Archive for the Economics Category

Wandering E-con-omists:  The Travels And Travails Of E-con-omic Sciences (November 4, 2019)

Posted in Economics, Economics Nobel, Noble Prize in Eco-nomics on November 4, 2019 by e-commentary.org

. . .

K          “For decades, the econ. boys have had their own fraternity house/crash pad/temple and a separate department in academia to give them street cred. and street money.  The peripatetic ghost was harbored first in the Department of Religion / Department of Mathematics and then floated to the Department of Psychology and is now decamped in the current haunt in the Department of Computer Science.”

J          “The great journey from the Monetarists/Mathematicians/Religionists to the Behaviorists to the Coders.  They will be giddy to see the word ‘Science’ on the plaque outside their current hang out.  The great anxiety and anguish for e-con-omists is that the few thinking folks do not regard it as a science.  And the reason the few thinking folks do not regard it as a science is because it is not a science.”

K          “Where will they wander next?  The Department of Astrology?”

J          “The Swedish central bank award for ‘E-con-omic Sciences’ nourishes their delusion and assuages their angst.”

. . .

J          “During the formal religious phase, the Monetarists/Religionists assumed what they proclaimed is an indisputable assumption:  ‘God exists’ and then jumped to the conclusion:  ‘God exists’.  The shamans and the shills collected considerable mammon and lucre for spreading the gospel that the rich and powerful must be rewarded at all costs.  If anyone doubted the conclusion, they dismissed the cavil and reiterated that it followed logically and inevitably from their indisputable assumption.”

K          “They like tautologies.  God is Mammon; Mammon is God.  Their gospel claimed to be air tight, but it lacks any real air.”

J          “It is hot air.  But their God sure made buckets and boat loads of money for those on the inside and spewed a few shillings for those who did their shilling.”

. . .

K          “During their interregnum in the Department of Psychology, at least the Behaviorists claimed to gander at how folks behave en route to positing how folks behave.”

. . .

K          “Now they are into randomized controlled trials (RCTs) that purport to explain and predict behavior.  Testing just like the doctors.”

J          “The real doctors have the Hippocratic Oath and the e-con-omics shamans and charlatans now have their precious computer code.  And they can allay their anxieties because it is after all . . . science!”

K          “But you cannot replicate the studies.  So it is not real science!”

J          “Don’t hurt their feelings.  Don’t undermine their self-esteem.”

. . .

K          “Full circle or moving forward?”

J          “Sideways or backwards?”

. . .

[See “New Nobel Winners Are Latest Bad Sign for Economic Theory” in “Mises Wire” by Peter G. Klein dated October 15, 2019, “Impoverished economics?  Unpacking the economics Nobel Prize” in “Open Democracy” by Ingrid Harvold Kvangraven dated October 18, 2019 reprinted with commentary by Yves Smith in “Naked Capitalism” dated October 18, 2019 and “What randomisation can and cannot do: The 2019 Nobel Prize” in “VoxEU” by Kevin Bryan dated October 29, 2019 reprinted with commentary by Yves Smith in “Naked Capitalism” dated November 2, 2019.]

[See the e-commentary under the Categories “Economics”, “Economics Nobel” and “Noble Prize in Eco-nomics”.]

Bumper stickers of the week:

Economics:   If I have to explain, you wouldn’t understand.  With a nod to Oscar Wilde

Not all who wander are lost, but some are

Fourth Annual Noble Prize In Eco-nomics (October 14, 2019)

Posted in Awards / Incentives, Economics, Economics Nobel, Gold, Nobel Prize, Noble Prize in Eco-nomics, Petrodollar, Silver on October 14, 2019 by e-commentary.org

. . .

K          “An award acknowledging and celebrating the work of someone on the planet who really knows something about eco-nomics.  Eco-nomics is about making and sharing; e-con-omics is about taking and stealing.”

