Testosterone And The Madness Of Central Bankers

Tyler Durden's picture

Authored by Doug French via The Mises Institute,

The stock market is at all-time highs. Argentina, a serial defaulter just sold $2.75 billion worth of debt with a 100-year maturity. Commercial real estate is booming again. All of this irrational exuberance while the world’s government’s are over indebted, economies are punk, and hostilities are prevalent everywhere.

Are memories too short? Or testosterone too high? Therese Huston, cognitive psychologist at Seattle University, writes for The New York Times,

Researchers have shown for years that men tend to be more confident about their intelligence and judgments than women, believing that solutions they’ve generated are better than they actually are.

 

This hubris could be tied to testosterone levels, and new research by Gideon Nave, a cognitive neuroscientist at the University of Pennsylvania, along with Amos Nadler at Western University in Ontario, reveals that high testosterone can make it harder to see the flaws in one’s reasoning.

Ms. Huston goes on to explain that people with high levels of testosterone have less activity in their “orbitofrontal cortex, a region just behind the eyes that’s essential for self-evaluation, decision making and impulse control.” 

Our orbitofrontal cortex keeps us in check, makes us look before we leap, and maybe not be so sure of ourselves, except for those with a heaping helping of testosterone.

Tests show that males tend to be very sure of themselves, even when wrong. Huston writes, “compared with women, men tend to think they’re much better than average.” 

Actually the point of Huston’s piece is to question the taking of testosterone supplements. Because, while a little more T may give older guys a bit more get up and go, supplement-taking men “were also rushed in their bad judgment and gave incorrect answers faster than the men with normal testosterone levels, while taking longer to generate correct answers.” 

In a piece for mises.org back in 2008 I wondered, “Does Neuroscience Support Austrian Theory?”

The focus of the piece was dopamine, a chemical in the brain that helps humans decide how to take actions that will result in rewards at the right time. The dopamine rush only happens when an unexpected windfall is made.

A drop in interest rates engineered by an expansion in liquidity by a central bank, “falsifies the businessman's calculation,” Ludwig von Mises explained in Human Action. “The result of such calculations is therefore misleading. They make some projects appear profitable and realizable which a correct calculation, based on an interest rate not manipulated by credit expansion, would have shown as unrealizable. Entrepreneurs embark upon the execution of such projects. A boom begins.”

Computational neuroscientists would add that not only do the projects appear profitable on paper but also that dopamine is released into the brains of entrepreneurs as they anticipate future profits. 

Ms. Huston refers to work done by two neuroscientists using 140 male traders in their experiment.

The results are disturbing. Men with boosted testosterone significantly overpriced assets compared with men who got the placebo, and they were slower to incorporate data about falling values into their trading decisions. In other words, they created a trading bubble that was slow to pop.

With the world’s central banks flooding the world with liquidity pushing interest rates to nearly nothing, bubbles emerge, pop, and emerge again. Yet people never learn.

John Coates, a Canadian-born research fellow in neuroscience and finance at the University of Cambridge and a former trader at Goldman Sachs and Deutsche Bank, believes he has the answer. “Once you start making above-average profits, as most people do during a bull market, you start getting this high,” he says. “I think it’s enough to pretty much squash memory” of previous bubbles.

Coates himself, equipped with a PhD in economics, has fallen victim to the testosterone highs. “I don’t think I ever would have hit on this if I hadn’t experienced it myself,” he says. “We have an unstable biology, and it’s very powerful.”

Powerful enough that someone as brilliant as Sir Isaac Newton went broke chasing the South Sea Bubble. Newton piled into South Sea Company shares early and sold early at a profit. However, “he then watched with some perturbation as stock in the company continued to rise.” 

Newton bought back in near the top and sold near the bottom. This prompted him to allegedly say, “I can calculate the movement of stars, but not the madness of men.” 

Central bankers, throughout history, have created madness. Their treachery continues unrelenting.

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BullyBearish's picture

mr. smellin be gellin trying to keep from being a felon...

Blue Balls's picture

Kill the MF'ers.  We need to decide if by rope or disbowlement?

realmoney2015's picture

End the Fed.

 

'nuff said. 

LawsofPhysics's picture

Not enough, retribution must be paid!

Mercury's picture
Testosterone And The Madness Of Central Bankers

Central bankers, throughout history, have created madness. Their treachery continues unrelenting.

 

So, Janet Yellen has actual balls?

Radical Marijuana's picture

Thanks for the reminder link to that article, PrayingMantis!

I agree that the BIS is the central banks' central banker.

It has the most supervising control of the public "money"

supplied through most of Globalized Neolithic Civilization.

