Economy-watchers are beginning to understand that most economists failed to understand or predict the global economic crisis, and should therefore be deposed.

For economics nerds like me the last week has been riveting. Paul Krugman, a Nobel-prizewinning member of the economics establishment, has been debating with Steve Keen, a radical who’s long argued that the conventional economics taught in universities is woefully unrealistic because it ignores important features of the real world like uncertainty, the role of banks, debt and how money is created.

12 comments on “Economy-watchers are beginning to understand that most economists failed to understand or predict the global economic crisis, and should therefore be deposed.
  1. aaah says:

    Universities also fail to connect economics & tribal warfare.
    Here’s Kubrick’s great metaphor….
    In the beginning of ’2001, A Space Odyssey’
    2 tribes of apes meet at the local waterhole.
    Most of the time they just grunted, squealed and
    flapped their arms. (Like CNN & Rush Limbaugh.)
    (Back then in reality there was some feces bombing
    by the apes but Kubrick couldn’t show it due to censors.)
    Advanced aliens plant a monolith near where one tribe sleeps
    and the vibrational resonance tweaks their DNA to modify & upgrade
    their evolution. The next day the Alpha ape discovers the technology
    inherent in a bone/tool but due to being an ignorant ape who cannot
    control his mind and emotions he goes apeshiite.
    He brings it to the next waterhole encounter between
    the two tribes and clocks the other Alpa male to death.
    Fast forward to today- the apes are screaching over
    pools of oil, financial assets and commodities.
    The animal-level prison of ape tribal warfare ad nauseum continues.
    If those apes transcended tribal warfare but were still territorial
    and competitive about their resources how would they behave?
    That’s the Silver Liberation Army solution, my friends!
    Instead of tribal warfare you take your share of the metaphorical
    spring of elixers -in this case silver – with you thus defeating and
    transcending the animal -level behavior of ape-ish tribal warfare.
    2 choices -tribal warfare or stackin silver as the innovations keep coming
    to help us eventually transcend the global tribal warfare kindergarten-level
    ape-brained paradigm.
    When the bankers throw you a bone use their skulls instead as a bowl
    and fill your skull bowl with silver. The 2001 Kubrick ape should have
    taught his own tribe and the other tribe to scoop water from the waterhole
    with skull bowls and bring it home. Plenty for everyone no need for the
    mental poverty of greed.

  2. Flopot says:

    Aye, most economists spread the bulls**t of the neoclassical and neoliberal ideologies. I was gonna call them dark priests but they are more like deluded groupies.

  3. Flopot says:

    …or deluded cult members. Maybe that was the analogy I was grasping for. Anyway, they are all destructive f**kers, the cynical variety and the true believers.

    Remember that economist on “Inside Job” who was shown to have slyly changed the title of his Icelandic financial study that he quoted in his CV! He was squirming in front of the cameras. Cynical rat type of economist.

  4. Alf says:

    @aaah…Like the Kubrik analogy, it also makes a lot sense.

    …”Plenty for everyone no need for the mental poverty of greed.”
    …Amen to that.

  5. Kevin Eshbach says:

    The established academics are out of touch. No big surprise there for me personally. I found when I was in college in the early 90′s for computer science the professors were out of touch with the real world and only regurgiated what was written in a text book. (Basically it was a continuation of the public education system where everybody was only obsessed with test scores.)

  6. Danny Cunnington says:

    This is true right across academia. It was all hi-jacked decades ago. It’s the reason we are still using an outdated fuel source based on oil. The fire culture should have ended by around the 1930s. Countless people have developed new energy sources, cures for serious diseases and all manner of things only to be falsely debunked by ivory tower idiots and demonised by the media.

    The next shoe to drop is the realisation that these so-called experts have retarded human progress and this in itself is really a crime against humanity and human progress. Cancer has been cured in multiple ways starting in the 1920s. How many people since have died needlessly so that some monopoly can profit from death, pain and misery? If non polluting super cheap energy was available to all creating a level playing field for free trade and enterprise why would anybody want to go to war?