J          “The Noble Prize in Eco-nomics is a delightful and playful replacement for the discredited and misnamed ‘Nobel’ Prize in Voodoo E-con-omics.  And I get it.  You get what you reward.  You need to reward what you want to get.  Who gets it this year?”

K          “The recipients of the fourth annual Noble Prize In Eco-nomics are . . . Professors Mark Skidmore and Laurence  J. Kotlikoff who have contributed immensely and with little credit to an undertaking that tracks and analyzes federal expenditures and properly and honestly accounts for them in reconstructed books.”

J          “Solid work.  Crafting a book that chronicles and corrects the government crooks’ collective efforts to cook the books.”

. . .

J          “They shined a bright light on government accounting and may have prompted the Federal Accounting Standards Advisory Board (FASAB) to shift government accounting further into the shadows.  Late last year, the FASAB unleashed the ‘Statement of Federal Financing Accounting Standards 56 (Standard 56)’ that replaced laxly enforced government accounting and reporting standards with official obfuscation and concealment of government financing and spending.” 

K          “Catherin Austin Fitts and the Solari staff [Michele Ferri and Jonathan Lurie of The Law Offices of Lurie and Ferri] prepared a spell-binding and best-selling document “FASAB Statement 56: Understanding New Government Financial Accounting Loopholes” that provides a comprehensive explanation of the history, amendments and consequences of the changes to FASAB Statement 56.  Everyone should leave a copy in the bathroom for light reading.”

J          “The upshot is that the government is now officially no longer accountable to the public.”

. . .

[See the “Intergenerational Financial Obligations Reform Act” (INFORM Act), “Has Our Government Spent $21 Trillion Of Our Money Without Telling Us?” in “Forbes” by Laurence Kotlikoff and Mark Skidmore dated December 8, 2017, “The Tyranny of Economists  How can they be so wrong, so often, and yet still exert so much influence on government policy?” in “The New Republic” by Robin Kaiser-Schatzlein dated September 30, 2019, the book titled “The Nobel Factor: The Prize in Economics, Social Democracy, and the Market Turn” by Avner Offer and Gabriel Söderberg and “Heretics welcome!  Economics needs a new Reformation” in “The Guardian” by Larry Elliott dated December 17, 2017.]

[See the e-commentary at “Third Annual Noble Prize In Eco-nomics (October 8, 2018)”, “Second Annual Noble Prize In Eco-nomics (October 9, 2017)”, “First Annual Noble Prize In Eco-nomics (October 10, 2016)”, “Announcing The First Annual Noble Prize In Eco-nomics (May 2, 2016)”, “Award Deadlines (Livelines?) (July 25, 2016)”, “From e-con-omics to eco-nomics? (August 1, 2011)”, and “Skip the Nobel in Economics (October 6, 2009)”.]

Bumper stickers of the week:

The United States of Anger backed its currency with Au (until August 15, 1971) and transacted in part in Ag (until July 23, 1965) and now backs its concoction d.b.a. the PetroDollar with Fe and Pb by bombing any country and killing any person who demurs to the US hegemony.

Boycott banks; support credit unions

The “Intellectual Infrastructure Investment Act” (“III”)  Oh, And Happy Valentine’s Day! (February 11, 2019)

Posted in Courts, Economics, Education, Law, Law School, Schooling, Schooling Industrial Complex on February 11, 2019 by e-commentary.org

. . .

K          “Who is doing the thinking in America?”

J          “Who is even thinking about who is doing the thinking in America?”

K          “Troubling, when you think about it.”

J          “America has the chattering class and the blabbering class and the blogging class and the twittering twit class, but not really a thinking class.”

. . .

K          “We can draw on the bipartisan enthusiasm for infrastructure.  Think about the ‘Intellectual Infrastructure Investment Act’ (‘III’) or the Triple ‘I’ as it is known in the vernacular.”

J          “Would you first establish and endow a great School of Economics or a great School of Law?  Thought must be given to establishing and endowing a great School of Foreign Policy and not long after that a great School of Journalism.”

