MODERN ECONOMICS, AN EMPIRICAL VULGAR PSEUDO SCIENCE, JOHN GALT - CAPT AJIT VADAKAYIL
So the spider said to the fly, allow me into your parlour, you are in great danger, and only I can save you. The fly opened the door -- Capt Ajit Vadakayil.
This post of for students of Economics.
Next time your professor teaches you something in college which you do NOT agree with or sound like bull to you , speak up. 99.99% of the time the teacher will NOT be able to explain , as he himself is a brainwashed zombie, belonging to the group who is trained to holler "4 legs good 2 legs better"
First of all imagine that you are a group of boy scouts. TERRAIN MUST PREVAIL OVER THE MAP, ALWAYS.
Economics is an emprical pseudo science where the reverse happens, more often than not.
The father of Economics is a Scotsman Adam Smith.
So who is or rather who was Adam Smith.
He was the "one man think tank" to the owner of British East India Company. Rather he was the adviser to Robert Clive, the henchman of Rothschild.. Much later he would advise Rothschild on how to set up his banking cartel and set up a blue print on how to control the world.
Rothschild's agents in India for the Opium trade were the filthy rich Parsis in Mumbai, and Birla, JK and party in Calcutta. Sasoon who belonged to Rothschild bloodline, who operated from Bombay, kept a hawk's eye.
The agents for the black slave trade in USA was JP Morgan.
In 1834, Rothschild prevailed upon Sir John Gladstone to replace African black slaves with Indian Indentured labour. Never in the history of mankind has there been a saga of such greed and injustice-- where more than 1.2 million innocent Indians were duped whole sale , given a life sentence , dumped in far flung corners of the planet and forgotten for ever.
Christian Missionaries were used deep in forests to lure tribals. 530000 Indians went to Guyana alone, while Mauritius had 350000 , Malaya 250000 and Trinidad had 150000 coolies.
Christian Missionaries were used deep in forests to lure tribals. 530000 Indians went to Guyana alone, while Mauritius had 350000 , Malaya 250000 and Trinidad had 150000 coolies.
And today we have Sonia Gandhi and Manmohan Singh have given the same Rothschild , a toe hold -- nay-- a drivers's seat , by allowing FDI in multi-brand retail, FDI in insurance etc.
On the Dec 20, 2004 letter, the FAM’s foreign trade committee chairman Chandrakant T. Shanghvi said that Manmohan Singh had categorically told a delegation of the traders’ body that “we should not permit FDI in retail trade… India does not require the kind of reforms which would, rather than creating employment, destroy employment”.
So all this is Italian Queen Bee’s idea,
right ?-- and Manmohan Paaji is scared
of her ?
So all this is Italian Queen Bee’s idea,
right ?-- and Manmohan Paaji is scared
of her ?
By the way our own PM Manmohan Singh worked for a Rothschild financial concern before he became India's Finance Minister, as a part of re-orientation. He was the Secretary General of the South Commission, an independent economic policy think tank headquartered in Rothschild banking cartel’s home turf Geneva, Switzerland from 1987 to 1990.
Our poor PM Chandrasekhar was reduced to selling our Gold in 1991, and World Bank and IMF would NOT give a loan unless Manmohan Paaji was made Finance Minister. And later Italian Queen Bee Sonia would NOT have anyone else except "unelected" Manmohan Paaji as PM-- going against the Indian Constitution for a democracy.
Rothschilds controls the US Federal reserve, all the Central banks of all the countries of the world --except Libya, Syria, Iran, North Korea and Cuba. Libya has been taken out. The next in the pecking order is Syria--then Iran.
Rothschild also controls the IMF and World Bank. So, how does the IMF and the World Bank work?
They put a country in debt, in such a big debt it can`t pay it, and then they will offer to refinance that debt, and pay you even more interest, and you demand this quid pro quo which you call a “conditionality” or “good Paaji governance”. Their bouncers – nay- watch dogs are S&P, Fitch, Moody’s etc.
This process of manipulation by the corporato-cracy through the use of debt, bribery and, political overthrow is called “Globalization”. Just as the federal reserve keeps the American public in a position of indentured servitude through perpetual debt, inflation and interest, the World Bank and IMF serve this role on a global scale.
The basic scam is simple. Put a country in debt either by its own indiscretion or through corrupting the leader of that country, then , impose conditionalities, or Structural Adjustment Policies…often consisting of currency devaluation, privatization of state-owned enterprises trade liberalization.. Or the opening up of the economy through removing any restrictions on FDI in multibrand retail or Insurance sector or foreign trade. The rating agencies will give low growth bull percentages.
This allows for a number of abusive economic manifestations… such as Jewish Walmart and Monsanto type transnational corporations bringing in their own mass produced products, undercutting the indigenous production and ruining local economies… Today, countless farmers are out of work, for they are unable to compete with the large corporations.
Another variation is the creation of numerous, seemingly unnoticed, unregulated, inhumane sweatshop factories, which take advantage of the imposed economic hardship.
The world is being taken over by a handful of business powers as per the blue print of Adam Smith , who dominate the natural resources we need to live, while controlling the money that we need to obtain these resources.
Adam Smith? Who the fu#k is Adam Smith?
Economic students need NO introduction. He is the father of Economics.
We Indians need to know more about Adam Smith.
The British soldier in India thought that he was fighting for queen and country. Actually simple John Bull shed his blood for a German Jew. Rothschild had their own Hessian merceneray army, highly paid, who spoke no English. Whenever secrecy ,deceit and covert operations were involved , without even the British Parliament and Queen knowing about it , Rothschild used his hessian Regiment . The spoils went into his underground cellar.
Opium traders Rothschild took over India officially vide the Battle of Plassey in 1757 , and stopped all pretense of being traders, by amazing deceit which sprung from the warped brains of Adam Smith
First of all the trigger of the Black hole of Calcutta was cooked up . It was tom tommed by British East India Company that Nawab Siraj Ud Daula locked up 146 Britishers in a small dark ill ventilated room, out of which 123 died. The truth is only 58 people were in the room , out of which 19 died..
Adam Smith used his deception model to end the Mughal Empire in India. There was supposed to be a great heroic Battle of Plassey in 1757, for the British East India Company under Robert Clive to take over India. The excuse was the incident called the Black hole of Calcutta. The Rothschild held media made a mountain out of the molehill. Even today the world media and Hollywood is controlled by Rothschild cartel. The Indian news on Indian TV is Rothschild spun.
The Battle of Plassey itself is a huge lie. It never took place. History was fudged. It is so easy when you control the peer reviewed media and publishing houses. This is why you get the truth on Internet.
Early in 1756, Siraj Ud Daulah had succeeded his grandfather Alivardi Khan as Nawab of Bengal. Siraj Ud Daula was killed before even a single shot was fired by his brother-in-law and army Commander Mir Jaffar, who was bribed by Rothschild employee Robert Clive.
Mir Jaffar was made a stooge Nawab and in return he gave a lot of Siraj Ud Daula's gold and diamonds for Robert Clive to take home personally in great secrecy. Clive wanted to squeeze him more and when unable to milk him further, shoved off Mir Jaffar and put his rival Mir Qasim as the Satrap.
Adam Smith ( born 5 June 1723 – died 17 July 1790) took ten years to write his economics gospel by way of a book “The Wealth of Nations “ , publishing it in 1776. . He never married, and he used to walk like a CHAKKA. He was delusional too, sometimes in a morbid manner.
He is also said to have put bread and butter into a teapot, drunk the concoction, upped his ante and made a hue and cry over the quality of tea . Another time our man Adam Smith without as much as a “by your leave” went out sleep walking in his nightgown in broad daylight and ended up 24 km outside of town, before nearby church bells brought him back to reality.
His house used to look like a garbage dump as he hoarded everything.
Much later in 1799, Rothschild would murder Tipu Sultan , and then make a huge pretense of a great war. By now Adam Smith was dead and gone. But the blue print was his alone.
The door of Tipu’s fort were opened by Mir Sadeeq on 4th May 1799. . All Tipu Sultan loyalists soldiers were sent away to stand in queue for wage distribution. Tipu Sultan was having his food, when he was killed by a single shot from close quarters on his left cheek. He was also stabbed three times on his chest and later dumped outside on the field among the dead at dusk .
Mir Sadiq and his assistant Mir Moinuddin , who were bribed by Rothschild man Lord Wellesely, were both murdered by the British and made it appear as if they were killed by Tipu Sultan loyalists. So the British made ousted King Wodeyar, rotting in Tipu's prison , the new king of Mysore.
Rothschild is like Phantom, The Ghost who walks. When one Phantom dies the son takes over the empire.
Rothschild took away Tipu Sultan's gold worth Trillions, in 3 ships which were waiting for months to carry it away. This is the base banking capital of Nathan Rothschild. This gold was stolen from the Kerala temples by Tipu Sultan ,the fruit of 6 millenniums of spice trade.
I am from Kerala.
In a minor south Kerala Sri Padmanabhaswamy temple 25 billion US dollars worth gold was unearthed in July 2011. The main vaults are yet to be opened due to security issues and a judicial order. Tipu Sultan was left alone by Rothschild till be made a huge pile of gold by plundering the temples of Kerala, using his half Arab half Malayali Muslim spies.
I am from Kerala.
In a minor south Kerala Sri Padmanabhaswamy temple 25 billion US dollars worth gold was unearthed in July 2011. The main vaults are yet to be opened due to security issues and a judicial order. Tipu Sultan was left alone by Rothschild till be made a huge pile of gold by plundering the temples of Kerala, using his half Arab half Malayali Muslim spies.
Much later Winston Churchill , whose mother Jenny Jerome was Rothschild, would use the Adam Smith model to start both World Wars, to carve out the state of Israel. He used used Lusitania ( sister ship of Titanic ) to drag America into the war in WW1 and Pearl Harbour in WW2. Today Rothschilds owns most of Israel
Getting back to the father of Economics-- Adam Smith had OCD or obsessive compulsive disorder. Hoarding is an effort to manage the anxiety raised by obsessive doubts. There will be a disruption to feelings of self-worth, interpersonal relationships, occupation, or health as a result of hoarding items which are worthless.. A hoarder will have an imaginary emotional connection to all such garbage. People with personality disorders , generally, blame others for their problems. They are awful to work with because they don’t accept responsibility for themselves and therefore never change.
When such people write the gospel of economics, " The Weath Of Nations" you know what you will get. Much later Milton Friedman effectively took many of the basic principles set forth by Adam Smith and the classical economists and modernized them. This is the reason why economists fall into the same hole again and again and again.
The heavy part comes now-- let me crack a quintessential "Economist " joke, to cheer you up.
These dorks are so full of themselves .
Experienced economist and not so experienced economist are walking down Oxford street.
They get across shit lying on the asphalt.
Experienced economist: "If you eat it I'll give you $20,000!"
Not so experienced economist runs his optimization program on his I7 procesor laptop and figures out he's better off eating it so he does and collects money.
Continuing along the same road they almost step into yet another pice of turd.
