Archive for the Economics Nobel Category

Kleptocracy, Inc.: Rebranding America (November 18, 2013)

Posted in Awards / Incentives, Bailout/Bribe, Banks and Banking System, Bernanke, Economics, Economics Nobel, Federal Reserve, Kleptocracy, Stock Market on November 18, 2013 by e-commentary.org

. . .

A          “‘Go Kleptocracy, Inc. Go’ doesn’t have the same ring as ‘Go U.S.A. Go.’”

B          “You could replace the stars with dollar signs and the stripes with universal product codes to reflect the monetization of America.  Rally ‘round the ‘Dollar Signs and Bar Codes’ does not alliterate the way rally ‘round the ‘Stars and Stripes’ does.”

A          “And doesn’t sound right, does it.”

B          “To say that everything is a lie and a fraud is an understatement.”

A          “Almost everything is a lie.”

B          “That may be closer to the truth.”

. . .

B          “A kleptocracy is an oligarchy that no longer is even vaguely concerned about even the pretense of evenhandedness or equality.”

A          “That’s it; that’s us.”

. . .

B          “And yet so many commentators point to the Dow that topped 16 Grand for a time today.”

A          “It’s over the top.  The rise is so tightly correlated with the monthly eighty-five billion dollar ($85,000,000,000.00) bribe paid by the Federal Reserve to the Big Banks.”

B          “What if they doubled the bribe to one hundred and seventy billion dollars ($170,000,000,000.00) each month paid to the Big Banks.  Why not.  Everything is a fraud and a lie and a fraud.”

A          “The crash will be even more epic.”

. . .

A          “One of the former Federal Reserve officials confessed and apologized for the program known as ‘quantitative easing’ as the ‘greatest backdoor Wall Street bailout of all time’ with little real economic expansion.  Bernanke* is a nice guy who has really done little more than dispense bribes to Big Banks.”

B          “Like Bernanke*, Jellen may be the best this talent-starved kleptocracy can produce.  She will continue the official Federal Reserve policy of dispensing bribes to Big Banks.”

A          “In her testimony, she assured Wall Street and the Big Banks that she will maintain their primacy and hegemony.”

B          “Congress charged the Federal Reserve with considering employment.”

A          “The Fed is mindful of the impact of its bribes on employment on Wall Street.”

. . .

A          “What if he went out like former President Eisenhower and delivered a warning about the perniciousness of the financial industrial complex?”

. . .

A          “The answer is so obvious and so easy.  Preclude any bank from holding more than one hundred billion dollars ($100,000,000,000.00) in assets.”

B          “The Big Banks will never approve that action by the Federal Reserve.”

. . .

A          “The Norwegians do not help when they dispense their trophy to the cheer leaders who put a cheery façade on the fraud.”

B          “And the e-con-omics departments oblige by providing a steady pipeline of obedient sycophants.”

. . .

[See the article titled “Andrew Huszar: Confessions of a Quantitative Easer” at http://online.wsj.com/news/articles/SB10001424052702303763804579183680751473884.].

[See the “e-ssays” titled Greenspan’s Legacy – Apres moi, Le Meltdown (January 30, 2006), The Dow Jones (the Murdoch ?) Hits 14 K In A Hollow Economy (July 23, 2007), A Bleak Day: The Trillion Dollar Tragedy (October 6, 2008), The TARP Is A Trap (January 19, 2009), The Bush Grand Slam (February 14, 2011) and (M)End The Fed (July 11, 2011) concluding with a draft Federal Reserve Enforcement Order that Janet Jellen could issue in her first few weeks on the job.]

Bumper sticker of the week:

In Greed We Trust

Columbus And The Redskins (October 14, 2013)

Posted in Awards / Incentives, Consumerism, Economics Nobel, Football, Race, Sports on October 14, 2013 by e-commentary.org

. . .

1          “Columbus Day lands at a fortuitous time between Labor Day and Veteran’s Day and keeps the steady cycle of holidays and spending sprees rolling along.”

2          “The summer, 2014 lines of consumer goods and bads have already been rolled out at a few malls.”

1          “We are mauled at the malls.  And the day arrives just in time for the great debate over the team’s name.”

2          “The name is not used disparagingly.  The name is part of the tradition and history and culture of the team.  Leave it.  Address real problems.”

1          “Western man invaded the continent and used a great Zamboni moving from east to west to scrape the Natives off their land and deposit them on patches of unproductive dirt.  And then we use a term to refer to the dispossessed that is not endearing.”

2          “And introduced germs and genocide.  And grew the gross domestic product of the newly formed United States of America by stealing land from the Red man and liberty from the Black man.  All true and all troubling.  Yet the name is positive in context and has positive connotations in practice.” 

