ftfy :)

Thu, 06/19/2014 - 15:13 | 4874859 Anusocracy
Anusocracy's picture

Government 10,000+ years old, Fed 101 years old. What?

On a long enough timeline, every control-seeking special interest group will have attained domination of government.

Thu, 06/19/2014 - 15:33 | 4874931 Four chan
Four chan's picture

obtained.

 

the fed has its owners/creators who go back all the way.

Thu, 06/19/2014 - 16:19 | 4875121 ChanceIs
ChanceIs's picture

Hmmmmm.

One attains orgasm.

One obtains other peoples wealth.

Politicians conflate the two - have a pretty good time immersed in their psychopathic machinations doing so - and make the rest of us miserable.

Fri, 06/20/2014 - 07:02 | 4877263 venturen
venturen's picture

6 Economics is the Rederal Reserve OWNERS WELL BEING

Thu, 06/19/2014 - 13:11 | 4874310 realitybiter
realitybiter's picture

same could be said about social and poli science, no?

If you can't test a hypothesis and repeat to perpetuity, it is not science.

Thu, 06/19/2014 - 13:22 | 4874359 madcows
madcows's picture

It is a philosophy.

Thu, 06/19/2014 - 13:24 | 4874372 NOTaREALmerican
NOTaREALmerican's picture

Well, in theory.

Thu, 06/19/2014 - 13:43 | 4874463 max2205
max2205's picture

It's all Chinese to me.....

Thu, 06/19/2014 - 14:26 | 4874632 rtalcott
rtalcott's picture

god is acid.

Thu, 06/19/2014 - 15:34 | 4874936 Four chan
Four chan's picture

acid is god

Thu, 06/19/2014 - 15:58 | 4875059 Itch
Itch's picture

jesus, this acid is great.

Thu, 06/19/2014 - 16:40 | 4875201 Vendetta
Vendetta's picture

dogs are little furry gods

Thu, 06/19/2014 - 18:25 | 4875534 Sirius Wonderblast
Sirius Wonderblast's picture

Try telling that to a cat.

Thu, 06/19/2014 - 13:25 | 4874379 GeorgeHayduke
GeorgeHayduke's picture

True. What is interesting is how in the USA economics is the study of capitalism, while any and all other potential theories about economics are called sociology.

Always remember, everything in this system is set up to keep the rich and powerful rich and powerful. Anything else is there to keep the plebs pacified.

Thu, 06/19/2014 - 16:28 | 4875158 ChanceIs
ChanceIs's picture

I knew econ was a scam after my first day in class.  Mathematicians use the x axis for the independent variable and the y fo the dependent.  First thing the econ pencil necks do is reverse the two.  An infinite slope in mathematics is therefore is zero elasticity in econ.  This was done to make the mathematicians studying econ become frustrated, wretch, leave and never "shime the light" on the voodoo conducted in the academy.

Thu, 06/19/2014 - 17:55 | 4875416 Flakmeister
Flakmeister's picture

Real mathematicians understand the role of convention and are not bound by it and they tend to work in more than 2-D, to whit what is the dependent variable in this equation?:  x2 + y2 + z2 = 4

 

Not that economists roll that way....

Thu, 06/19/2014 - 18:17 | 4875477 NidStyles
NidStyles's picture

Economics doesn't use dependencies, and for a good reason. There are no dependencies as they are externalized and stratified to make the problems less complex. 

 

The vast majority of good math that is used in economics is based on probability theory, which is nothing but variants of processes and systems built on events within other systems.  

 

You can't have dependencies in systems that large, unless you want to ignore half of what is that you are doing just to have a static model for something that is not linear or static in the first place.

 

Fuck man, it's no wonder Mathematicians don't understand economics, you barely understand that the problems are meant to be geometrically distrubutive... 

Thu, 06/19/2014 - 18:20 | 4875511 Flakmeister
Flakmeister's picture

Still making shit up, eh?

You are truly shameless...

Thu, 06/19/2014 - 18:28 | 4875543 NidStyles
NidStyles's picture

Still throwing ad-homs and strawmen as if they were valid arguments I see. 

Thu, 06/19/2014 - 19:04 | 4875674 Flakmeister
Flakmeister's picture

I didn't say you were stupid, I called out you out as a liar and that stated what you said was ignorant...

Care to try again, this time try using something factual...