    If so-called economists actually knew their subject properly then there wouldn’t have been a credit crisis but here it is causing mayhem and destruction to hard working and productive people. As for “nobody saw it coming”, it was spotted by multiple people with many entire books predicting it nearly exactly as early as 2002 and by 2005 it was a near certainty to anyone paying attention who hadn’t been duped by establishment media lies.

    What did the brigade of experts who didn’t see it coming do then? They declared a recovery and “green shoots”. Of course it fell apart again as nothing had been fixed. Now they are at it again claiming the US is in a recovery. Only a complete imbecile can believe anything these charlatan claim at this late stage.

  7. Flopot says:

    Problem is that these charlatans are running rough shod over society. They have infected every corner of human activity, even language itself. Freedom is Greed. Money is Speech.

    I hope their leering from the pinnacles of power is hubris and represents pride before the fall.

  8. JonnyJames says:

    I agree with y’all. Economics and Politics departments at most Universities in the US (and copy-cat sycophants abroad) are staffed with sycophantic groopthinking hidebound ideologues who have no real interest in science or genuine rigorous academic practices.
    Of course they bandy abound “rational choice” theories with some fancy mathematical mumbo jumbo. They cloak their irrational ridiculous claims and assumptions in mathematics and then claim it is like the laws of physics. Even Physics evolves, but neoclassical ideology does not. Some fancy eqations can’t paper over the absurd and irrational assumptions their theoretical model is built on.

    One does not even have to get into the nitty gritty here: Keen has been recognized by Forbes, an academic study done by Dutch economist Dirk Bezemer and others, as being one of the most accurate economists in predicting and recognizing the economic “crises” we are facing (along with Prof. Hudson). Krugman, on the other hand, failed and continues to adhere to this absurd and destructive ideology.

    Who benefits from neoclassical ideology? (rhetorical question). Of course the interests who benefit will attempt to insure NO alternative discourse or narrative sneak into the ideological propaganda. That is why folks like Krugman have a column in the propaganda of record the NYT. That’s why Bernanke and Greenspan were Fed chiefs, that’s why the Econ. depts are stuffed with ideologues and propaganda pushers.

  9. Citizen119 says:

    Where does Keen get this bullshit about UK mortgages being 2-3%? Dream on.
    New mortgages are generally more than double that, even though the
    bank rate is 0.5%.

    The banksters might entice you in with a low offer, but it won’t last long.
    UK borrowing for mortgages and credit cards is in the range 7-30%, so he can
    stop spreading the nonsense about cheap money here.

  10. Dark Markets says:

    finally we are getting somewhere…?? No, sigh, not yet.
    As a small businessman (in construction), I went back to college, KNOWING that EVERY CENT must be (or should be) accounted for. EVERY cent I took in, was either expenses, or profit. (taxes due on the later – and taxes & insurance due on ever dime of labor costs as well.) Yet I quickly found (in my upper level finance courses) that they are EXTREMELY UNCOMFORTABLE talking or dealing with THE MONEY SUPPLY.
    They will tell you all about “MONEY VELOCITY” but they HATE discussing how the Money Supply goes from (say) $2 Trillion in 1970, to $20 Trillion in 1999.
    Well, we “PM bugs” KNOW that it is THE FED which is PRINTING (electronically) the money…. NO, it does NOT “mysteriously grow, like fungus, from some magic cave deep in the money velocity stream.”
    Trying to discuss economics without FIRST addressing MONEY SUPPLY, is like trying to plan & account for the family budget… with NO IDEA HOW MUCH MONEY IS COMING IN.

    This above is a BAIT & SWITCH FRAUD perpetrated by the Rothschilds and all their descendent PRIVATIZED central bankers. And Krugman is a lead toady in the “Emperor’s New Clothes look Wonderful!” retinue… he is NO “liberal”, he is a FUNCTIONARY, an appartchik, of the Fed VERY PRIVATE (hyper-wealthy) predatory/parasitic banksters…

  11. Robert Mockan says:

    @ Dark Markets

    Absolutely correct. Even a child receiving an allowance understands the concept and importance of money supply relative to money velocity, as does any family or company doing real world budget balancing.

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