• Sprott Money
    05/06/2016 - 06:03
    The US, in its own decline, is showing this same self-destructive tendency. The worse things get, the greater the inclination of the citizenry to say, “Carry on, everything’s fine.”

Guest Post: It's Time To Give Up On Mainstream Economics

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Mon, 12/05/2011 - 18:57 | 1948692 Mr Lennon Hendrix
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Give up, bitchez!

Mon, 12/05/2011 - 19:13 | 1948752 kill switch
kill switch's picture

We are all cought up in the devils bargin     Nothing to loose or gain, million year old carbon.

Mon, 12/05/2011 - 19:18 | 1948768 New_Meat
New_Meat's picture

I'm glad u are cought.  Don't know what a devils thingie is. U carryin' the Football tonight? - Ned

Mon, 12/05/2011 - 19:30 | 1948800 kill switch
kill switch's picture

thingie????? born 1994?

Mon, 12/05/2011 - 22:12 | 1949333 Popo
Popo's picture


"Modern central banking came into existence, of course, during a secular growth phase in the developed world funded by cheap energy. Its task for most of the past 100 years has been to regulate growth -- not to manage decline. Much of the commentary you saw prior to 2008, such as Ben Bernanke’s sincere lack of concern about a US housing bubble (“I guess I don’t buy your premise. It’s a pretty unlikely possibility. We’ve never had a decline in house prices on a nationwide basis...”) is, of course, duplicated today as we confront a similar endgame in sovereign debt."

Mon, 12/05/2011 - 19:20 | 1948772 Coldfire
Coldfire's picture

+Joni Mitchell song.

Mon, 12/05/2011 - 19:28 | 1948794 kill switch
kill switch's picture

That is correct,,, Thanx my friend...my spelling = vodka

Mon, 12/05/2011 - 19:30 | 1948802 Triggernometry
Triggernometry's picture

So Keyne's wasn't the messiah??

Mon, 12/05/2011 - 19:33 | 1948806 JW n FL
JW n FL's picture



no the Jews were.

Mon, 12/05/2011 - 19:34 | 1948812 kill switch
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Mon, 12/05/2011 - 21:01 | 1949072 i-dog
i-dog's picture

You've mellowed! Is it the vodka?

Mon, 12/05/2011 - 19:49 | 1948845 sosoome
sosoome's picture

Depends on the meaning of "we".

Mon, 12/05/2011 - 20:50 | 1949026 He_Who Carried ...
He_Who Carried The Sun's picture

Cute charts, really.

Mon, 12/05/2011 - 18:59 | 1948702 Racer
Racer's picture

Can't see the wood for the trees in other words

Mon, 12/05/2011 - 19:01 | 1948705 MassDecep
MassDecep's picture

Prepare for war, bitchez!

It's their solution.

Mon, 12/05/2011 - 19:01 | 1948711 Turd Ferguson
Turd Ferguson's picture

Here's your money shot:

"One possible explanation for this blind-spot towards debt is that the economics profession is largely in service to the political class."

I like Chris Martenson but, personally, I think he lost a lot of credibility once he started doing podcast interviews of anonymous, mystery dorks who run PM-based websites. 

Mon, 12/05/2011 - 19:07 | 1948735 Seize Mars
Seize Mars's picture

I like Chris Martenson but, personally, I think he lost a lot of credibility once he started doing podcast interviews of anonymous, mystery dorks who run PM-based websites. 


Good one. Keep up the good work, Turdski!

Mon, 12/05/2011 - 19:10 | 1948743 kito
kito's picture

the guy has to eat. as long as he is true to his word, and finds it necessary to open as many eyes as possible to the problem, why should it matter what audience he chooses? 

Mon, 12/05/2011 - 21:15 | 1949132 BigJim
BigJim's picture

nice eye for irony you got there

Mon, 12/05/2011 - 21:46 | 1949243 TheFourthStooge-ing
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Mon, 12/05/2011 - 21:49 | 1949254 I am a Man I am...
I am a Man I am Forty's picture

turd was interviewed by chris

Mon, 12/05/2011 - 19:17 | 1948764 slewie the pi-rat
slewie the pi-rat's picture

wiping up coffee, here...

earlier, i followed a GATA link to this (paste):  ["Raw Inflation via IMF"]

Economist and former banker Alasdair Macleod writes today that raw monetary inflation via the cashing of Special Drawing Rights from the International Monetary Fund likely will be the next step by central banks to save bankrupt nations, last week's currency swaps having been undertaken to rescue insolvent banks.

...which led to this macleod-ing:  Currency swaps – the beginning of a 'solution'?   which is a possible contextual framework for what the banksters did last week which people might want to consider...