The not so experienced economist: "Now, if YOU eat this shit I'll give YOU $20,000."
After evaluating the proposal , our experienced economist eats shit and pockets the moolah.
They go on.
The not so experienced economist starts thinking aloud : "Listen, we both have the same amount of money we had before, but we both ate shit. I don't see us being better off."
Experienced economist: "Well, that's true, but you overlooked the fact that we've been just involved in $40,000 of fucking trade."
Take a break -- come back and try and understand what I say. I am a perceptive ship Captain. I really don't care for mother hen's opinion as to how good the omelette on my breakfast plate is.
Now let me digress and give you an brief introduction to the great American Depression of 1924. This is one of the holes I talked about before when all economists fell face down .
The international bankers mentored by Rothschild installed a Central Bank in 1913…The Federal Reserve. And as long as this institution exists, perpetual debt is guaranteed.
Unfortunately, economics is often viewed with confusion and boredom. Endless streams of financial jargon coupled with intimidating empirical mathematics quickly baffle and deter people from attempts at understanding it. However, the fact is, the complexity associated with the financial system is a mere mask, designed to conceal one of the most socially paralyzing structures humanity has ever endured.
Every single dollar in your wallet is owed to somebody by somebody; for remember, the only way the money can come into existence is from loans. Therefore, if everyone in the country were able to pay off all debts, including the government, there would not be one dollar in circulation. If there were no debts in Adam Smith modeled US money system, there wouldn`t be any money.
Now, so far we have discussed the reality that money is created out of debt, through loans. These loans are based on a bank’s “Reserves” and Reserves are derived from deposits. Through this fractional reserve system, any one deposit can create 9 times its original value, in turn debasing the existing money supply, raising prices in society. And since all this money is created out of debt and circulated randomly through commerce, people become detached from their original debt and a disequilibrium exists where people are forced to compete for labor, in order to pull enough money out of the money supply to cover their costs of living.
As dysfunctional and backwards as all of this might seem… there is still one thing we have omitted from this equation… and it is this element of the structure which reveals the truly fraudulent nature of the system itself.
-The application of Interest.
When the government borrows money from the Fed or when person borrows money from a bank, it almost always has to be paid back with accrued interest. In other words, almost every single dollar that exists must be eventually returned to a bank, with interest paid as well. But, if all money is borrowed from the central bank and is expanded by the commercial banks through loans, only what would be referred to as the ‘principle’ is being created in the money supply…. So then, where is the money to cover all of the interest that is charged?
Nowhere. It doesn’t exist. The ramifications of this are staggering, for the amount of money owed back to the banks will always exceed the amount of money that is available in circulation. This is why Inflation is a constant in the economy, for new money is always needed to help cover the perpetual deficit built into the system, caused by the the need to pay the interest.
There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt.-John Adams-1735-1826).
OOPS I went of tangent --let me get back to the Great American Depression of 1924.
The nineteen twenties was a period of great prosperity in the United States.
The financial jackals decided that it is the right time to pull the rug from the feet of the gullible.
Schemes were laid down where by paying a small amount , you could buy almost anything , provided you give a monthly recurring payment--or in short put the common man in the vice of debt.
The gullible common Yank had NO dang idea , of the dangers of debt and high interest rates -- and kept shopping merrily.
Advertising became part of the fabric of American culture as ads dominated newspapers and magazines--about huge discounts and hassle free loans.
Keeping up with the Joneses , social snobbery and false studies convinced consumers to buy more.
With massive corporate growth, high employment and a post-war bull-market on Wall Street, first time American investors went on a stock-market buying spree.
Everyone wanted a piece of this cake.
People bought stock on margin or credit for as little as 10% down. They then used the stock as collateral to borrow more money to buy more stock. Then they did it again. The market was a free-for-all. It was prosperity heaven.
Although everything looked rosy, it was a castle made of sand and the great American party ended on October 29th 1929 when the stock market crashed and caught everyone off guard.
Everyone except the Jew Rothschild money bag insiders and their financial jackals --that is.
In April of 1929, Paul Warburg, the father of the Fed, sent out a secret advisory warning his friends that a collapse and nationwide depression was certain, then in August of 1929 the Fed began to tighten money.
Huge financial Wall Street giants were forewarned in secret of the incoming tsunami .
John D. Rockefeller, J.P. Morgan, Bernard Beruch and all the Free Masons ( read as the old Opium running partners of Rothschild family) got out of the stock market just before the crash and put all their assets in cash or gold.
On October 24th, 1929, the big NY bankers called in their 24-hour broker call loans. This meant that both stockbrokers and customers had to dump their stocks on the market to cover their loans, no matter what price they had to sell them for. As a result, the market tumbled and that day was known as "Black Thursday".
Curtis Dall, a broker for Lehman brothers, was on the floor of the NY stock exchange the day of the crash. In his 1970 book, "FDR: my exploited father in law", he explained that the crash was triggered by the planned sudden shortage of call money in the NY money market.
Within a few weeks, $3 billion vanished into thin air. Within a year, $40 billion vanished.
But did it really disappear?
Or was it simply netted by the financial jackals?
And what did the Fed do? Instead of moving to help the economy out, by quickly lowering interest rates to stimulate the economy, the Fed continued to brutally contract the money supply further, deepening the depression.
Between 1929 and 1933, the Fed reduced the money supply by an additional 33%. The Federal reserve engineered the great Depression.
But the money lost by the common Yank during the depression, didn't just vanish. It was lined the nests of the jackals who had gotten out just before the crash and had purchased gold, which is always a safe place to put your money just before a depression.
Following the crash the great depression put 1/3 of the US workforce out of work.
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The banks foreclosed on property and took possession of peoples' homes and farms. When panicked citizens lined-up at banks to withdraw their hard earned savings, the banks gave them only 10c on the dollar.
Homeless and desperate, many Americans set up tent cities and roamed the rails looking for work.
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Congressman Louis McFadden, chairman of the House Banking Committee, claimed the crash was planned by the international bankers who sought to become rulers of us all. In his famous 1932 Congressional address he said "Mr. Chairman, we have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve banks. The Federal Reserve Board has cheated the people of the United States out of enough money to pay the national debt 3 times over. This evil institution has impoverished and ruined the people of the United States through the defects of the law in which it operates and through the corrupt practices of the moneyed vultures who control it.
The common Yank thinks the Federal Reserve Banks are government institutions. They are not government institutions; they are private credit monopolies which prey upon the people of the United States for the benefit of themselves.
Following a series of death threats, McFadden was finally poisoned and done in by the jackals.
Murder-- yes-- you are dealing with ex-drug runners and slave traders, right?
Economics has done a poor job of understanding the economy, as demonstrated by the failure of metrics, statistical collection of data , academic monitoring . Not a single Economical Science expert out of millions could predict the 2008 recession, despite indications to the contrary. Economics fails because it can only understand the economy in abstract terms, and so it is seen clearly. Economics appears to primarily study large corporations and small businesses with the catchall term of “firms.”
I can see that you are pretty depressed by now--let me tell you another joke, while you have your coffee.
For what follows after the joke will be pretty depressing and you will get terribly angry at the WAYS OF THE PIED PIPER.
For what follows after the joke will be pretty depressing and you will get terribly angry at the WAYS OF THE PIED PIPER.
An American banker needs to go for a crap , and so he stops at the best motel in town in Oklahoma .
He tells the motel owner at the reception that he needs to stay overnight, but he has to check out the best room first, and only if it suits his standards, only then , he will stay overnight.
The owner agrees, takes 100 dollars from him as a refundable deposit, and the traveller goes up to check out his room.
Meanwhile the motel owner races to the town’s resident whore and returns the 100 dollars he owes her. The whore rushes to the tailor and return 100 dollars she owes him. The tailor rushes to the butcher, the butcher rushes to the tavern owner etc etc—this 100 dollar changes hands several times , before the 100 dollar bill comes back to the motel owner via the local blacksmith who had used the motel several times.
The traveller meanwhile declares that the motel room is below his standards, ( but he used the toilet for a nice crap quietly ) collects his 100 dollars back from the motel owner , gets into his car and drives away. Now—
Every body has benefitted—the traveller had his free crap at leisure, the entire town have repayed their debts in a MERRY GO ROUND WAY , and is looking forwards to a better future with renewed confidence.
This is how the American system works.
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Since 99% of my readers are NOT economists , I must give them a brief run down of what this pseudo science is all about.
Adam Smith (1776) defined what was then called political economy as "an inquiry into the nature and causes of the wealth of nations".
Economics is a study of man in the ordinary business of life. It enquires how he gets his income and how he uses it. It is a science which studies human behaviour as a relationship between ends and ze scarce means .
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. Positive economics (describing "what is"), normative economics (advocating "what ought to be") , Mainstream economics (more "orthodox" and dealing with the "rationality-individualism-equilibrium nexus") and Heterodox economics (more "radical" and dealing with the "institutions-history-social structure nexus.
Economists use gross domestic product (GDP) to keep track of how an economy is doing, which is a flawed way. GDP measures the value of all final goods and services produced in an economy in a given period of time, usually a quarter or a year. So a recession occurs when GDP is decreasing. A boom occurs when GDP is increasing.
The assessment of economic growth based on Gross Domestic Product is a fallacy, because GDP is merely a measure of the amount of money in an economy. The one thing it does not measure, which is central to economic progress (note progress, not growth), is the level of entrepreneurial activity in a country like India. Don’t believe me , just take a flight to Coimbatore or Ludhiana . This has important implications for the efficacy of government interventions and solutions to the current economic crisis.
On a ship I judge an officer by his future potential. NOT by what he did in the past. At sea we look ahead and we do NOT look too much into the rear.
GDP is basically the sum total of recorded business activity at the consumption level plus government spending expressed in money terms. If the government spends more, GDP rises; give more money to consumers, GDP rises; give more bank credit to consumers or business, GDP rises. Cut government spending, GDP falls. This is not contentious and has nothing to do with economic progress. Importantly, it excludes future entrepreneurial activity, except to the extent that an entrepreneur has actually spent some money putting his future plans into action. The obsession with GDP means that entrepreneurial activity, which is Adam Smith’s unseen hand that guides our future, is invisible to economic planners.
Misleading statistics such as GDP are leading all governments into bad policy decisions, and their choice has narrowed down to either ever-greater reflationary attempts to pump up GDP, or alternatively facing a collapse in the GDP number as bank credit contracts.. The twin errors of misunderstanding GDP are the failure to see that monetary inflation is concealing a deepening economic depression, and it encourages policies that destroy entrepreneurial activity, or economic progress itself. This is a deadly combination, the equivalent of being in a hole and continuing to dig.
We cannot expect politicians to stop digging deeper and faster when their economic advisers are calling for more shovels. All politicians are fully committed to the fallacies that result from confusing GDP with economic progress. They pursue economic policies that are the equivalent of eating their own children.
Microeconomics is generally the study of individuals and business decisions, while macroeconomics looks at higher up country and government decisions.