Thu, 06/19/2014 - 19:14 | 4875716 NidStyles
NidStyles's picture

More of the same. 

Thu, 06/19/2014 - 19:28 | 4875785 Flakmeister
Flakmeister's picture

Care to explain your "Conservation of Entropy" for us?

Hedgetard....

Thu, 06/19/2014 - 19:33 | 4875809 NidStyles
NidStyles's picture

Who do you work for Flak? Why are you dodging the question?

 

Is it because you're a jobless unemployed stooge, or just another burger flipper living with your parents?

Thu, 06/19/2014 - 23:26 | 4876759 New_Meat
New_Meat's picture

everyone knows that the flak-puke is a pig-fucker who has a hard-on about odorless, colourless plant food and has no clue how the juice comes out of the plug in his ... er ... oh, yes, WALL.

- Ned

Thu, 06/19/2014 - 23:43 | 4876829 Flakmeister
Flakmeister's picture

Nothing but empty insults....

\zzzzzz

Thu, 06/19/2014 - 19:11 | 4875705 NOTaREALmerican
NOTaREALmerican's picture

Re:  There are no dependencies as they are externalized and stratified to make the problems less complex. 

I think it's best to just assume the assumptions are pulled out of their asses. 

Thu, 06/19/2014 - 20:15 | 4876006 centerline
centerline's picture

They fit equations to suit past (and at best current observations) - by any means necessary including the exclusion of critical data.

Results are then turned into political aggenda.

It is this simple.  Nothing more.  Just a fraud.

Thu, 06/19/2014 - 20:59 | 4876098 Tall Tom
Tall Tom's picture

if you define z = f(x, y) then z is the dependent variable...with the implied domain restrictions

Likewise it is true that if you define x = f(y, z) then x is the dependent variable...with the implied domain restrictions

Likewise it is true that if you define y = f(x, z) then y is the dependent variable....with theimplied domain restrictions.

 

It is a Sphere, centered at the origin, with a radius equal to 2.

 

FlakFRAU...

 

If I had wanted to confuse the innumerate then I would have queried what is the dependent variable in the equation, x + y = 4

 

Most would have, by habit, declared that y is dependent.

 

So your attempts at OBFUSCATION, FlakFRAU, fall short, once again.

 

You cannot even be HONEST about your GENDER. Thus every statement that you make is of questionable credibility.

 

Other than that, WOMAN, STOP BEING A BITCH.

Fri, 06/20/2014 - 00:31 | 4876497 Flakmeister
Flakmeister's picture

It's all clear now...

You are either autistic or an idiot-savant...

And yes, it was a sphere....

Thu, 06/19/2014 - 18:36 | 4875575 sgt_doom
sgt_doom's picture

I knew econ was a complete scam when Krugman was awarded the "Nobel Prize" by the Swedish central bank.

Thu, 06/19/2014 - 20:15 | 4876009 centerline
centerline's picture

+1

Thu, 06/19/2014 - 23:29 | 4876766 New_Meat
New_Meat's picture

and when Yassir Arafat was awarded the Peace Prize?

for that sake, when O was awarded the same prize on the come?

p'raps sayin' somethin' 'bout the institution?

Old Al b rollin' in his grave.

Thu, 06/19/2014 - 14:00 | 4874430 ebworthen
ebworthen's picture

Science is using measurements to discover what is already there.

Economics uses measurements to create something that was never there.

Thu, 06/19/2014 - 14:03 | 4874548 quikwit
quikwit's picture

So economics is ... engineering.  Social engineering.

Thu, 06/19/2014 - 21:50 | 4876377 Tall Tom
Tall Tom's picture

Keynesianism is a PLAN...not a theory. The name, "theory", was given to it as to lend to its "credibility".

Thu, 06/19/2014 - 14:47 | 4874740 detached.amusement
detached.amusement's picture

same can be said for climate science these days

 

yes, that bird's for you, flake

Thu, 06/19/2014 - 15:04 | 4874821 Flakmeister
Flakmeister's picture

Troll, troll, troll your boat....

Thu, 06/19/2014 - 17:50 | 4875399 NidStyles
NidStyles's picture

Of all people who should be called a troll...

Thu, 06/19/2014 - 17:59 | 4875429 Flakmeister
Flakmeister's picture

Did you find that physics degree? Bwah, hah, hah, hah...