Mon, 12/05/2011 - 20:06 | 1948887 mtomato2
mtomato2's picture

Coffee at 6:15 Eastern?  Better you should indulge in bananas and milk...

Mon, 12/05/2011 - 19:26 | 1948784 bugs_
bugs_'s picture

anonymous mystery dorks just are not tenure track keynesians?

Mon, 12/05/2011 - 20:04 | 1948880 Ignatius
Ignatius's picture

"One possible explanation for this blind-spot towards debt is that the economics profession is largely in service to the political class."

The money shot, indeed.  But not because listening to Chris M. makes my head implode.

Debt is the blindspot. 

What did Rothschild mean when he said "Let me issue a nations currency and I care not who makes its laws"?

The banks make an enormous rentier's income from issuing our debt based money and then sees to the development of an 'economics profession' filled with those who never address this profound fact. We are paying rent for the privilege of having these wankers issue our currency.

How much income?  Look at the bailouts.  Note the lack of prosecutions.  Note the police head-crackers all over the OWS movement.  Enough money to buy the whole damn system.


Mon, 12/05/2011 - 20:42 | 1949007 trav7777
trav7777's picture

how much income?

Gee...no accounting has been done.  So let's look around...at the FUCKING PALACES the Rothschilds had.  Couple of them got a barony, IIRC.  Ain't seen no baron with digs as big as the King's.  Just google around at their palaces and landholdings and put yourself back when they were built and imagine that shit.

THAT is wealth, THAT is power.

Mon, 12/05/2011 - 23:14 | 1949553 Freebird
Freebird's picture

Behind every fortune, a crime

Mon, 12/05/2011 - 20:37 | 1948990 DavosSherman
DavosSherman's picture

I heart CM, I blogged the DG for him for about a year.  

Great guy.  


I have to give him credit---personally if someone is an effing psycopath I think they need to be called out, called an assclown, a moron.  But maybe CM doesn't want to not turn anyone off from visiting his site.  He is also quite a class act.

"One possible explanation for this blind-spot towards debt is that the economics profession is largely in service to the political class."

Personally, I think being politically correct is incorrect to our fellow human beings.  In the old days, assclowns who serviced the political class got the pointy end of a pitchfork or the hot end of a torch.  Bernanke and the Goldmanites would have lasted a week in the old days and our for-fathers wouldn't put up with this BS that we are stuck with today.

Just sayin...

Mon, 12/05/2011 - 19:06 | 1948733 Snakeeyes
Snakeeyes's picture

Krugman continues to crow that huge debt to GDP doesn't matter. Mostly because Krugman puts his Socialist/Progressive beliefts add of his economic thought process.

Look at this Real GDP in the EU was 0.2% last quarter. 86% Debt to GDP. How can this NOT end badly? Answer? IT WILL! They need HARRY POTTER!!!!!!


Mon, 12/05/2011 - 19:08 | 1948737 blu
blu's picture

Mainstream economics became disconnected from reality the moment it failed to recognize that industrial growth had nothing whatever to do with market forces or rational players, and everything to do with the stored bonanza that is OIL.

End of oil (or even a reduction in extraction) is the end of growth. Period. Economists will never admit this as doing so will make a laughing stock of 100 years of their windy pontifications concerning markets, and their Schools of Economics will empty like sieves once students realize that economics was just the voodoo soothsayer of the industrial age.

Mon, 12/05/2011 - 19:24 | 1948780 Caviar Emptor
Caviar Emptor's picture

their Schools of Economics will empty like sieves once students realize that economics was just the voodoo soothsayer of the industrial age.

Oh yeah? What about the rise of online gaming and dating? That's growth to the moon

Mon, 12/05/2011 - 19:31 | 1948799 blu
blu's picture

Someone might argue that the above account should include COAL and natgas as alternatives, so that the free-wheeling growth machine can roll on for another 1,000 years. I say that is incorrect. The industrial age was born from the womb of coal, but did not become a global phenomenon until uses were found for OIL, which is both easier to burn and transport, is the key enabler of dominate industries such as auto manufacturing and transportation, and distills into literally countless derivatives of nearly indescribable value.

No. It is CRUDE OIL or nothing, and any misstep in the extraction and distribution in crude oil will be the death knell for 100 years of break-neck growth, and the end of all the curious and distracting hand-waving that attempted to explain growth-derived-from-oil as instead a manifestation of some kind of inevitable human genius rather than as a one-time temporary gift from the Universe.

Mon, 12/05/2011 - 19:37 | 1948822 Caviar Emptor
Caviar Emptor's picture

US SUV sales are up again, after taking a breather in 09-10

Mon, 12/05/2011 - 19:43 | 1948835 kito
kito's picture

its mostly prepper sales this time..........