Microeconomics focuses on supply and demand and other forces that determine the price levels seen in the economy. It examines the behavior of basic elements in the economy, including individual agents (such as households and firms or as buyers and sellers) and markets, and their interactions.
Macroeconomics does not adhere to a valid scientific method and supporting evidence cannot be sufficiently provided as there are so many factors which are totally ignored. Most theories lack any plausibility This is the field of economics that studies the behavior of the economy as a whole , entire industries and economies. This looks at economy-wide phenomena, such as Gross National Product (GDP) and how it is affected by changes in unemployment, national income, rate of growth, and price levels.
Macroeconomics would look at how an increase/decrease in net exports would affect a nation's capital account or how GDP would be affected by unemployment rate. Macroeconomics analyzes the entire economy and issues affecting it, including unemployment, inflation, economic growth, and monetary and fiscal policy. It examines the economy as a whole to explain broad aggregates and their interactions "top down", that is, using a simplified form of general-equilibrium theory.
Such aggregates include national income and output, the unemployment rate, and price inflation and subaggregates like total consumption and investment spending and their components. It also studies effects of monetary policy and fiscal policy. Macroeconomic analysis also considers factors affecting the long-term level and growth of national income. Such factors include capital accumulation, technological change and labor force growth.
The microeconomics upon which modern macro has now been founded is indeed bull but if we do the micro right, then we can come up with non-bull macro. When the computer takes in Micro crap, the output Macro crap will still be crap.. Maybe we can come up with slightly better macro than what we’ve got now, but the underlying micro is never gonna to be right. Economics is haunted by more fallacies than any other study known to man. Probably Economics must be taught about culture and human behavior, there can be no generalisation here.
The bottom line is that microeconomics takes a bottoms-up approach to analyzing the economy while macroeconomics takes a top-down approach. We must shove in food through the right orifice and excrete it from the right orifice.
Modern economics has degenerated into a vulgar pseudo-science. Economists could no more explain periodic trade depressions than to predict them.
Economics is a pseudo-science and economists are its alchemists. The rating agencies are just the mob muscle for the financial companies. In case a Rothschild bank needs to squeeze the ba##s of a "client" just get the “pet dog” rating agency to threaten to downgrade a little bit. We live in the age of the economic engineer, where everything means nothing and nothing means everything. Pick a number, any number, and do what you like to it.
Wrong-headed economics was the cause of the financial crisis. It has brought us a mountain of debt. It has encouraged us to waste the world’s resources without much thought for the consequences. It is behind the rise in individualism and the weakening of many democratic principles. It has warped our ideas of charity, social responsibility and progress.
We need to ditch many modern economic ideas. Notions about the free market, competition, regulation and trade need to be reconsidered. We need a different measure of progress. We need to put ourselves, our societies, back at the core of what we want to achieve. Modern economics has fallen short. It has widened the gap between rich and poor.
It has not allocated the world's resources fairly. It has brought the West to the brink of financial ruin. It has placed short-term gain before long-term progress. And it has made us focus on the individual, not the society. The end result is a worldwide financial crisis of epic proportions and a planet being scraped clean of the resources needed by future generations, and things are only getting worse.
The authorities could no longer calculate the risks and started relying on the risk management methods of the greedy banks themselves-- or to be more precise highly paid bakers covering their own asses.
A pseudoscience is presented as scientific, , it lacks supporting evidence and cannot be reliably tested. Due to the sheer scale and complexity of national, regional and global economies, no macroeconomic theories can be reliably tested. The economy is so complex that macroeconomists massively simplify it in order to try and make some data fit their theories.
Economic models are almost totally useless, as there are trillions of factors which affect the economy constantly. This is like calculating the Shear forces and bending moments of a complex ship meant to ply stormy oceans , using a rectangular barge in still harbor waters.
Economic models are almost totally useless, as there are trillions of factors which affect the economy constantly. This is like calculating the Shear forces and bending moments of a complex ship meant to ply stormy oceans , using a rectangular barge in still harbor waters.
Economics contain quite complicated Calculus and Math equations that just happens to have little or nothing to do with what it's supposed to prove. To suggest economies were not generally efficient would be heresy in many classes. You see Amatya Sen’s wife Emma is now glorifying Adam Smith. After all he was a servant of her family.
Indian Nobel prize winner , Amartya Sen's third wife is Emma Rothschild, who is the direct blood sister of Amschel Mayor James Rothschild.
Bengalis who were NOT playing ball and resisting Opium cultivation in their fertile fields were forbidden to plant rice. This was on Adam Smith’s advise to Warren hastings.
In 1769, there was a great famine deliberately introduced and sustained killing more than 10.2 million ( 102 lakh ) Bengalis.
In 1769, there was a great famine deliberately introduced and sustained killing more than 10.2 million ( 102 lakh ) Bengalis.
“Famine has never risen from any other cause but the violence of government attempting by improper means, to remedy the inconvenience of dearth.” – Adam Smith
Adam Smith talks above, about the Bengal famine, he initiated which killed 10.2 million Bengalis ( 102 lakh ) . Warren Hastings was crucified.
Adam Smith had a painful death after this event-as divine retribution
Adam Smith had a painful death after this event-as divine retribution
What an king sized asshole!
Much later in 1943, Rothschild stooge Winston Churchill would deliberately starve 5.4 million Bengalis as vicious retribution to the decision of Subhash Chandra Bose to form INA and jump boats in mid-river from the British side to the Jap side.
In 1943 Winston Churchill ( whose mother Jennie is Rothschild ) deliberately starved and murdered 5.2 million Bengalis , as vicious retribution to Bengali Netaji Subhash Chandra Bose forming INA , who jumped boats in mid-river from the Brit boat to the Jap boat. Now Indian would fight Indian.
A Nobel prize was arranged for Amartya Sen by his Rothschild wife Emma. He now had to white wash Churchill’s genocide using Economic jargon and bull.
This is how he did..
QUOTE-- But Smith's defense of private trade only took the form of disputing the belief that stopping trade in food would reduce the burden of hunger. That does not deny in any way the need for state action to supplement the operations of the market by creating jobs and incomes (e.g., through work programs). If unemployment were to increase sharply thanks to bad economic circumstances or bad public policy, the market would not, on its own, recreate the incomes of those who have lost their jobs. The new unemployed, Smith wrote, "would either starve, or be driven to seek a subsistence either by begging, or by the perpetration perhaps of the greatest enormities," and "want, famine, and mortality would immediately prevail...." UNQUOTE-- BLAH BLAH BLAH—
By all this jargon,he meant to say in plain language—
1) There was adequate food in Bengal at the time of the great famine in 1943.
2) There was NO need for Churchill to send rice to India .
3) Diverting grain ships from Australia passing India enroute to Suez Canal every few days, was NOT necessary.
4) Bengalis did panic buying and greedy hoarding in a disgraceful manner.
5) The local administration consisting of mainly Bengalis were corrupt and inefficient in food distribution.
6) How incompetence and corruption can cause famine in a land of plenty.
7) Root cause of famine was inflation and speculative hoarding by Bengalis. It was NOT hoarded by British for the army.
8) Food was stocked 13% more in Bengal than in 1943 than in 1941. Hence it was OK for Churchill to export food from India.
9) Famine cannot exist in proper democracy. ( India under princely states never had famine )
10) 1943 famine was a local Bengali man made thing. The incompetence was native NOT of the British.
11) Bengali producers exported food.
12) Wages of labourers was NOT in par with food prices. Enough food was there , believe me, I saw it in the local bania godowns .
Amarya Sen baffle you with human rights, poverty, inequality , welfare economics , social choice theory , democracy to prevent famine, food distribution systems , FAD, entitlement theory, third degree shortage in a under nourished society, misdirected policies, negative freedom, positive freedom ( sic!) , entitlement shifts -- BLAH BLAH.
Now—
Let us imagine a boy king of 12 is in charge of a kingdom threatened by famine -- as it has happened so many times in our history.
He knows that eeven Napoleon cannot eat thrice the amount of rice (or staple food like potato) he normally eats -- we are NOT talking about caviar here.
He will know that all available food has to be immediately secured or siezed , by strict monitoring. He will make hoarding a death penalty. For this he does NOT have to search the whole country, where 95% people are hand to mouth --"there goes one more day" pattern.
He will prohibit any family from having more than a week of food stock in their houses. He will introduce a fair price rationing system for people below the poverty line. When it comes to the crunch he will give a royal order that only the king's depots can sell rice.
He will make sure epidemics are controlled , by advocating alternate foods , instead of rice -- as usually 60% of famine deaths are by malnutrition related diseases. He will eliminate waste. He will d his level best to import food. He will leave no stone unturned to run survival kitchens.
He is not gonna be constrained by bullshit modern economist theories -- where just mere earthy commonsense is required.
He needs no Adam fu#kin’ Smith theory, to save his people.
As soon as Amartya Sen won the Nobel prize in 1998 for Economic sciences 10.4 lakh Bengalis delirious with joy had taken out a rally on the streets of Calcutta, dancing for hours.
His Rothschild wife Emma rewarded him for white washing the war crime of her own family Rothschild and Winston Churchill . Amartya Sen's third wife is Emma Rothschild, is the direct blood sister of Amschel Mayor James Rothschild.
His Rothschild wife Emma rewarded him for white washing the war crime of her own family Rothschild and Winston Churchill . Amartya Sen's third wife is Emma Rothschild, is the direct blood sister of Amschel Mayor James Rothschild.
Bengalis were prohibited to plant food and all their boats . Even bullock carts and elephants were confiscated, as a scorched earth policy( sic!) against Jap invaders.Starving skeletoned people in a terribly shocking condition started pouring into Calcutta, by the millions . They would forage , fight over scraps , and eat any sort of garbage .
Adam Smith was responsible for the Chinese Opium misery. It was his idea.
His theory was-- EVERY MAN IS ALLOWED TO PURSUE HIS HEDONISTIC DESIRES TO A LAWFUL CONCLUSION, AND THAT OPIUM IS A "LEGITIMATE PRODUCT" . ( If you want to know what is Hedonism , go to Negril Jamaica , and check out drugged orgies on the open beach in broad daylight -- own pleasure first ! screw everybody else !!) ALL OBSTACLES TO BUYING CHEAP AND SELLING DEAR MUST BE REMOVED, WHICH IS THE CORE OF GLOBALISATION...
Emma Rothschild's has also done a good job of white washing hedonist and East India company employee, Adam Smith vide her book ECONOMIC SENTIMENTS.
Sorry Emma--here is one in the eye for you, below -- ( above picture is of Richard Cantillon )
Adam Smith's brilliance cannot be questioned with economists around you,unless you want to be insulted. n. Any errors he made were excused as the inevitable flaws of any great IQ absent minded professor..
'Adam Smith ties' were worn as a badge of honour in the upper echelons of the Reagan Administration. Nobody would wear a Hitler tie, right?
Marxists, hail Adam Smith as the ultimate inspiration of their own Founding Father, German Jew Karl Marx, who was related to Rothschild.. Indeed, if the average person were asked to name two economists in history whom he has heard of, Smith and Marx would probably be the runaway winners of the poll.