 

"If history shows anything, it is that there’s no better way to justify relations founded on violence, to make such relations seem moral, than by reframing them in the language of debt — above all, because it immediately makes it seem that it’s the victim who’s doing something wrong."

— David Graerber

 

There are no reasonable doubts about the basic history of
the currently established systems of public governments
enforcing frauds by private banks
as described by Carroll Quigley:

"... another far-reaching goal, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole ... to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements. ... The apex of the system was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations. ... It must not be felt that the heads of the world's chief central banks were themselves substantive powers in world finance. They were not. Rather they were the technicians and agents of the dominant investment bankers of their own countries, who had raised them up, and who were perfectly capable of throwing them down. The substantive financial powers of the world were in the hands of these investment bankers who remained largely behind the scenes in their own unincorporated private banks. These formed a system of international cooperation and national dominance which was more private, more powerful, and more secret than that of their agents in the central banks."


BIS is a public face of the central banks' monetary policies,

which are effectively agents of trillionaire mass murderers.

realmoney2015's picture

I guess they can print a few trillion more dollars before they shut off the lights. But then again, frns would be worthless by then. 

Winston Churchill's picture

Whats wrong with piano wire . in a basement from meat hooks ?

UmbilicalMosqueSweeper's picture

I always liked the Chinese method of Death by a Thousand Cuts.

DaNuts's picture

Masturbation is the cure.

Blue Balls's picture

No pussy for cental bankers.  Vasoline forever.

silverer's picture

Your money is not safe in a bank.

choco bunny's picture

Agree.  I am not in the US and that is the case here too. has been for a long time in Sao Paulo

choco bunny's picture

This title caught my interest. They are all on drugs too. These people will bring down the world economic structures because they are power hungry.  But the timeing of the fall will probably not be known by anyone.  

Zerohedge and Shepwave have been providing timely advice as to what to do in the meantimne.  

Blue Balls's picture

Hire the mafia to kill them.  Cheap.  Effective.

PUNE's picture

in many countries the Mafia is in with the government.  Russia is a big one.  The S  wave guys do a good job of showing buy and sell signals just don't get too greedy is what I have learned.  Take it move by move

lester1's picture

All of the stock and bond markets of the world have been nationalized by Central Banks. The founding fathers of the USA knew a central bank would breed corruption and class warfare. That's why we didn't have a central bank from 1776-1913 and the country worked just fine.

 

When these fraudulent markets finally do crash, it's time to end the Federal Reserve once and for all. Go back to the US Treasury controlling our money supply and make it illegal for them to meddle in markets !!

rejected's picture

The US had 2 Central Banks called the Bank of the United States.

George Washington sign the authorization for the first one and Andrew Jackson killed the second.

Lost in translation's picture

Hang Yellen from a streetlight in Harlem.

Use rusty piano wire.

UmbilicalMosqueSweeper's picture

After a swift fair trial, of course.

LawsofPhysics's picture

Power corrupts.  Absolute power corrupts absolutely...

These fuckers in banking and finance will NOT indict themselves, YOU must take the power back and stop accepting fiat currency in exchange for the products of your labor!

NOTHING changes otherwise...

"Full Faith and Credit"

small axe's picture

System works perfectly. Bankers get richer and people get poorer.

Change will come when they steal too much. Are we there yet?

PUNE's picture

when they get caught it will change but who will catch them. 

LawsofPhysics's picture

LOL!  They have already been "caught" but they always seem to be able to steal from the U.S. taxpayer in order to bail themselves out!!!!  Have you already forgotten about Hank "tanks in the streets" Paulson going to congress and demanding that TARP/TALF/QE be funded/allowed?

Roll the motherfucking guillotines!!!

Nothing changes otherwise!

"Full Faith and Credit"

el buitre's picture

When they bail-in the banks and make "your" money in your checking and CD accounts, 401-K, MMF, and public and private pensions only available a drop at a time, then we will see how the American Smallhorn reacts.  Coming soon.  Stay tuned.  Either that or HI via helicopter money.  You can have all your money but you can't buy shit with it.  Need a wheelbarrow to buy a loaf of bread.  No Zim dolars FRN's in the trannie restroom toilets.

The Count's picture

Hitler knew what he was up against.

RagaMuffin's picture

How quaint in an age of algos and HFTs.............

JackMeOff's picture

Wonder if there is a cure for the US Economy's UTI?  We all know that Madam Yellen found a cure for hers.