Mon, 12/05/2011 - 19:44 | 1948836 blu
blu's picture

... which is the only proof you need that the industrial propaganda machine is still hitting on all cylinders. These guys are Hell-bent on taking us all over the entropy cliff with them.

Mon, 12/05/2011 - 20:09 | 1948892 Caviar Emptor
Caviar Emptor's picture

Of course. Oil has dictated politics since the 1860s. 

Mon, 12/05/2011 - 20:10 | 1948893 Caviar Emptor
Caviar Emptor's picture


Mon, 12/05/2011 - 20:08 | 1948891 LooseLee
LooseLee's picture

Unfortunately, these same boobs will be offering them for sale at 50% retail in the next 3 years due to the cost of oil! And the moron dealers wlll be offering 50% of retail for the very same SUV! What a bunch of IDIIOT MORONS! Good luck to you!

Mon, 12/05/2011 - 20:46 | 1949014 trav7777
trav7777's picture


The oil age was it...look at the population graph, look how much things changed just in one lifetime.  You went from the age of horses and walking to machines that could go faster than seemed conceivable.  It became possible to travel across the entire continent in relatively short time.  Then the car, then the airplane...to fly around the world.  I mean, think about that, something we take for granted, FLIGHT, was the dream of man for 10,000 years...since there were dreams.

And only in the past 110 years was it achieved...because of oil.  So many things has it enabled, truly the piss of the Gods.

Coal dug by hand has a higher EROI, but oil is about POWER.  Oil does more work at a faster rate...those who understand physics understand that power is what matters, not work.

We're gonna need a helluva lotta nuclear plants LOL

Mon, 12/05/2011 - 19:12 | 1948749 bob_dabolina
bob_dabolina's picture

The labor force participation rate for the manufacturing industry is as low as it was in 1940?

No bueno

Mon, 12/05/2011 - 19:17 | 1948751 knukles
knukles's picture

It's all because, regardless of the school of economics one's lens is comprised of, each simply distorting reality differently, fail to give full credence to the fact that this is a debt deleveraging, not a normal business cyclical downturn.
Further exacerbating this collective delusion is that the politicians regardless of national orientation or socio/political affiliation, simply cannot retreat from their normalized expansionary economic promises to everybody for everything whilst looting the nation's treasure practices.
Indeed, the funds available for bread, circuses and basic services have been in the aggregate, squandered.
There is no more money, they've already printed too much.



Mon, 12/05/2011 - 20:07 | 1948888 mtomato2
mtomato2's picture

"Debt deleveraging" FTW!!!

Will MSM ever pick that up?

Mon, 12/05/2011 - 19:15 | 1948757 Rainman
Rainman's picture

Most eCONomists today see whatever their paycheck tells them to see. Same goes for accountants, ratings agencies, etc.

Mon, 12/05/2011 - 19:16 | 1948759 tony bonn
tony bonn's picture

the purpose of main stream economics is not to understand economies but to rationalize governmental policies related mostly to totalitarian aggregations of power....

economics does not seek anything but to advance agendas...it is hucksterism at best and a hand maiden of naziism at worst...


Mon, 12/05/2011 - 19:16 | 1948762 death_to_fed_tyranny
death_to_fed_tyranny's picture

The only economics I understand now is," HOW CAN I FUCK THE BANKS!"!



Mon, 12/05/2011 - 21:28 | 1949181 i-dog
i-dog's picture


Thank you for summarising American morality in so few words.

Mon, 12/05/2011 - 22:53 | 1949472 death_to_fed_tyranny
death_to_fed_tyranny's picture

"Thank you for summarising American morality in so few words."


FUCK YOU VERY MUCH! Morality is for the sheeple. So go talk to a priest. First get on your knees and open wide sheep!

Mon, 12/05/2011 - 22:06 | 1949318 IQ 101
IQ 101's picture

Buy superglue,tampons and toothpaste.

Mon, 12/05/2011 - 19:16 | 1948763 Caviar Emptor
Caviar Emptor's picture

Two simple home truths that the "science" of economics ignores: 

The world changes

Economics and politics are inextricably linked

Mon, 12/05/2011 - 21:01 | 1949071 AldousHuxley
AldousHuxley's picture

Economics = justification of power to those with money

Politics = justification of money to those in position of power


Economics brainwash you into believing that rich = earned by merit but in reality it is mostly luck (right place, right time, right people, right skills). Rich are status obsessed because they don't want anyone to find out the dirty secrets in how they acquired wealth.


Politics brainwash you into believing that people in power = earned by trust but in reality it is mostly lies (promise everything to everyone without accountability). Politicians are popularity obsessed because they dont' want anyone to find out their alterior motive (aka. major lobbysts)




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