Adam Smith originated nothing that was true, and whatever he originated was bull. Adam Smith was a shameless plagiarist, from the works of Richard Cantillon.
Have you seen our own mediocre economist Amartya Sen lisp the word “model” in every third sentence ? He wants to stand out as a brilliant guy of the Adam Smith school, which is so dear to his Rothschild wife ( third one )..
Modern economics is obsessed with modelling. If an economist does NOT say the world model or even hear it, he will go crazy with withdrawal symptoms.
What is a model?
Models describe a situation, and describe how that situation would be changed by a given set of event—demand and supply. A mathematical model as a predictive tool to demonstrate the outcome of events in this complex world run by human emotions — is for the gullible.
Economists are pretenders who use formal mathematical techniques to understand, and hold your breath - accurately predict the result of changes in the economy . The truth is that these stupid models can never accurately predict the future. When you fire a gun you know where the bullet will make a hole. But hey, our modern economists baffle you with bull, that they can accurately model the trajectories of prices, employment and interest rates .
An economist with mediocre brains ( otherwise he would be a rocket scientist ) pretends to be a master of all trades - philosophers, social engineers, historians, sooth sayers, mathematicians, statisticians, political scientists, sociologists and psychologists, among many other things. The math equation is difficult to comprehend , as it is nonsense.
Yet economics — and economic decisions, from the macro to the micro level — is a human subject NOT math. It is subtle and psychological and sporadic. A human subject requires human language, human emotion, human intuition. The grand theoretical-mathematical approach to economics is nonsense...
The pseudo-scientific school of mathematical economics if for the perfect world run by robots without emotions— where even the weather is math controlled and there can be no domino effects-- where there is no subtlety or ambiguity or uncertainty.
Mayer Amschel (Anselm) Rothschild, was born in Juddddenstrasse Frankfurt am Main, Germany in 1744, and is held to be the founder of the famous House of Rothschild. But his money lending father had financial interests in bothe Germany and France.
Richard Cantillon(1680s – May 1734) was an Irish-French banker and economist . He wrote the Essai sur la Nature du Commerce en Général (Essay on the Nature of Trade in General), a book considered by William Stanley Jevons to be the "cradle of political economy" .
During the late 1710s and early 1720s, Cantillon speculated in, and later helped fund, John Law's Mississippi Company, from which he acquired great wealth.
Cantillon was influenced by his experiences as a banker Essai is considered the first complete treatise on economics, with numerous contributions to the science. These contributions include: his cause and effect methodology, monetary theories, his conception of the entrepreneur as a risk-bearer, and the development of spatial economics. Adam Smith copied from Cantillon's Essai .
In 1716, the French government granted him both permission to found the Banque Générale and virtual monopoly over the right to develop French territories in North America, named the Mississippi Company. Essai was not published until 1755 as a result of heavy censorship in France, it did widely circulate in the form of an unpublished manuscript between its completion and its publication .
Adam Smith lifted Cantillon’s sustenance theory of wages—whole sale.
Adam Smith lifted Cantillon’s sustenance theory of wages—whole sale.
Adam Smith not only contributed nothing of value to economic thought; his economics was a grave deterioration from his predecessors.
The mystery of Adam Smith, then, is the immense gap between a trumped up reputation ( ashe rubbed shoulders with Rothschild ) and the sordid reality. The Wealth of Nations was made to blind all men, economists and laymen alike.
The Wealth of Nations exerted such a colossal impact on the world thanks to Rothschild and East India Company, that all knowledge of previous economists was blotted out, hence Smith's reputation as Founding Father.
The Wealth of Nations exerted such a colossal impact on the world thanks to Rothschild and East India Company, that all knowledge of previous economists was blotted out, hence Smith's reputation as Founding Father.
Enough of false god and plagiarist Adam Smith and his reflected brilliance!
Capitalism has to be understood and rejected in its entirety. Capitalists, do not create wealth. Workers do. Workers are not dependent on the capitalist class but could run society in their own interests within common or co-operative ownership and democratic control. Capitalists are dependent on the exploitation of workers for their wealth and attached privileges.
Capitalism benefits capitalists, not workers . Capitalist economics is the employer's set of ideas and rules to keep workers in their place. You will not hear Chancellors of the Exchequer lecturing the CBI to make less profit and give workers higher wages but you will always hear Chancellors telling workers to be more productive and not to take increased pay rises and bonuses.. But one thing they do not have is an understanding of is their own subject matter.
Economists students must ask how the profession had been blind to the fact that its theories were leading people down the wrong path. The oft repeated paradigm that the market corrects itself, is sheer bull. Economists assumption that everyone in an economy can borrow at the same risk-free rate is pure bull.
Without a rethink, we face the end of growth. We face the end of progress. We face more poverty, greater conflict and rising ill-health. Life expectancies will fall, as will standards of living. In developed countries, health care, savings and pension promises will be broken. In the third world hopes for development will not be met. Tensions between peoples will grow.
We have to re-ground it in a new paradigm. A new economics can only be originated by a new outlook on value and wealth. The GDP cannot be considered a measure for the standard of our lives.
Modern Economists ( especially the ones who snort Cocaine ) are strongly influenced by their testosterone levels.
Mainstream economic and financial models, the ones that currently rule the markets and determine value, have shifted their focus over the years from what is best for the society they should try to model to what is mathematically possible to achieve for maximizing benefit of a few. Most economists and financiers are nothing more than “hands on” mathematical labourers and their models are pseudo science.
Mainstream economic and financial models pursue an idea of value that is divorced from any concept of the general wealth and well being of human beings and society.
Prevailing models are based on a totally driven by the lust for individual profit. These models are rooted in the win-lose paradigm . They call it “competition” and a gigantic and ineffective apparatus has been unfairly created to “ensure” fair competition.
The starting point is to define what the role of the government should be and which policies an economic model should mirror. Any government should first and foremost protect the freedom of its citizens under the constitution. For an Indian who suffered 800 years of slavery — it is freedom from any risk of slavery. We do NOT want to be a banana republic where each and every Minister and MP of the ruling party is paid bribes by huge corporations like Walmart , Vedanta or Monsanto.
We the flies must have the ability to protect ourselves from huge spider enemies and freedom from tyranny. People must have the entrepreneurial freedom to start own small "pop and mom" ventures and business. There must be a network of support for the development of any form of free enterprise.
None of the economists are prepared to see the obvious because it is not in their equations and wish lists. Crap in equals crap out, no matter how you dress it up in fancy maths which in any case only a small percentage of people can understand. It's just about bamboozling the masses so they don't query what bull they are being told.
Every equation in neoclassical economics is rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being-- in a complex country like India. Virtually all commonly held beliefs about economics--whether espoused by "baffle them with bullshit" political activists, politicians, journalists or taxpayers-- are just plain wrong.
Economics will always be bullshit because it relies on the premise that human beings behave in a systematic way, when they don’t. We cannot predict consumption/saving/investing behavior in long-lasting ways. "Culture" is a inexplicable, chaotic force that makes economics hopeless.
There's no guarantee that what may hold today will hold tomorrow. Science rests on the assumption that the mechanisms of the Universe are stable. When that assumption fails, economic science fails. Even if the macroeconomy is incredibly chaotic, the economists use brute-force computer power to make short-term forecasts, like how weather forecasters do.
Economics previously was not a very mathematical science, at least compared to the way it is today. Economists used to write articles with very few equations, or even without any equations at all.
People don’t understand complicated math, so economists can automatically win arguments with someone who cant understand math. Nowadays, most papers on economics have complex equations in them. All economists have to be able to talk about their ideas using grandiose mathematical models and statistics, or other economists won’t respect them. This is part of what is called being able to “think like an dazzling economist.”
Economists still like wearing their 3-D glasses after the 3D Titanic movie is over and they drive home to go to bed with great self importance.
Economics starts with assumptions and then tries to do voodoo math with the assumptions. Why are the ignorant and low IQ politicians and commentators who confidently speak economic nonsense treated as sages? And why do so many journalists uncritically repeat their nonsense? If not they may lose their jobs, right? The news media lavish on high-profile politicians and pundits who baffle people with confident bull with absolute certainty --on matters about which their own words show they know nothing.
Too few people in public life understand economics, numbers or algebra. None of them did Math or Calculus in college. Hardly any remember, the crucial concept underlying matters of economics and finance known as accounting identities.
Accounting identities are statements that must be true no matter how you arrange the components. Thus 2+1=3 just as 3-1=2. Likewise, net worth equals assets minus liabilities just as assets equal liabilities plus net worth and profits equal revenue minus costs.
Accounting identities are statements that must be true no matter how you arrange the components. Thus 2+1=3 just as 3-1=2. Likewise, net worth equals assets minus liabilities just as assets equal liabilities plus net worth and profits equal revenue minus costs.
I have NOT yet seen an economist who can solve a simple math below, which even a illiterate chai-wala boy in Calcutta can do.
Three friends go to a bar for drinking beer ( costing 10 dollars a bottle )
As usual they take out one 10 dollar bill each from their wallets and gives the waiter, 3 nos 10 dollar notes or 30 dollars.
The bar owner is in a expansive mood and he tells the waiter -- "happy hour time! -- give them 5 dollars back!!-- i will charge only 25 dollars for 3 beers today ".
The clever waiter knows 5 dollars cannot be split between 3 regular dutchmen. so he pockets 2 dollars and returns 3 one dollar notes .
The three of them put back one dollar each into their respective wallets. Initially each wallet had one 10 dollar bill--now it has only one single dollar bill.
Now comes the perception part:
All three of them spent 9 dollars each-- 27 dollars total.
The waiter got 2 dollars.
WHERE IS ONE DOLLAR GONE-- POOF???
Be honest to yourself and dont read further, till you figure this out.
You tell an accountant without perception to give you a debit/ credit accounts statement--and see the way he sweats.
See literacy has nothing to do with perception. A illiterate chaiwala boy in mumbai can make an ass out of you, when it comes to accounts.
Daft accountants make a mistake when it comes to "receipts" and " balance ".
Here in this case it is - 30+0= 27+3.
Opening cash + receipts = spent cash+ balance cash. It can never ever be 30-3+2=29
See, you cant argue with dorks. 2 dollars is something which happened in the mann mandir of the waiter. How do you know that he stole 2 dollars ? Accounting has to be objective.
This is where the economists confidence goes for a toss.
In economics, Gross Domestic Product equals consumer spending plus government spending plus investment plus the net of exports and imports. Or in its simplest form: Spending = Output = Income. One can predict that , over the long term, if marginal costs exceeds marginal revenues, then a firm will go broke.
Economists are charlatans hired by politicians to push a particular point of view, masquerading as sure science. Politicians know very well how to fix the economy, but their masters, blinded by greed, refuse to let go. Our minds are raped with the scientific nonsense. It is all about greed. That is the only element driving our economic system, which is called capitalism, is greed.