Cordeezy's picture

Yellen needs estrogen pills to calm down?

www.escapeamazon.com

Nostradumbass's picture

Did you ever notice that it seems only countries that do not have central banks like North Korea, Venezuela, Russia, Libya, Iran etc. are the ones the west wants to spread "democracy" to? How kind of the internationalists to want to save these nations from themselves... Oy Vey!

rejected's picture

Russia does have a central bank. Sometimes I wonder if that is why they act wishy washy towards the arrogant west at times.

https://en.wikipedia.org/wiki/Central_Bank_of_Russia

Iran has a Central Bank but it's entirely owned by the government.

https://en.wikipedia.org/wiki/Central_Bank_of_the_Islamic_Republic_of_Iran

Venezuela also has a Central Bank

https://en.wikipedia.org/wiki/Central_Bank_of_Venezuela

North Korea also has a Central Bank

https://en.wikipedia.org/wiki/Central_Bank_of_the_Democratic_People%27s_...

Libya is no longer a functioning nation after our liberation.

Batman11's picture

1929 and 2008 are the same, bank credit going into non-productive lending.

1929 - stocks and financial speculation

2008 - real estate and financial speculation

https://cdn.opendemocracy.net/neweconomics/wp-content/uploads/sites/5/2017/04/Screen-Shot-2017-04-21-at-13.52.41.png

it's not hard to see.

Are the FED imbeciles or was this the plan?

You can even see the S&L crisis in the 1980s, the graph rises sharply.

Batman11's picture

Sometimes Central Banks just blow bubbles and burst them again.

Richard Werner’s “Princes of the Yen”. 

https://www.youtube.com/watch?v=p5Ac7ap_MAY

Japan 1989

The Asian Crisis

The Euro-zone Crisis

You have to work out the hidden agenda.

Global tightening.

What are they up to?

Blow the bubble, zero interest rates since 2008 – step 1

Burst the bubble – step 2.

What’s the hidden agenda?

Batman11's picture

Goldman Sach's vulture funds are looking forward to the good times.

 

UmbilicalMosqueSweeper's picture

"What' the hidden agenda?"

Grabbing the last copper penny?

rejected's picture

Are memories too short? Or testosterone too high? 

Any testosterone is ripped out of males while in the Femdom controlled school/indoctrination systems.  Pussies everywhere today, maybe it's too much estrogen?

el buitre's picture

And when that doesn't work we have estrogem mimetic Bisphenol-A in all the plastic containers.  A third of the male fish in the USSA rivers are turning into trannies like Moochelle.

Deep Snorkeler's picture

Computational neuroscientists

sound like a sinister cabal that

will do us no good.  I think the

conspiratorial weirdos should get

a hold of this and run with it.

Ntoxic8ingWave's picture

And yet Janet Yellin is in charge of the Fed and we are still headed the exact same way. It would certainly seem that they plan it this way...

el buitre's picture

It's all psy-ops.  Nobody wants to kick their grandma in the groin.  And why not vote for the Magic Mulatto as Bill Cosby set us such a good example as father and physician.  The Hildabeast was a definite miscalculation (unless they really wanted Trump - who the fuck knows the game plan of the Big Club?)

Solio's picture

It's not stealing if they are allowed to do it.

shovelhead's picture

How come all those flipper shows never feature those guys caught in the beartrap when their overleveraged McMansions go bidless?

Wouldn't it be fun to watch them pawn everything while the repoman drives their cars away while trying to make the nut and in the meanwhile the 80K resod is slowly dying as the realtor tells them to drop the price another 150K?

That's gotta ruin those testosterone levels.

CJgipper's picture

Nice feminist narrative, but the Fed leader is a woman (supposedly).

Quinvarius's picture

This girl power nonsense has been proven 100% wrong by Clinton Yellen and Legarde.  Whatever fake problems are invented around testosterone, they pale in comparison to poor initial judgement , excuse making, whining, and willingness to accept failure of women.

OverTheHedge's picture

Maggie Thatcher proved that women still like a good war (I'm not even going to start on Hilary), so what special benefits do women bring to the management team? My working experience has been women provide chaos, confusion, backstabbing and office politics, whereas men tend to bring a desire to resolve problems and do the job.

Does that make me racist?

VWAndy's picture

 Corruption at this scale we have today could not exist without the fiat magic. Look around! See all this stupid? Its all well funded. All the biggest stupid things society has done is being funded by fiat. Atomic bombs? Fiat funded. GM? Yep. The MIC? Yep bigtime. The Creepstate? Yeppers fully funded.

Radical Marijuana's picture

The article above was another example of superficially correct analysis based on excessive psychologizing, in ways which disregard the deeper issues about human ecology which drove the development of the relative frequencies and functioning of the kinds of brains and psychologies which currently prevail in Globalized Neolithic Civilization.

Human beings are reproducing gangs of robbers,

and money is measurement backed by murder.