K          “We need greatness.  We may have to settle for goodness.  We may have to settle for okayness.  We may have to settle for notcrappyness.  Some institutions need to respond to that must elusive thing in recent American experience:  Competition.  Competition with the Schooling Industrial Complex (‘SIC’).”

J          “But we really need to put the SIC out of business.”

. . .

K          “In a delightful irony, the SIC will fund the new paradigm.  A billion dollar judgment in the CTJ against Harvard Law School for damages from Pompeo’s criminal activity and a billion dollar judgment in the CTJ against Yale Law School for damages from Bolton’s criminal activity provide enough seed money to fund the undertaking.  If necessary, the judgments can be satisfied from the assets of the respective parent corporations.  Just transfer the assets digitally.”

J          “Brilliant.  Shift resources from ‘Schooling’ to ‘Education’ without any government dollars.  The project also should aspire to take the ‘A’ out of the MICAC and to substitute a real ‘A’ for clear thinking.  Let’s get going.”

. . .

[See the e-commentary at “Suing Law Schools; Suing Gun Makers.  Oh, And Happy Law Day! (April 30, 2018)”, “Close the Harvard Business School (February 23, 2009)”, “The Court Of Truth And Justice (CTJ) (August 29, 2016)”, “On The Digital Revolution (March 22, 2010)”, “‘Adjunktification’ In The S.I.C. (Schooling Industrial Complex) (March 13, 2017)”, “Schooling The Apparatchiks For the Kleptocrats (December 7, 2015)”, “On Merit and the Meritocracy (January 11, 2010)”, “Clinton, Inc., Trump, Inc., Bush, Inc., Kennedy, Inc., O’Bama, Inc. (October 24, 2016)”, “MPP / MPA:  Are They Really Masters? (November 13, 2017)” and “Johnnie Bolton:  The Triumph Of the Chickenhawks And Neo-Cons.  Join Fellow Patriots For The ‘April 14 Rally’ And The Memorial Day ‘March For America’.  Oh, And Happy April Fool’s Day. (April 2, 2018)”.]

Bumper stickers of the week:

I support the “III Act”

Think big, think long

Stagflation?!?  Hands Down Or Hands Up? (January 14, 2019)

Posted in Deflation, Economics, Inflation, Price, Stagflation, Stock Market on January 14, 2019 by e-commentary.org

. . .

K          “The way I see the economy unfolding and unfurling in the near future, everything in or on your hands right now (stocks, bonds, lands, rides, gloves, etc.) will drop precipitously in price and everything you need to get your hands on to live (grub, aqua, tent, bike, threads, etc.) will rise staggeringly in price . . . and in value.”

J          “The old ‘lose-lose’ situation.  So many people are living a hand-to-mouth existence without much in or at or on hand to use or to lose and not much in their pockets to hand over for daily necessities.”

K          “One’s assets will halve, one’s expenses will at least double.”

. . . 

K          “For those who rode the rise, the taxes that were assessed on the assets as they rose in price will not be rebated when the assets retreat in price.”

J          “And as the assets rose in price but not in real economic value, the ‘wealth effect’ induced and seduced the owners of the assets to spend more and to incur more debt because they thought they were effectively wealthier.  Those spent monies are gone and those debts are still here and naggingly awaiting discharge.”

. . .

[See the e-commentary at “The Fed: Deal with ‘Stag’; Deal with ‘Flation’? August 7, 2006)”, “Stagflation And The Fed (September 17, 2007)”and “Going Forward With The ‘Reverse Stock Split’ (February 5, 2018)” proposing to double or even triple or even quadruple the Dow overnight just for fun.]