Economic models try to simulate the real universe of commerce, with idiotic assumptions based on SCANTY INFORMATION , which of course will lead to stupid predictions. Natural science models can predict more accurately because they deal with simple inputs. Human behavior can never ever be a simple input.
Modern economics is obsessed with modelling. A mathematical model is a predictive tool created to demonstrate the outcome of events in a over simplified alternate universe. Mathematical economic theories cannot accurately predict the future. This is NOT a calculation like low tide-high tide or sunrise- sunset time.
Physicists can very accurately model the trajectories of rocks in space. But economists cannot accurately model the trajectories of prices, employment and interest rates down on the rocky terrain. So they make the map more important that the terrain.
Physicists can very accurately model the trajectories of rocks in space. But economists cannot accurately model the trajectories of prices, employment and interest rates down on the rocky terrain. So they make the map more important that the terrain.
Economics — and economic decisions, from the macro to the micro level — is a human subject. It is subtle and psychological and sporadic. A human subject requires human language, human emotion, human intuition.
The grand theoretical-mathematical approach to economics is fundamentally flawed. Trying to smudge the human reality of economics and politics into cold mathematical shackles is degenerative.
The pseudo-scientific school of mathematical economics hungers and craves for a perfect world, where each river is the same, where there is no butterfly effect, where human preferences are expressed in equation form, where there is no subtlety or ambiguity or uncertainty.
Economics students waste 3 years, learning to fiddle with budget constraints and production functions, and using constrained maximisation to solve irrelevant problems that are completely detached from reality. They are given completely arbitrary utility functions and aren't told why those functions are appropriate to use. And then, when they have solved these archiac problems, they are told that it "proves" that the free market works, and that the price signal ensures efficiency.
The whole purpose of economics is to justify the status quo, to act as apologists for environmental degradation, income inequality and neoliberal capitalism. If the student tries to innovate with ethical arguments he is accused of not "thinking like an economist". He is supposed to argue on behalf of the delusional Adam Smith that throwing people out on the streets is the rational policy to pursue.
I honestly don't see why economics continues to be taught . It is a complete pseudoscientific discipline with no redeeming features that has contributed to a huge number of problems in this world. It's no better than withcraft, and it's consequences are much more severe
We need people to start speaking out against this discredited "science" before it damages any more lives.
The Human Race will only make progress once economics is no longer subsidised and taught at our prestigious universities, and is only mentioned in history classes as a prime example of a discredited science from the past.
How can you justify an academic discipline that's sole purpose is to act as apologists for an economic system that has failed a significant percentage of the world population and it's inherent weaknesses responsible for the worst financial crisis since the Wall Street Crash? I'm NOT saying that we should only be taught Marxist theory, but there is no balance in economics whatsoever. The subject is completely divorced from reality, and when empirical evidence goes against theories (like, as if if reality doesn't correspond to right wing theory, it's reality that's to blame. No proper science would operate like this.
Whenever scholars from other disciplines try to debunk economic theories, they're called left wing idiots. When other heterodox economists criticise economics, they're called cranks, without any attempt to rationally debate their arguments. Economists love presenting their work as scientific however, many of their theories can never ever be reliable tested, because people's "utility" functions simply cannot be measured in any sense
80% of economics these days is empirical. Economics is a complete pseudoscientific discipline with no redeeming features that has contributed to a huge number of problems in this world.
In science, theories and models are tested against reality. If they are contradicted by confirmed events, theories are either modified or rejected. In the long run there is a winnowing out process which selects one or a few theories as being most probably correct. In a pseudoscience, no such winnowing out occurs: when confronted with strong evidence against a pseudoscientific theory, either the evidence is dismissed whole sale or reinterpreted to conform to theory.
Or the theory is reinterpreted to make it consistent with the data. Abandonment of the theory is never even an option. There has been no winnowing out of economic theories. When an "impossible" event occurs the theory is simply tweaked and reinterpreted to conform to the new situation. So we have unstable sky scrapers, too dangerous to live in.
Or the theory is reinterpreted to make it consistent with the data. Abandonment of the theory is never even an option. There has been no winnowing out of economic theories. When an "impossible" event occurs the theory is simply tweaked and reinterpreted to conform to the new situation. So we have unstable sky scrapers, too dangerous to live in.
Nobody in thier senses will ever say that that economics is even a science in the strictest definition of the term. Social Sciences in general are not science in it’s strictest sense. To hold economics or political science to the strictest scientific method is impossible..
Production of wealth should NEVER be tied to its distribution. The former is in the field of "applied economics" while the latter belongs to "social economics" and is largely a matter of power and politics.
Even the best economists cannot make exact predictions about future events. What is the current state of economics today? Contemporary economics appears to rest in a state of polarization between two opposing philosophies: capitalism and neo-Marxism. Both are flawed.
Economics fails to take into account human nature as the greatest driver of behavior and when it does, it does NOT understand culture and priorities .Human nature is studied in the subfield of behavioral economics, which essentially tries to explain why people are “irrational.”
Quantitative metrics, such as per-capita income and median income, are flawed, primarily because they can easily be skewed by the higher wealth of small communities where wealth is highly centralized. Qualitative metrics and sociological examination are needed.
PUT ON YOUR HEAD PHONES AND LISTEN TO THE VIDEO BELOW--
PUT ON YOUR HEAD PHONES AND LISTEN TO THE VIDEO BELOW--
How did the crash of 2009 happen?
QUOTE : Before the recession , the 2002–2008 period encouraged high-risk lending and borrowing practices; international trade imbalances; real-estate bubbles that have since burst; fiscal policy choices related to government revenues and expenses; and approaches used by nations to bail out troubled banking industries and private bondholders, assuming private debt burdens or socializing losses.
The U.S. Financial Crisis Inquiry Commission reported its findings in January 2011. It concluded that "the crisis was avoidable and was caused by: Widespread failures in financial regulation, including the Federal Reserve’s failure to stem the tide of toxic mortgages; Dramatic breakdowns in corporate governance including too many financial firms acting recklessly and taking on too much risk; An explosive mix of excessive borrowing and risk by households and Wall Street that put the financial system on a collision course with crisis; Key policy makers ill prepared for the crisis, lacking a full understanding of the financial system they oversaw; and systemic breaches in accountability and ethics at all levels.“
Author Upton Sinclair (1878–1968) famously stated: "It is difficult to get a man to understand something when his job depends on not understanding it."
In the years leading up to the crisis, the top four U.S. depository banks moved an estimated $5.2 trillion in assets and liabilities off-balance sheet into these SIV's and conduits. This enabled them to essentially bypass existing regulations regarding minimum capital ratios, thereby increasing leverage and profits during the boom but increasing losses during the crisis. As the shadow banking system expanded to rival or even surpass conventional banking in importance, politicians and government officials should have realized that they were re-creating the kind of financial vulnerability that made the Great Depression possible—and they should have responded by extending regulations and the financial safety net to cover these new institutions.
As long as the damage caused to people, cultures, and ecosystems is not denominated in money, it is in the realm of other, off the balance sheet. The same goes for business accounting, in which costs can only be externalized when the payer is, again, off the balance sheet—an other. To the extent that we identify with our communities, we cannot export costs to them.
By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it.
The shadow banking system is the collection of financial entities, infrastructure and practices which support financial transactions that occur beyond the reach of existing state sanctioned monitoring and regulation. It includes entities such as hedge funds, money market funds and structured investment vehicles (SIV). Investment banks may conduct much of their business in the shadow banking system (SBS), but most are not SBS institutions themselves.
The core activities of investment banks are subject to regulation and monitoring by central banks and other government institutions - but it has been common practice for investment banks to conduct many of their transactions in ways that don't show up on their conventional balance sheet accounting and so are not visible to regulators or unsophisticated investors.For example, prior to the financial crisis, investment banks financed mortgages through off-balance sheet securitizations and hedged risk through off-balance sheet credit default swaps.
The volume of transactions in the shadow banking system grew dramatically after the year 2000. By late 2007 the size of the SBS in the U.S. exceeded $10 trillion and by late 2011 had increased to $24 trillion according to the Financial Stability Board. Globally, a study of the 11 largest national shadow banking systems found that they totalled to $50 trillion in 2007, fell to $47 trillion in 2008 but by late 2011 had climbed to $51 trillion, just over its estimated size before the crisis. Overall, the world wide SBS totalled to about $60 trillion as of late 2011.Shadow institutions do not accept deposits like a depository bank and therefore are not subject to the same regulations. Complex legal entities comprising the system include hedge funds, structured investment vehicles (SIV), special purpose entity conduits (SPE), money market funds, repurchase agreement (repo) markets and other non-bank financial institutions.
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Shadow banking institutions are typically intermediaries between investors and borrowers. For example, an institutional investor like a pension fund may be willing to lend money, while a corporation may be searching for funds to borrow. The shadow banking institution will channel funds from the investor(s) to the corporation, profiting either from fees or from the difference in interest rates between what it pays the investor(s) and what it receives from the borrower.The shadow banking system makes up 25 to 30 percent of the total financial system, according to the Financial Stability Board (FSB), a regulatory task force for the world's group of top 20 economies .
This largely unregulated sector was worth about $60 trillion in 2010,.Like traditional banks, shadow banks provide credit and liquidity but, unlike their traditional counterparts, they do not have access to central bank funding or safety nets like deposit insurance. Unlike traditional banks, shadow banks do not take deposits. Instead, they rely on short-term funding provided either by asset-backed commercial paper or by the repo market, in which borrowers offer collateral as security against a cash loan and then sell the security to a lender and agree to repurchase it at an agreed time in the future for an agreed price. They are often based in tax havens, invest in long-term loans like mortgages, providing credit across the financial system by matching investors and borrowers individually or by becoming part of a chain involving numerous entities, some of which may be mainstream banks.
As shadow banks do not take deposits, they are subject to less regulation than traditional banks. They can therefore increase the rewards they get from investments by leveraging up much more than their mainstream counterparts and this can lead to risks mounting in the financial system. Unregulated shadow institutions can be used to circumvent the strictly regulated mainstream banking system and therefore avoid rules designed to prevent financial crises.
In January 2012, the global Financial Stability Board announced its intention to further regulate the shadow banking system, in the interests of the real economy.
The full extent of the shadow banking system was not widely recognised until work was published in 2010 by Manmohan Singh and James Aitken of the International Monetary Fund, showing that when the role of rehypothecation was considered, in the U.S. the SBS had grown to over $10 trillion, about twice as much as previous estimates.
This been implicated as significantly contributing to the global financial crisis of 2007–2012.
The rapid increase of the dependency of bank and non-bank financial institutions on the use of these off-balance sheet entities to fund investment strategies had made them critical to the credit markets underpinning the financial system as a whole, despite their existence in the shadows, outside of the regulatory controls governing commercial banking activity. Furthermore, these entities were vulnerable because they borrowed short-term in liquid markets to purchase long-term, illiquid and risky assets. This meant that disruptions in credit markets would make them subject to rapid deleveraging, selling their long-term assets at depressed prices.