The reproduction of those gangs of robbers drive chronic political problems, which developed death control systems through the history of warfare, to become most socially successful by becoming as deceitful and treacherous as possible, and which then became the foundation upon which to make and maintain the currently existing political economy built on public governments enforcing frauds by private banks. Those who are closer to the sources of the public "money" supplies, being made out of nothing as debts, have every possible incentive to rationalize and justify excuses to make more of that "money" out of nothing, due to the established systems allowing them to take a cut home and keep it.

ENFORCED FRAUDS ARE SYMBOLIC ROBBERIES.

Human beings, and Civilization, live as nested toroidal vortices engaged in entropic pumping of environmental energy flows, which necessarily match the principles and methods of organized crime, because the murder systems are the central controls of all other sociopolitical systems, and particularly back up the money systems. There are chronic political problems inherent in the nature of human life, which manifest through ways that human beings and Civilization operate as general energy systems, resulting in the ways that political economy is INSIDE human ecology. It was the history of the human ecology, whose most extreme forms of death control systems were the murder systems, that made and maintained the currently existing economy, and its related layers of psychologies of its various layers of participants.

"The Madness of Central Bankers" is inherent in the structure of the MAD Money As Debt systems, which are backed by the MAD Mutual Assured Destruction systems. Metal money backed by swords became paper money backed by gunpowder, which became electronic money backed by atomic weapons. About exponentially advancing technological capabilities and powers enabled political economy based on being able to enforce frauds become about exponentially more fraudulent. The essential feature of "The Madness of Central Bankers" is that being able to back up legalized lies with legalized violence never stops those lies from still being false. Rather, the more successful the financialization driven by public governments enforcing frauds by private banks, and the big corporations that grow up around those big banks, then the more psychotic that society actually becomes.

"The Madness of Central Bankers" is due to the excessively successfulness of controlling Civilization by applications of the methods of organized crime through the political processes, driving Civilization to become more and more criminally insane, since its foundation of enforced frauds become exponentially more fraudulent. Making "money" out of nothing as debts superficially ignores the principle of the conservation of energy, as well as superficially misunderstands the concept of entropy in the most absurdly backward ways possible. However, since those MAD systems based on being able to enforce frauds are symbolic robberies which make the robbers doing that become more and more relatively wealthy and politically powerful, the languages used publicly to discuss political economy are also MAD, as well as typically overindulge in some superficially correct analyses which excessively psychologize, rather than engage in deeper analysis of the ways that those financial frauds were enforced throughout human history, as Neolithic Civilization spread and grew to become Globalized Neolithic Civilization. 

It is NOT possible to have any better money systems without better murder systems to back those up. However, it is politically impossible for combined money/murder systems which developed to become most socially successful by becoming as fraudulent and deceitful as those could become, as well as are now endeavouring to continue to become exponentially more fraudulent, to admit and address the underlying nature of their problems, that being able to enforce frauds does NOT stop those from still being fundamentally fraudulent.

There is NO doubt that the conclusion to the article above was superficially correct:

"Central bankers, throughout history, have created madness.

Their treachery continues unrelenting."

There is NO doubt that the existing debt slavery systems have generated numbers which have become debt insanities. Since those debt controls were always actually backed by the death controls, runaway madness, in the form of runaway debt insanities, are set up to provoke death insanities. However, the relatively few people who more fully face those facts mostly continue to indulge in superficially correct analysis, whose tendencies towards excessive psychologizing enable them to avoid admitting and addressing the central issues of human ecologies, which are necessarily the death control systems, whose most extreme forms are the murder systems.

It is relatively easy to come up with a list of impossible ideals regarding "what money should be," as long as one does NOT engage in any deeper analysis of how and why MONEY IS MEASUREMENT BACKED BY MURDER, and therefore, any different money must be backed by some different murder. In that context, there is almost nothing but the central core of triumphant organized crime, namely public governments dominated by private banks, which are surrounded by layers of various controlled "opposition" groups, such as the Mises Institute, et alia ...

The great paradox of human intelligence is that it was primarily applied by some people in order to keep other people ignorant and afraid. It is politically impossible to admit and address the issues regarding the human death control systems, due to the existing systems having become most socially successful by becoming as dishonest about themselves as possible, and therefore, the systems supervised by the central bankers tend to be surrounded by "opposition" that is controlled by thinking in the same ways that the central bankers originally developed to enable them to function as better professional liars and immaculate hypocrites, which could publicly present enforced frauds as NOT being fraudulent, despite those actually thereby becoming exponentially more fraudulent.

"Their treachery continues unrelenting."

However, any realistic resolutions of those real problems would require different death control systems to back up different debt controls. The tragic trajectory now followed is for runaway debt insanities to provoke death insanities, out of which context MIGHT survive some different combined debt/death systems in the future, at which time the different schedules of reinforcement of the evolution of human ecologies will have driven different frequencies and functioning of their psychologies.