Bumper stickers of the week:

Hard come, easy go

stocks/2 + bonds/2 + lands/2 + rides/2 + gloves/2 + etc./2 = Net Worth;  

grub x 2 + aqua x 2 + tent x 2 + bike x 2 + threads x 2 + etc. x 2 = Recurring Expenses

Darkness . . . And Light.  Oh, And Happy Winter Solstice! (December 17, 2018)

Posted in Economics, Education, Energy, Environment, Politics, Society on December 17, 2018 by e-commentary.org

. . .

J          “There is far too much darkness.  I know what needs to be known and I know what needs to be done.  And I know what needs to be known because I rejected so much of what I was told I needed to know.  And yet what needs to be done cannot be done.  The whole system is laced with so many checks and balances that keep a concerned citizen in check and everything out of balance.”

K          “And there is far too little light.  I understand so much, yet I do not understand why I do not have the good sense and the maturity to quit caring.”

. . .

[See the e-commentary at “The Power Of Small Thinking (March 12, 2018)” and “On Standards & Quality (July 20, 2015)”.]

Bumper stickers of the week:

Think big!

I think big, therefore I am

Happy Winter Solstice!

Everything Monopolized, Nothing Economized.  Completion Of “The General Theory Of Economics” Is In Remission . . .  Oh, And Happy Halloween! (October 29, 2018)

Posted in Economics, Economics Nobel, Market Solutions, Markets, Monopoly, Noble Prize in Eco-nomics, Price, Technology on October 29, 2018 by e-commentary.org

. . .

J          “Bummer.  After all that time and thought.”

K          “And all that fun.  I tell you I realized that if it was going to be done and if it was going to be done right, I would have to do it to get it done right.”

J          “Been there.  Done that.”

. . .

K          “A construct such as the IS-LM model is largely malarkey but is heuristically valuable.  Today, the fundamental problem trying to describe and direct the operation and function of the economy is that there really is not an operating and functioning economy.  With all of the distortion, intervention and manipulation, price is not tied to anything real.  Every business, every single business in every single industry, is a monopoly.  The business is the industry; the industry is the business.  From pork to politics.”

J          “Yet only a few folks have discovered and understand that we cannot discover price.  Price discovery now is so passé.  Without price, we cannot communicate in the economic marketplace.  And the central bankers working alone and together destroyed the language of the marketplace.”

. . .

K          “He left Iowa with his father marketing the hogs to five potential buyers and returned to find that one buyer sets the price.”

J          “And both Senators from Iowa are Republicans.  You don’t have to ‘go figure’ when ‘it figures’ so clearly.”

. . .

J          “And the Swedish central bankers reward those individuals who provide the economic cover for the crimes and misdemeanors of all the central bankers by giving their ignoble ‘Nobel’ Prize in E-con-omics to the most successful errand boy or girl.”

K          “The Noble Prize in Eco-nomics is the part of the answer.”

. . .

J          “The most vexing monopoly is the government/corporate syndicate that precludes any competing alternative entity.”

K          “The twisted irony is that most industries, and all the major tech industries without exception, are basically ‘natural monopolies’ and thus ‘utilities’ such as the water company.  A utility is a monopoly.  A monopoly must be regulated.  Yet the tech companies/tech utilities own the government and quash any regulation.”

. . .

J          “The Republican political monopoly firmly supports the current economic monopolies who in turn own the Republican political monopoly.  The Death Spiral is spiraling but not changing.”

K          “In a fortnight, the slow boiling coup d’état by the Republicans could be completed by the Republicans.  If the Democrats do not take the House, the control of government will be concentrated in one mega-corporation – the Republican Party, Inc. / the Corporation, Inc.  The political ‘campaign’ is aptly namely for battle because the Democrats are charging east up Jenkins Hill trying to retake the southern flank of the Capitol and the House of Commons under intense enemy fire.  We need to hire the friends and fire the enemy.”

J          “The Presidency is a lock, the Judiciary is the stock and the Congress is the barrel.  Lock, stock and barrel.” 