1          “The individuals who dislike the use of the name are organized and zealous.  Those who like or tolerate the name are not organized and may not be as passionate.  The vocal group will compel a change in the next few years.”

2          “Seems to me that we need to pause, catch our breath and reflect on what really matters.”

. . .

[See the “e-ssay” titled Skip the Nobel in Economics? (Oct. 6, 2009) for its continuing relevance to today’s announcement.]

[See the “e-ssays” titled The First Look At The “Second Political Party” (January 3, 2011) and Immanentize The Eschaton: Move To Sunny Somalia (December 20, 2010) for some perspective on the current global political climate change.]

Bumper stickers of the week:

Go Redskins

Go Skins

Energy “Manhattan Project”: The “Carbon Tax And Dividend” (March 25, 2013)

Posted in Awards / Incentives, Economics, Economics Nobel, Gay Politics, Global Climate Change, Global Warming, Supreme Court, Taxation on March 25, 2013 by e-commentary.org

. . .

C1         “The ‘Manhattan Project’ wisely collected all the talent in one location under one command to develop the atomic bomb.  The project required the right mathematical formulas and the right raw materials to be assembled by one team under one governmental authority.  Some say the solution to our energy challenges is to create a Manhattan Project under one authority with one energy czar.  However, the solution is not to establish a government agency but rather to enlist and unfetter the market mechanism.  Rather than subsidizing a company that is politically connected or sports a flashy marketing campaign, let the market decide.  Let not one but one million citizens work on it.  The proposed ‘carbon tax’ provides a tax on carbon and thus rewards those who can reduce or avoid the production of carbon and taxes those who cannot.  The funds collected by the tax are returned as a dividend to the public to maintain revenue neutrality.”

C2         “The ‘old cap and trade scheme’ created undesirable property rights that would be unworkable and undesirable.  A carbon tax and dividend sounds workable and desirable.”

C1          “Friedrich van Hayek would have endorsed the carbon tax and dividend mechanism.  He surely is rolling over in his grave because we as a society have not adopted it.”

C2         “I know that I for one want Fred to rest in peace.”

. . .

[See the website http://www.citizensclimatelobby.org/.]

Bumper stickers of the week:

A planet is a terrible thing to waste

Sign outside the Supreme Court:  “Supremes:  You can hurry love.”

Sports Writers: 1 – 0 (January 14, 2013)

Posted in Awards / Incentives, Courts, Economics Nobel, Federal Reserve, Guns, Journalism, Law, Newspapers, Perjury, Perjury/Dishonesty, Sports, Taxation on January 14, 2013 by e-commentary.org

. . .

A          “A mixed group of informed individuals acting individually issued a profound collective indictment.”

1          “In court, the government only determines whether a person is guilty or not guilty, a court does not determine whether a person is innocent.  Yet when you look carefully, far too many courts have found far too many innocent individuals to be guilty.”

A          “Still not a great idea to be Black or Brown and get mixed up in the American judicial system.”

1          “It is to be eschewed.  The government is not and should not be allowed to deprive someone of his or her liberty without proof beyond a reasonable doubt.  The court of public opinion does not need to meet that high threshold when considering those who play on the court or field or pitch.”

A          “The sports writers are akin to an informed group of jurors from all ages, albeit a little older, and backgrounds, albeit a shade White, and world views from different parts of the country.”

1          “On the uniforms, they sport the initials MLB not MDL – the Major Dopers League.”

A          “They can get their own hall of fame, the Hall of Shame.”

1          “I might waive the character requirement and support a scoundrel if he played clean against others who played clean.”

A          “They may also be atoning for the great oversight in the late 1990s when any honest person realized that the guys were juiced and few said anything.  Finding the individual who was not juiced or was not juiced much will be a challenge.  The brush could be too broadly brushed.”           

1          “This is a promising start.  Now if we can get the Norwegian suits to follow suit and not award the Nobel in e-con-omics unless they award it to someone who understands eco-nomics.”

A          “Everyone from Roberts on the Supreme Court to players on the courts succeeds by lyin’ and cheatin’.”

1          “He’s a lawyer-type.  He said that he would call balls and strikes, but keep this in mind.  He never ever said that he would call a ‘ball’ a ‘ball’ only that he would call balls and strikes.”

A          “He and Alito and Thomas and Scalia are having a ball.”

1          “Dishonesty and hypocrisy are so American.”

A          “So human really.  We don’t have a monopoly on it.”

. . .

[See http://www.nytimes.com/2013/01/17/opinion/australia-banned-assault-weapons-america-can-too.html?hp for some international perspective on gun restrictions.]