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Economist Paul Krugman described the run on the shadow banking system as the "core of what happened" to cause the crisis. "As the shadow banking system expanded to rival or even surpass conventional banking in importance, politicians and government officials should have realized that they were re-creating the kind of financial vulnerability that made the Great Depression possible—and they should have responded by extending regulations and the financial safety net to cover these new institutions. Influential figures should have proclaimed a simple rule: anything that does what a bank does, anything that has to be rescued in crises the way banks are, should be regulated like a bank." He referred to this lack of controls as "malign neglect." UNQUOTE
Competitive individualism actually destroys societies dependent on team dynamics , as it undermines the moral consensus holding human communities together. Human welfare is best measured by the market-based national product accounts (per capita products)
During the Age of Enlightenment society flourished, propelled by the wonder of new discoveries, radical ideas for economic and social development, and a sense that we all had a responsibility to improve our world. It's time to get back to those lofty ideals, step back , examine and re-evaluate our values, and work out what humankind really needs.
All perceptive students of economics on this planet -- please start demanding answers from your professors — I am sure you know that you are being taught empirical pseudo-science in college.
If it is blasphemy so be it! The emperor is naked indeed , and you must expose him !!
We must make a new win-win model ensuring the down trodden are not left behind, with freedom from “risk of going back to slavery” as number one condition.
We must NOT confuse GDP with economic progress. We are destroying entrepreneurial activity and burning our own babies.
IN ORDER TO SAVE THE WORLD FOR HUMAN HABITATION, WE MUST STOP TEACHING FLAWED ECONOMICS!
Economic theory abstracts from virtually anything having to do with time. All of it is a 3D graph—time must be taken into account. We are NOT intelligent or perceptive to talk in 4D.
But we all know the planet survived very well before Adam Smith and Rothschild's mistress Ayn Rand cooked up super-man John Galt ,right?
But we all know the planet survived very well before Adam Smith and Rothschild's mistress Ayn Rand cooked up super-man John Galt ,right?
Economists must be lateral thinkers!
ATLAS SHRUGGED was written in 1957, by a Jewish Russian American by the name of Ayn Rand ( Alisa Rosenbaum , born 1905 , from St Petersberg ) . She has put herself in the book as Dagney Taggart--the heroine.
The hero was of course John Galt, who is clearly Phillipe Rothschild. The book glorifies capitalism and the virtues of selfishness-- typical of Zionist bankers and Free Masons. John Galt does not make an appearance in the novel till it is 2/3 over.
But he gets a great introduction -- rather his reputation precedes him, by the constant corny brain thumpin' refrain " Who is John Galt? "
-- the readers are now in the common quest to discover this answer rivalling the holy grail .
As the bullshit plot unfolds John Galt is turn out to be a creative inventor, the great all American Jewish capitalist who has all the grey matter and moolah. He and his Jewish industrial leader ilk are supposed to hold the burden of this planet- like how Atlas held up the whole world on his shoulders , as per Greek mythology.
So in 2008-- as per the John Galt blue print -- Jewish Lehman brothers went bankrupt first -- causing the DELIBERATE DOMINO EFFECT.
The whole worlds wealth SELF DESTRUCTED ON COMPUTER and suddenly vanished -- this is the essence of financial engineering --
POOOOOFFF!
Trillions of Dollars were then spent to bail out and prevent the world system from collapsing FURTHER and total fiasco.
This bail out money would be the common poor mans' future tax burden.
US Federal Reserve which is a private Zionist Jewish organisation ( it is NOT owned by US government ) injected billions of dollars into the American banking system.
Other banks had to follow suit and Wall Street was brought on its knees, Global equities including in India nose dived.
IMF lead by Rothschild man Kahn and IBRD would make trillions of dollars available to struggling countries, and put them in the vice of debt traps . The Fed gave 2 Trillion dollars in loans to Citigroup , Morgan Stanley etc.
The crash of 2008 had been planned for several years--as a inner Bilderberg club decision.
It did NOT happen overnight.
A piece of advise for our new patriotic " Economic Warriors" who can make a difference, for Bharat Mata.
Dwell over it. Make a CHANGE for the better. India is NOT like other downwardly mobile countries, whose looted money is getting over .
We have a potential--every which way..
As Einstein said, we cant solve our complex problems with the same colonial mindset and thinking that created them.
This has been overdone by corrupt politicians who wanted kickback accounts in foreign Swiss banks.
Before they lose power these politicians will loop it back into India using benami names ( like in IPL cricket league ) via FDI to launder the ill gotten money and convert it into tangible assets.
The need to drive the economy growth must be balanced with the need to care for our down trodden people and the need to protect our environment .
We need to fabricate new economic tools. We need to give incentives for “ reuse and recycle”.
India’s prosperity depends upon our collective wisdom, our health, our creativity and on a healthy environment.
GDP just measures what we make and consume, not who we are (our human and social capital) or where we live (our natural capital). It totally disregards the ever widening chasm between haves and have nots. Let some have nots be invited on our foreign funded TV , instead of Lord Meghnath Desai prototypes.
Adam Smith driven economists love a catastrophe in our country. They generate economic activity, regardless of the human cost, right?.
GDP is useful for its purpose – for predicting tax revenues , for example – but it cannot be seen as the bench mark , of our progress as a nation and our entrepreneur drive .
The GNP does not allow for the health of our children, the quality of their education, or our patriotism to our beloved country, which broke the chains of 800 years of slavery, just 65 years ago. We need a driver in the drivers seat with 100% Indian DNA—and not an Italian waitress.
GNP measures everything , except that which makes life worthwhile in India. And we have simple tastes and we are a happy family .
Productivity is a word that suffers terrible abuse at the hands of Adam Smith driven business lobbyists .
Above picture shows LOBBYING with ruling party ministers---- as per their own disclosure statement in USA, Walmart has have paid 53 crores in the last 2 years, in India ( so little? )
There must be some dang evidence that allowing workers to be treated more harshly and unfairly does anything to improve society.
Productivity gains are best found through investing in the future of Indian economy – through constant prioritization of needs, education, R&D, health and better management of our bountiful resource .
Healthier people are more productive workers, with fewer sick days. A better educated population is a more productive population. Clearly we need to get our priorities straight.
Why do we give billions to multi-national corporations like Vedanta and not more assistance to cottage industaries and pop and mon small businesses?
The West has gone back to clean rivers , blue skies and green fields. We must protect our environment also helps people, creates jobs and helps the economy.
We must not allow desh drohi politicians and money bags, to pander to evil companies like Monsanto, who will bury our food security. No food for 1.3 billion people means civil war, and this is what the jealous West wants.
Monsanto came to India for selling genetically engineered seeds by bribing Indian politicians. Sonia Gandhi favours Monsanto. Once you get into the pay roll of Monsanto there is NO way out. It is just like doing a favour for any drug cartel . Once IN there is no way OUT.
Thanks to Monsanto the bee population on this planet has declined. This is dangerous as bees are essential for pollination. Nil bees and the planet will die in less than a decade. When bees are affected by pesticides they inbuilt radars get shut down, and they get lost.
This evil monster has taken away the age old farmers right to use their own grown seeds . We have to buy seeds from Monsanto , as Monsanto GM seeds are terminator seeds or sterile seeds. And like how Bill Gates changes the Windows version , Monsanto also started their Version 1 , Version 2.2 seeds--or-- second / third generation seeds. So the farmers had to borrow money from money lenders, and get themselves into a debt trap, with declining yield crops.
Contrary to Monsanto claims genetically engineered seeds does NOT increase the yield. The Monsanto method has given birth to Super Weeds and Super Pests, as they become resilient. Ground water is now polluted as more deadly pesticides have to be used in greater doses.
Honestly Indians are being used as guinea pigs , all under the blessings of our politicians and foreign funded double agent NGOs--who have Swiss bank accounts. By the way Swiss banks are owned by Rothschild.
Today if you visit hospitals in India the kidney and liver sections are full . Our old people get Alzhiemers which was never heard of in India thanks to GM seeds. Whom do we need to thank?
US President Obama has filled up all important posts with Monsanto stooges-- Roger Beachy, former director of the Monsanto Danforth Center, Michael Taylor, former vice-president for public policy for Monsanto, Tom Vilsack., Hillary Clinton, Islam Siddiqui, , Ramona Romero, Rajiv Shah, Elena Kagan . His biggest financiers Bill Gates and George Soros are major Monsanto share holders
Russia has just stopped all consumption of Monsanto corn , as a French lab published that lab rats which ate it developed tumors and died prematurely.
US President Obama has filled up all important posts with Monsanto stooges-- Roger Beachy, former director of the Monsanto Danforth Center, Michael Taylor, former vice-president for public policy for Monsanto, Tom Vilsack., Hillary Clinton, Islam Siddiqui, , Ramona Romero, Rajiv Shah, Elena Kagan . His biggest financiers Bill Gates and George Soros are major Monsanto share holders
Russia has just stopped all consumption of Monsanto corn , as a French lab published that lab rats which ate it developed tumors and died prematurely.
We can make this vision a reality, but only if we recognise that the economy needs to serve the needs of people and nature, not the other way around.
Let me end with a true anecdote to cheer you up!
Farmers belonging to the Christian community in Kerala, are educated and highly aware . All of them now oppose FDI in retail, courtesy Cacafonika nay Sagarika Ghose’s CNN-IBN ( wife of Rajdeep Sardesai ) pea-brained tweets.
“Holy mother of Jesus Christ! She greeted us on Good Friday and asked for Easter eggs, son! So when such a person talks about FDI as though it’s the panacea for all of world’s problems, we know this is Jesus’ way of guiding us in the right path—HALLELUJAH ,” reasoned Thomas Verghese, a vegetable vendor from Alleppey, and solemnly crossed himself.
Sagarika Ghose tried to finger Mamata Bannerjee --who is India's No1 politician, when it comes to honesty and being PRO- downtrodden--and she got flak on her face.
Sagarika Ghose tried to finger Mamata Bannerjee --who is India's No1 politician, when it comes to honesty and being PRO- downtrodden--and she got flak on her face.
CNN-IBN ( and NDTV ) is pro-Sonia and pro-Walmart!!
TEEEE HEEEEEE !!!!!
Japan's false GDP was inflated by banks on an over lending spree. GDP by itself is never a good indicator of economic health , as it does NOT take into account small entrepreneurship, as in India .
The Purchasing Managers’ Index (PMI) trend indicated by production levels, new orders, supplier deliveries, inventories and employment level-- with each indicator having a separate "India unique weightage facor " is a good indicator.
The tonnes of diesel consumed , number of ships and of what type ( export/ import/ cargo type ) in port , amount of loans applied for by businesses , electricity consumption , railway cargo volume - are all indicators.
PMI number should NOT be based on large corporations like Reliance, Tata etc, but it must take into account small and medium sized enterprises (SME), which is more indicative—for a complex country like India. Poor SME health ( be aware of trend) of less than 35 out of 100, will indicate that the overall state of the Indian economy is in a bad state..