K          “For the next two years at least, the Presidency is indeed a lock for the Republicans.  For the rest of our time on this Planet, the judiciary is a laughing stock and a wholly-owned subsidiary of the Republican Party, Inc. / the Corporation, Inc. doing their bidding.  And the Republican Congress has the ordinary citizen over a barrel.”

J          “Hook, line and sinker.  We are hooked, they have us firmly on the line and all of us are sunk.”

. . . 

[See the discussion in “This is Not a Market” in “The Automatic Earth” by Raul Ilargi Meijer dated April 23, 2018.]

[See the scary e-commentary last Halloween at “Are ‘Prices’ Language?  Are Antitrust Laws Grounded In The First Amendment?  How Do We Forestall The ‘Frightful Five’ And Other Monopolies. Oh, And Happy Halloween! (October 30, 2017)”.]

Bumper sticker of the week:

Free markets now!

Third Annual Noble Prize In Eco-nomics (October 8, 2018)

Posted in Awards / Incentives, Economics, Economics Nobel, Nobel Prize, Noble Prize, Noble Prize in Eco-nomics on October 8, 2018 by e-commentary.org

. . .

K          “An award dedicated to acknowledging and celebrating the work of someone on the planet who really knows something about eco-nomics.  Eco-nomics is about making and sharing; e-con-omics is about taking and stealing.”

J          “The Noble Prize in Eco-nomics is a delightful and playful replacement for the discredited and misnamed ‘Nobel’ Prize in Voodoo E-con-omics.  And I get it.  You get what you reward.  You need to reward what you want to get.  Who gets it this year?”

K          “The recipient of the third annual Noble Prize In Eco-nomics is . . . Ellen H. Brown who writes and speaks about money, banking, financial reform and the need for publicly run banks.  A lawyer and political candidate, Ms. Brown is the founder and president of the Public Banking Institute, a nonpartisan think tank researching and advocating for the creation of publicly run banks.  She has authored twelve books including Web of Debt and The Public Bank Solution, speaks regularly on these topics and crafts the “Web of Debt Blog.”  Her considerable corpus of work is undergirded by the conviction that eco-nomics should be concerned with pursuing the public good not just producing goods.”

. . .

J          “The ‘Nobel’ Prize in Voodoo E-con-omics is given by the Swedish Central Bank to someone who advances the interests of the central bankers or at least does not threaten them.  Their selections are not surprising.  Ellen Brown is number ‘n’ on the central bankers’ list of possible recipients.” 

K          “Bill Black is a co-number ‘n’ on the central bankers’ list of possible recipients.”  

. . .

K          “The Committee also examined and considered the pioneering work of Professors Mark Skidmore and Laurence  J. Kotlikoff who have contributed immensely and without enough credit to tracking and analyzing federal expenditures that are not on the books or part of the public discussion.”

. . .

[See the “Intergenerational Financial Obligations Reform Act” (INFORM Act), “Has Our Government Spent $21 Trillion Of Our Money Without Telling Us?” in “Forbes” by Laurence Kotlikoff and Mark Skidmore dated December 8, 2017 and “Heretics welcome!  Economics needs a new Reformation” in “The Guardian” by Larry Elliott dated December 17, 2017.]

[See the e-commentary at “Second Annual Noble Prize In Eco-nomics (October 9, 2017)”, “First Annual Noble Prize In Eco-nomics (October 10, 2016)”, “Announcing The First Annual Noble Prize In Eco-nomics (May 2, 2016)”, “Award Deadlines (Livelines?) (July 25, 2016)”, “From e-con-omics to eco-nomics? (August 1, 2011)”, and “Skip the Nobel in Economics (October 6, 2009)”.]

Bumper stickers of the week:

The life cycle of American business:  Engineers build, salespersons sell, hedge funders loot

When what is known as “e-con-omics” transitioned to “behavioral economics,” the undertaking should have been moved from the department of religion to the department of psychology.  The undisciplined discipline does not require its own department.

Boycott banks; support credit unions