[See the “e-ssay” titled “Why Johnny And Roger? (April 30, 2012)” and the recent article on the deliberations of the Federal Reserve at http://www.nytimes.com/2013/01/03/opinion/the-new-tell-all-fed.html?hp&_r=1& and the “e-ssay” at The Kids (At The Fed) Are Not Alright (January 30, 2012).]

Bumper sticker of the week:

Play ball!

Mitt’s “Destructive Destruction”: The Bane of Capitalism (July 9, 2012)

Posted in Economics, Economics Nobel, Newspapers, Presidency, Press/Media, Romney on July 9, 2012 by e-commentary.org

 

 

. . .

J1          “Facts are facts.  Mitt never created jobs in America.  He destroyed jobs in America.  Mitt never created wealth.  He expropriated wealth.  Some call it ‘creative destruction.’  It is not ‘creative destruction.’  It is ‘destructive destruction.’  Let’s call it what it is.”

J2          “Seems to me that if you acquire a company with one thousand employees with borrowed money you do not intend to pay back and fire four hundred employees, you have not created six hundred jobs.  The risk-taking entrepreneur who worked late and on weekends thirty years ago to build the business and expand to one thousand employees created one thousand jobs.  Mitt is part of the problem, not part of the solution.  But journalists can’t say that.”

J1          “I know.  I understand.”

J2          “Then you are not a journalist.”

J1          “I can live with that.  But I still maintain there should be a decennial Pulitzer awarded for Truth.  And an occasional Nobel in economics awarded to someone who knows something about economics.”

. . .

Bumper stickers of the week:

Bain Capital – the bane of capitalism

Eviscerating America is not building America

From e-con-omics to eco-nomics? (August 1, 2011)

Posted in Bankruptcy, China, Economics, Economics Nobel, Education, Energy, Environment, Pensions, Schooling on August 1, 2011 by e-commentary.org

. . .

(           “The Keynesians are using a screwdriver to hammer a nail.  The monetarists are using a hammer to drive a screw.  The wrong tool is selected because the challenge is not understood.”

)           “So we are screwed and hammered?”

(           “E-con-omists do not even recall the central tenet of economics.  Resources are scarce.  Not enough resources are available today to provide the growth needed to provide everyone with a first-world life style.”

)           “You know that observation is politically unacceptable.”

(           “The department of e-con-omics today should be merged with the department of religion.  The e-con-omists are marketing voodoo.”

)           “What about the department of psychology?  Or the department of environmental sciences.”

(           “What about creating a department of 3Es – energy, economics, and the environment?  What about adding a class in Mega-eco-nomics to the traditional classes in Microeconomics and Macroeconomics?”

. . .

(           “Economics is laden with rich irony.  The use of the word ‘gross’ in ‘gross domestic product.’  The products and services often are gross.”

)           “Look at the felicitous term ‘trickle down’ in ‘trickle down economic policies.’  The theory posits that all the money should be given to the wealthy and very little will trickle down to the populace.  Should anyone be surprised that very little trickles down to the populace.”

(           “And the Laffer Curve was worth a laugh but not much more.”

)           “We need more eco-nomists who recognize and accommodate limits to growth even though the realization is anathema in today’s political climate.”

(           “Very few are going to go quietly.”

. . .

Bumper stickers of the week:

You are stronger than the tool; the tool is smarter than you are.

Central Falls falls

The Senate confirmed Gary Locke as Ambassador to China by unanimous consent on July 27, 2011

Domestic Economic Terrorism and National Security (Nov. 23, 2009)

Posted in Bailout/Bribe, Economics, Economics Nobel, Education on November 23, 2009 by e-commentary.org

. . .

“Their secret badge gives them away.  They sport the tell-tale ‘White Bling-Bling’ – the porcelain American flag on their blue serge suits.”

“And are themselves among the most vocal boosters of the ‘war on terror.’”

“They really are the economic terrorists.  And irony is not their strong suit.  I never fail to be amazed that the economic terrorists are roaming freely within our borders.  Their economic shenanigans produce absolutely no real economic, financial and/or fiscal benefit of any kind for anyone but themselves.”

“Look at it from their perspective.  They acquire a thriving company created and developed by others over years or decades, loot any funds for themselves, vest it with unbearable debt, fire the employees and ramble on to the next victim.  You have to admit that they are doing something.”

“There is no justification, no explanation, no rationale, and no excuse for their activities.  They steal from the public and ultimately loot the public fisc.  Can you name three individuals who have legitimately made a fortune in the last decade?”

“By name?”