Let be explain INDIA UNIQUE WEIGHTAGE FACTOR--
When my ship was discharging Clay Slurry at Vancouver Nanaimo island, a Norwegian Supercargo came on board. We had to prepare to load MEG FG for UCC with chlorides less than 0.29 ppm. My Chief officer remarked. This Super cargo is very resourceful, considering how well he managed things ashore. So I told him " His next assignment is in Chittagong. I will bet my bottom dollar, that he wont go there, and pretend that he is sick" .
And I was right, as proved later.
Get the drift of what is Bangladesh specific and Canada specific?
Economics is the only educational field where students become more evil as they progress. Capitalist economists in capitalist countries are paid precisely in order to support the rich.
Models based on " flawed assumptions" about such things as unemployment, inflation, etc., are programmed into a computer and then the ill programmed computers spit out thier conditioned responses.
There will be no corporate jobs for those who call into doubt the rationality of the existing flawed capitalist system.
Economics students in college are taught the "works of the giants in their field" like Adam Smith, David Ricardo, Alfred Marshall, and John Maynard Keynes—all men with ulterior motives and an agenda.
We churn out new generations of economic charlatans, under the guise of "science" . These charlatans will peddle their bourgeois nostrums to corporate power in the hope of getting good jobs and big bucks.
I do NOT believe that all of them are daft.
They are just selfish, and they do NOT have a conscience. These evil men and women are driving the world as we know it ineluctably towards destruction.
I have not touched the evil field of “stock market playing field tilting” and “market manipulation”, “insider trading” and, “ inflate and deflate tactics” to favour a greedy handful of the wealthy and powerful .
They do all this on computer with impunity, using brokers. Stocks rise in the morning, the powerful, fed with “inside undisclosed information” sell and share prices get deflated by the end of the day.
ANOTHER THING --
How do hedge fund industry movers and shakers justify such incredible windfalls? Because they bring such incredible smarts to the table—with their empirical statistical models to weave magic , which nobody else can comprehend?
Why does the hedge industry operate behind closed doors? Can anybody just walk off the street into a stockbroker’s office and invest in a hedge fund? Why do the Hedge funds face precious zilch regulation?
Oh, I got it --them deep-pocketed investors have the sophistication to protect their own interests, right?.
Regulatory hands-off means hedge fund managers nay scamsters are totally free to invest anyway and in anything they want.
They can buy new-fangled speculative assets they think will soar in value. They can also “hedge” their bets, by laying down financial wagers that a particular asset’s value is going to sag.
For all this investing and hedging, hedge fund managers demand majestic levels of compensation.
And when s#it hits ZE fan, there is always that —"hey Ma , I still have mE stimulus package"— bail out , right?
Where else can you have billions of dollars in wealth disappearing into thin air, just by tweaking a formula in a computer?
I have been at sea for the past 4 decades – and this is my observation.
There was no discernible rise in aggregate global temperatures or sea levels for the past 4 decades.
Green house gases causing Global Warming is a BIG LIE, so that rich countries without natural resources can get richer .
The global warming computer modeling – propagated by Rothschild and his stooges—is worse that their Adam Smith Economic Theory.
Third world and under developed countries must stop paying “carbon tax”.
Stop the global warming nonsense being taught to innocent school children.( Darwins theory is still being taught in this age of DNA , what a disgrace )
This must be done immediately!
Punch Into Google search-- THE LIE OF GREENHOUSE GASES CAUSING GLOBAL WARMING- VADAKAYIL
ADAM SMITH MAY BE PERCEPTIVE -- BUT -- THERE ARE PEOPLE WITH GREATER CONSCIENCE WHO ARE MORE PERCEPTIVE THAN HIM.
Energy occurs in many forms, including chemical energy, thermal energy, electromagnetic radiation, gravitational energy, electric energy, elastic energy, nuclear energy, rest energy. These can be categorized in two main classes: potential energy and kinetic energy. Rothschild had shoved in money into this model— where potential energy added to kinetic energy remains a constant. They do it in a capacitance, conductance and inductance model. Only morons will NOT release that money is handled by fallible human beings who can be manipulated—and some humans have less potential than others.
How many of you knew that Marx ( blood relative of Rothschild ), Lenin, Stalin, Trotsky etc are all Jews. Communism is nothing but state capitalism, and this is why it is not free from the defects of capitalism. In state capitalism industries are centralized. Capitalism and communism are essentially the same internally, to an intelligent man.
For several years now, Indian economy has displayed its independence, has been growing stronger and is indifferent to fluctuations of other economies.
It does NOT get shaken and stirred by fluctuations in the U.S. and EU markets.
Adam Smith made a couple of observations – that the butcher, the baker and the brewer do not supply meat, bread and wine for satisfying the ‘consumer’ but for serving their own self-interest in the form of ‘making a living’. Every idiot knew this , he did NOT run to the Rothschild monopolized media to print this out.
Adam Smith also identified the principles of supply and demand. Every idiot knew this too. The idiots knew further—that after eating 2 tasty biriyanis, his HUMAN PSYCHE does not allow him to eat a third one, without allowing a TIME FACTOR in between.
This is where and when Adam Smith should have been discarded into the garbage bin.
Bottom of the barrel modern economists rarely have mathematical brains. It is NO wonder that their unreal and daft mathematical equations failed.
In 2008 we had a great humpty dumpty fall . How many of these “baffle with bullshit” modern economists saw it coming?
Mediocre economic students are arm twisted into studying a ridiculous abstract model saturated with overly mathematical theories of economics. They do NOT understand that this model must apply to the psychology mankind. Even ecology should have been factored in.
Can what is good for “unlimited potential” India be the same as what is good for Saudi Arabia? Can a stork sip water from a flat plate or a fox from a narrow necked jar?.
None of these economic students had the grey matter to ask , if economics can indeed be blindly interpreted in an unreal abstract manner ( like Picasso’s nonsense ) through numbers and equations without any background in the real social sciences or any consideration of the ‘human subject’ central to it all.
Margaret Thatcher was steeped in firm belief (of the Chicago School ) that mass privatisation was the cure to society’s ailments – meaning a more hardened, unleashed, unregulated and profit-determined capitalism was the way forward.
Of course she had her financial advisor Victor Rothschild to tell her all this, for this shop keeper’s daughter just did NOT have the grey matter. She treated unemployment as a mere statistic, something to be negotiated not in terms of the suffering of those John Bulls unemployed but in terms of freeing her government of responsibility.
Did not Margret Thatcher lisp pseudo individualism though her ill fitting dentures “there is no society, only individuals and families” and keep capitalism alive through crisis after crisis, generating mass wealth for the top 1 percent. Her concept of society was based on Freemason Charles Darwin’s psychology of ‘the survival of the fittest’.
Modern Economics is an empirical pseudo-science which exists solely to support and propagate a social order in which the top few have mind boggling wealth, the rest of the masses exist in poverty, and corporations enjoy unfettered power. This new social order is called neoliberalism.
Ever understood the pyramid schemes like Amway where the top apex rakes in all the moolah while sitting still on their gargantuan backsides, while the slave drones at the base of the pyramid drown in their own blood and sweat?.
Business schools brainwash their students with absurd mathematical fictions, stolen without comprehension from 19th century classical physics, in which "free" markets operate as perfect timeless machines which maximize everyone's happiness. Even today they continue to tell these immoral stories in the face of overwhelming scientific evidence that they are false because doing otherwise would require economists to grapple with power, emotion, and the frailties of humanity.
Even the great fall of 2008 did NOT spur these economists to do self gynecology ( they will never accept an outside opinion like mine ) .
They will NOT allow anybody to interfere with their divine ( cocaine charged ) policies and assumptions of natural equilibrium, market efficiency and statistical predictability.
They will NOT agree that this world is too complex and uncertain to be analyzed with models that assume a natural equilibrium of a future that is predictable, at least in a probabilistic sense.
They will NOT agree that even competitive and perfect markets can make disastrous mistakes, as emotion controlled humans ( not pre-programmed robots ) call the shots.
They will NOT agree that a world economy that is highly unpredictable must be managed with fairy broad and flexible tolerance ranges for indicators such as inflation, government borrowing or unemployment, instead of the precise inflation targets of the pre-crisis period.
They will NOT agree that rigid rules devised many years ago are totally irrelevant.
Is there any need for perfect mathematical solutions? Is anything wrong in flexible nay solutions where an imperfect human is factored in. Confucious would have spake- “Every problem has multiple solutions and that each solution will lead to new problems down the road”.
The truth is that there is NO global economy. All economics, like all real estate for, example, is LOCAL. History proves capitalism which maintain central banks who create money out of thin air, is NOT self-correcting. These central banks completely ignore the impact of bank lending—no wonder they are unable to ward off the effects of financial crisis.
The models used by economists and central bankers do not reflect the increasing complexity and interconnectedness of the global financial industry. 82% of the entire global corporate world is controlled by less than 100 companies. And the vast majority of these cartel controlled financial institutions that have become so highly interconnected that a seemingly isolated problem in one institution can quickly spread to infect the whole system.
When the human body develops gangrene , the bad affected part must be amputated, so that the whole body is NOT infected .
Rothschild's Indian agent ( his wife is Rothschild ) Amartya Sen is the Mother Teresa of the Banksters. Both Vatican poster girl Teresa and Bankster are criminal words.
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Some of you may want to know further about EVIL Mother Teresa. Come back later and punch into Google search - DIABOLICAL MINISTERING ANGEL TERESA VADAKAYIL
When an economist cannot understand what is happening and is asked simple questions on TV he will start using complicated words ( baffle with bullshit method ) like “dynamic stochastic general equilibrium”, to show that he knows more than the public.
They keep making zany assumptions in percentages based on scanty or NIL information. Next time check out the dogma of Montek Singh Ahluwalia and our PM Manmohan Singh .
This is the same type of dogma our own yuv-raj , the quintessential akkal ka dushman ( enemy of perception ) dishes out to village kids — he will never engage in a debate on live TV . . After all, the more dogmatic the policymaker the more likely he will be overconfident and allow simple policy errors to become enormous and costly policy errors.
The economists with the highest public profiles are invariably those economists ( like Montek Singh Ahluwalia ) that are the most dogmatic. Probably all these economists must be wired to a lie detection system when they come on TV.
There must be a law to punish such people who fool the masses deliberately with assumption made to suit their method of useless thinking. These are policymakers who have fallen victim to the fallacy of treating an abstraction ( the model of the economy) as if it were the real thing.
With macroeconomics — the study of the economy as a whole — you can’t put countries and entire economies in a lab. All you can do is to it there and watch history go by, and try to deduce some patterns, which vanish like smoke wisps as soon as you think that you’ve found one.
After all Economics is a pseudo-science which is made to look like real science with math, and graphics by banksters and bankster monopolized media and peer-review journals. The Rothschild cartel stooges, the economists like Amartya Sen , are mere propagandists.
Money is simple. Psychopath bankers have made it complicated because it benefits them dis-proportionately to their contribution to society, to keep the crafty system in place.