That might have been the most-bald faced easily verifiable bullshit ever posted on ZH when you claimed to be physicist...

Were you drinking heavily at the time?

Thu, 06/19/2014 - 18:05 | 4875459 NidStyles
NidStyles's picture

I received my first degree from Univ of Illinois in 2002. My name is on the roster for the alumni of that year. 

Thu, 06/19/2014 - 18:21 | 4875519 Flakmeister
Flakmeister's picture

So you can answer this gimme question:

In any classical system, what is the sum of Lagrangian and Hamiltonian? The difference?

Thu, 06/19/2014 - 18:35 | 4875556 NidStyles
NidStyles's picture

Who exactly do you work for Flak? Do they pay you to sit on here and ask stupid questions, or is that just what you choose to do with your free-time and only in certain articles?

I've been asking you that for almost a year now, and when I get my answer, you will get something other than me laughing at your posting here. 

Thu, 06/19/2014 - 18:45 | 4875603 deflator
deflator's picture

 If someone were to take the article at face value they would conclude that the person that is "arguing" economics would be the .gov paid troll.

Thu, 06/19/2014 - 19:35 | 4875822 NidStyles
NidStyles's picture

Economics is just like everything the state tries to co-opt, it can be used for peaceful understanding, or to support violent thugs and empower them. 

Thu, 06/19/2014 - 20:16 | 4876016 centerline
centerline's picture

+1 on that statement Nid.  Precisely.

Thu, 06/19/2014 - 20:52 | 4876147 Anusocracy
Anusocracy's picture

It is especially good at manipulating morality for its own gain.

Thu, 06/19/2014 - 18:38 | 4875581 deflator
deflator's picture

In any classical system, what is the sum of Lagrangian and Hamiltonian? The difference?

 My second cousin because my moms half sisters dad was named Hamilton? lol

Thu, 06/19/2014 - 18:48 | 4875617 NidStyles
NidStyles's picture

It's a loaded question, and he thinks he's clever by asking me the same thing some other guy asked me last week on here. 

Thu, 06/19/2014 - 19:00 | 4875642 deflator
deflator's picture

 Womans always ask rhetorical questions--does this dress make my ass look big? I didn't see the question as being rhetorical.

 

 When women ask rhetorical questions always answer affirmatively. Does this dress make my ass look big? Hells yeah!

Thu, 06/19/2014 - 21:26 | 4876269 Tall Tom
Tall Tom's picture

You are correct. SHE is a woman. Good catch.

 

FlakFRAU.

Thu, 06/19/2014 - 19:06 | 4875683 Flakmeister
Flakmeister's picture

It is a very simple question....

Standard junior level Classical Mechanics...

Thu, 06/19/2014 - 19:15 | 4875720 NidStyles
NidStyles's picture

Still waiting for you to answer my question Flak, who do you work for?

 

Apparently you don't know who you work for because you haven't answered in a year. 

Thu, 06/19/2014 - 19:33 | 4875811 Flakmeister
Flakmeister's picture

I do private consulting and the going fee for my services is an annualized rate of a quarter yard....

So Mr. Physicist, what is the gradiant of a scalar potential? 

Thu, 06/19/2014 - 19:36 | 4875830 NidStyles
NidStyles's picture

Still dodging that question I see.

Thu, 06/19/2014 - 19:46 | 4875882 Flakmeister
Flakmeister's picture

Not at all, the answer flew over your head...

Thu, 06/19/2014 - 19:52 | 4875907 NidStyles
NidStyles's picture

No it was quite clear, you lied about who you worked for and what you did beforehand.

 

At one time you were a petro-engineer, now you're a private consultant.  So who do you work for Flak?

Thu, 06/19/2014 - 19:58 | 4875942 Flakmeister
Flakmeister's picture

Never claimed any petro-engineering (whatever that is)...

I could understand your confusion as I am one of the most knowledgeable people here about oil...

Good night hedgetard

BTW, look up quarter yard and see if you can figure it out...

Thu, 06/19/2014 - 19:58 | 4875943 Flakmeister
Flakmeister's picture

Never claimed any petro-engineering (whatever that is)...

I could understand your confusion as I am one of the most knowledgeable people here about oil...

Good night hedgetard

BTW, look up quarter yard and see if you can figure it out...

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