“The robber barons of old actually produced something.  They produced a railroad or a newspaper or a steel plant and then endowed a university and a foundation.  Today’s economic terrorists are above the law because they own those who make the laws and those who interpret and enforce the laws.  The profitable universities exist to vet and supply obedient new recruits.  The Nobel Committee awards their mathematical sophistry.  The federal government rewards and bribes and bails out the players at every turn.  Everything is working against us.”

“And there is nothing you can do about it.  Nothing.”

“There are at least six major cavils with their exploits.  These economic terrorists threaten the efforts of generations of Americans who worked and sacrificed to:

form a more perfect Union,

establish Justice,

insure domestic Tranquility,

provide for the common defense,

promote the general Welfare, and

secure the Blessings of Liberty to ourselves and our Posterity.”

“And thwart the pursuit of happiness.”

“That too.  Willfully destroying the American economy is also willfully destroying America.  That is a threat to American security.  That is treason.”

. . .

[See the “e-ssay” dated Nov. 27, 2006 entitled “Higher Education Tomorrow” discussing the pipeline of privileged kids pouring into I (investment) banking, the “e-ssay” dated Feb. 23, 2009 entitled “Close the Harvard Business School,” the “e-ssay” dated Oct. 6, 2009 entitled “Skip the Nobel in Economics?,” and the “e-ssay” dated Feb. 9, 2009 entitled “1000 AUSAs” suggesting that a return to the rule of law or a turn to the rule of law is warranted.  That will require the courts to issue many warrants.  The other “e-ssays” collected under the “Categories” for “Economics” and “Federal Reserve” among others provide additional pieces of the puzzle.]

Take it easy Thursday.

Bumper stickers of the week:

Support the “War on Terror”: Indict an Economic Terrorist

Better to know the judge and to own the lawmakers than to know the law and adhere to it.

Skip the Nobel in Economics? (Oct. 6, 2009)

Posted in Awards / Incentives, Economics, Economics Nobel on October 6, 2009 by e-commentary.org

Nobel Prizes are announced in the next week.  This may be the year not to award the Sveriges Riksbank Prize in Economic Science in Memory of Alfred Nobel.  Okay, there may be some deserving recipients.  Maybe.  However, the discipline and the profession are failing.

Macroeconomic models are founded on fallacious assumptions about “rational” behavior and thus their conclusions are unfounded.  An individual is greedy but not rational in a predictable way.  Few individuals act in a “self-interested” way which is adequately defined as gilded greed undergirded by thought, reflection and calculation.

The “quants” on Wall Street may be quaint.  They are the economists who purported to be able to assess and manage and even eliminate risk using complex and inscrutable formulas.  There is always risk; the only question is who assumes the risk and suffers the downside.  Asserting and rewarding the proposition that “2 + 2 = 5” does not mean that “2 + 2 = 5.”  The quants and their kin were engaged in fraud perpetrated with numbers and formulas rather than with letters and syntax.  The Nobel Committee rewarded their efforts; the government rewarded their failures.

Someone interested in pursuing a Piled higher & Deeper (Ph.D.) in economics must buy into the established orthodoxy of a school and a school of thought.  Someone matriculating at a university is endorsing a worldview that is not based on an accurate view of the world.  The free-for-all culture in economics departments does not promote or provoke unrestrained free thought.  Economics departments are profit maximizing; they will produce whatever is rewarded.

Or they should give it to someone who knows something about economics and has conveyed a few sound ideas.

Bumper sticker of the week:

If all economists were laid end to end, they would reach the wrong conclusions.

1000 AUSAs (February 9, 2009)

Posted in Bailout/Bribe, Crime/Punishment, Economics, Economics Nobel, Law on February 9, 2009 by e-commentary.org

Some commentators are suggesting that the current economic crisis is a result of amnesia.  Too many years have passed since the failure of Long-Term Capital Management, a business that pursued a short term business scam, they say.  LTCM followed an economic formula developed among others by Robert Merton and Myron Scholes who both won the Nobel Prize in Economic Sciences in 1997.  They won for “a new method to determine the value of derivatives.”  Derivatives are a steal for those who do the stealing and costly for the taxpayers who ultimately bail them out.  Their “value” to society:  pricey.  Does the Nobel Committee ever revoke its prize?

The problem, so the thinking goes, is that everyone simply forgot.  No one needs to remember.  Business types respond to current incentives and disincentives not to moral intoning or calls to virtue.  The message being sent today is simple and straight forward:  Crime pays.  Not only the criminal act itself but the cost of remedying the criminal act.

The Justice Department should hire 1000 new Assistant United States Attorneys (AUSAs) to prosecute the massive fraud that has been perpetrated on Wall Street for the last half dozen years.  This is not some undigested populist anger.  Without the restoration of the rule of law, the economic culture of the country will continue to rot.

Bumper sticker of the week:

Crime pays in the US of A.