The world’s Banking Cartel is equivalent of the corrupt and immoral Vatican of the middle ages which had to be fought and reined in by the protestants and others. The Church of the middle ages was just as powerful as the modern international bankers are today.
The evil church’s power was broken because of the printing press invented by Johannes Gensfleisch Gutenberg . People started reading and interpreting the bible themselves instead of relying on the priests.
Likewise the information superhighway provided by the large hearted internet is our new Gutenberg, to bring the evil economist cartel to their knees. The cartel is unable to control the information flow on the net ( like this post ) and is screwed , and knows it too.
The business schools create brainwashed economists. These are charlatans and propagandists giving pseudo-intellectual cover to the looting and general criminality perpetrated by the 1% against the rest of us. They have to toe the line or they wont pass their exams or get employed. Committed charlatans to the top 1% are given scholarships to US universities and given falthu "best economist "awards .
The very fact that our own PM Manmohan Singh inaugurated Amway in India shows who he is.
Punch into Google search-
AMWAY MERCHANTS OF PIPE DREAMS VADAKAYIL
Jew John Maynard Keynes's Civil Service career began in October 1906, in the Rothschild’s India Office. The India Office was a British government department created by Rothschild one year after he took over British Raj in India officially in 1858 to oversee the administration, through a Viceroy.
We have Rothschild Stooges like Manmohan Singh sucking up to Keyes brand of Economics -- reflecting "His Master's voice".
Our Prime Minister Manmohan Singh spoke in favour of “Keynesian fiscal stimuli” ( BLAH BLAH ) at the 2008 G-20 Washington summit on Financial Markets and the World Economy, Nov 14–15, 2008, in Washington, D.C.
So pretty soon we have a rapid shift of opinion took place among many prominent economists in favour of Keynesian stimulus, and, policy makers began announcing major stimulus packages, in hopes of heading off the possibility of a global depression.
These morons think that Manmohan Singh is intelligent. Only we Indians know what he is worth.
‘Keynesian economics rests fundamentally on the proposition that macroeconomics isn't a morality play – that depressions are essentially a technical malfunction.
As the Great Depression deepened, Keynes famously declared that "we have magneto trouble" – i.e., the economy's troubles were like those of a car with a small but critical problem in its electrical system, and the job of the economist is to figure out how to repair that technical problem.’
It requires a real stupid brain to perceive that an economy can be compared with a machine, when you could tweak things with a pipe wrench.
Unlike a machine, an economy was neither designed by anyone nor built in a factory. There are no plans...no owner's manual...no guide to troubleshooting problems...and no website where owners go to talk about the problems they've had and the tricks they've used to fix them.
First, an economy is a ‘complex adaptive system.’ It has lots of moving parts, in other words, and each of these parts has information and desires of its own.
The parts have desires of their own. You build a machine to accomplish the desires of the designer. An economy, on the other hand, is merely a way for the constituent parts to achieve their own ends.
The production of wealth should not be tied to its distribution. The former is in the field of "applied economics" while the latter belongs to "social economics" and is largely a matter of power and politics.
Assumptions must NOT be made on scanty information. This is how you get financial market depressions. The field of information economics includes both mathematical-economical research and also behavioral economics, akin to studies in behavioral psychology.
An economy is not some independent physical process like plate tectonics. It is a collaborative human enterprise. BRICS is now all set to upset the immoral applecart of the Rothschild banking cartel by introducing a new central bank.
Since the economy serves a social function, it can not be separated from politics and social engineering . The early economic thinkers knew this and wrote in terms of political economy. Somewhere in the 19th century this concept was lost and immoral economics as propaganda was born.
Mythological beasts known as “free markets” appeared. Common sense tells us that free markets have never existed, that it has always been a question of who controls them for whose benefit.
The result of all these vulgar lies and confabulations is that society’s purposes, its goods, are replaced by the few greedy banksters who use the political process to steal and concentrate the wealth of the many into their hands.
Because economic processes are agentless and independent, they can claim that their wealth is just a natural outcome of these processes. In other words, they stole nothing and all their lootings are legitimate.
Furthermore, any attempt to redistribute their wealth, society’s resources, back to the many would be the real theft. The people who speak about this theft are jailed or eliminated or raided and decimated by the IRS. Economics is not a set of laws but a set of power relations.
An economist is an pseudo expert who claims to know tomorrow by the things he predicted yesterday didn’t happen today. He is dangerously close to asking the public to treat economics as a religion.
These immoral economists have built themselves into powerful policymakers and advisers, precisely because they argue that economics is as reliable and predictive a science as physics or chemistry.
Stop printing and broadcasting the opinions of economists so frequently. Every time a Rothschild controlled rating agency like Fitch or Moody’s or S&P lowers India’s rating don’t behave as if you balls have been electrocuted.
This is the way the waitress turned empress ushered in FDI in multi-brand retail into India, right? These people whom we drove away in 1947 after 800 years of slavery have been given a toe hold all over again.
Insist that all predictions and pronouncements from economists include a full disclosure of the assumptions and limitations of the models used.
It is high time we shortened the leash on the nostrils of these ninnies, and have them up on a single toe.
Today’s so called economists are the modern equivalent of medieval churchmen in robes trying to confound and baffle the world by shoving in high school calculus in between the Bible verses.
REMOVE ECONOMISTS LIKE AMARTYA SEN FROM POLICY MAKING BODIES.
Debts that cannot be repaid will not be repaid. The debt held by the US public was approximately 12.01 trillion USD or about 75% of US GDP. Intragovernmental holdings stood at 5.02 trillion USD , giving a combined total public debt of 17 trillion USD . 5.6 trillion USD or approximately 47% of the debt held by the US public was owned by foreign investors, the largest of which were the People's Republic of China and Japan at just over 1.1 trillion USD each.
If a mischief maker uses his “paid up media” and spreads the rumors of the company's ( or country’s ) bankruptcy, within no time the investors will withdraw ALL their investments from that company's share and the price of the share will fall down drastically.
Those who want to know more about human emotion , punch into Google search-
DOMINO EFFECT IN CHANGE MANAGEMENT VADAKAYIL
TERRAIN MUST PREVAIL OVER
MAP, ALWAYS - VADAKAYIL
All policy making economists must be made to take a “Hippocratic Oath”, stating that any policy advice will be first weighed to do no (or minimal) harm to the public good.
A computer does NOT have a conscience. This is why Modern Economics which is hijacked by empirical formulas or Quadratic Equations , which can be tweaked to suit a selfish soul less Central banker, has wreaked terrible damage to society.
Above: Map over terrain?
Every human being on this planet has natural rights . he has a right to food, water and shelter.. Anyone who attempts to snatch away these basic sovereign essentials is a vulgar villain and must be treated as such.
The defining principal of economic governance, should be a fair deal and a fair equity for all.
Modern Economics has failed miserably . The rich and greedy of the Bilderberg Club have used their clout to dictate the rules of economic theory and further their self interest…
Central banks now dictate terms to large developing nations . Or they will be bled dry by carte blanche banking practices. India has to accept Rothschild’s demand that their stooge Manmohan Singh will be mane finance minister by giving him a back door Rajya Sabha ( House of Lords) entry from a remote Assam state.
Slavery is being permitted in the name of economic growth and profit. We've all contributed to allowing Rothschild’s economic system to enslave our lives.
This modern cryptofascist plutocracy has refined human exploitation to a high degree. Politics first, its handmaiden/method of enslavement - economics, second. The knife that cuts cannot cut itself.
Economics is the only “science” where 100% wrong theories has persisted for generations. Why is the intelligentsia of this planet NOT confronting these fake economists who perversely insist that the Adam Smith theory is still valid in contradiction to the evidence.
Is this mental insanity?
Why does it take a ship’s captain to pour his thoughts in his blog post, hoping against hope that some reality will creep in?.
Modern economics has failed to predict the 2008 financial crisis. After 5 years of analyzing the crisis there are still NO answers totally discrediting all these self conferred kingpins of economics—like our Manmohan Singh and Montek Singh Ahluwalia .
History holds no lessons for our turbaned "snap shot" expert duo.
They talk about economics as a homogeneous field in which “free market” “rational expectations” holds water. .Their field of economics is strewn with bullsh#t theories, many of which are not based on rationality assumptions or completeness in markets.
Some times they come on TV and start taking questions— and they confidently give religious cult type gibberish –nay- zombie nonsense like dorks . They talk in such a deliberate foggy manner to induce cerebral numbness and a blank, all accepting stare.
I wonder if they would do the same thing if hooked on to a lie detector. Economics is a handmaiden employed to perpetuate the Banking Cartel privilege, an evil institutionalised system of enslavement of the many by the few.
It is truly ridiculous that people still accept that Rothschild’s Central Bank can be directed by the government. .
Choo Chweet -- giving control of our money away to Banks exclusively doing business and profiteering, by lending it back to us?
Is it not obvious to even a dumbo , that those banksters who lived on the return on lending has an interest to deceive the public using all vulgar and immoral tricks at their disposal and also to to have governments ( on their payroll) intervene in the market in their favour.
A fair model of economics in consonance with principle of natural justice is the need of the hour.. Fake and fraudulent economics must NOT be allowed rules over humanity.
As a civilised society we can demonstrate awareness by not fawning over the fake conservatives enamoured with the now dead theories.
Modern economics uses the trappings of science, like dense mathematics, but only to baffle with bull. Modern capitalist economics cannot predict the future, as the global financial crisis showed.
Economics has become a kind of religion, belief in which is necessary unless one be cast out as a pariah or a heretic.
Big business magazine Forbes loudly demanded that the new socialist city councillor in Seattle, Kshama Sawant, be banned from teaching economics – a subject in which she has a PhD – because she doesn’t believe in the Rothschild capitalist version.
You have to parrot what the Rothschild remote controlled and brainwashed teachers have taught you in business schools, to survive. Science can prove itself in practice and has nothing to fear from opposing views – while pseudoscience can only rely on immoral force and vulgar rhetoric.
The oligarchs use pseudo-philosophies like Ayn Rand’s Objectivism, and other non-rational ways to convince themselves that they “deserve” their privilege and power.
Economics is and never will be a science in the same sense as a hard science. Economics isn't a physical science and can't pretend to contain processes that are governed by laws; not even by theorems.
Is is no wonder that these mindless theories eventually become so complex and restrictive that they become more interesting to economists to show how smart they are, but less useful to the world at large.
Without measurement and quantifiable assessment, economics becomes just political economy; linked to politics and power, and using words such as "should" and "ought" and "perhaps" and “I believe”.
These are concepts and phrases popular with crooked politicians because that uncertainty gives them power over the ignorant, the uncaring, the desperate and the leaderless.
It is difficult to wake up an economist who is pretending to sleep. He has to be kicked awake on a spot where it hurts real bad.
"The economist specialist is, in the truest sense, an idiot—nay – an asshole ".—Capt Ajit Vadakayil
Grace and peace!
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CAPT AJIT VADAKAYIL
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