"The failure of the central bankers and economists to 'manage the economy' is nothing new. One only has to look at the mainstream economic 'forecasts' in 1929 and 1930 to realize that not only is economics not a precise science, but too often economists are nothing more than mouthpieces for vested interests, and dabbling in politics and public policy in the guise of science.
A new school of economics will likely rise out of the coming financial collapse of the US, as it did in the 1930s. Perhaps this one will be more scientific, less subservient to private business interests and political objectives.
But until that time it is good to realize that much of the discussion of macro-economics is nothing more than public policy and personal philosophy, with a strong dose of financial bias.
For the sake of our country, we need to stop the Fed from increasing its opaque power to regulate and control our economy. They have made a botched job of it, and show no signs of improvement beyond serving the needs of their special interests and the wealthy elite.
Jesse, Economics in Disrepute as the Economy Tumbles, 9 July 2008
"How can a society which defines its first principle, the ultimate good, as greed be anything but what it is? Cruel, self-absorbed, shallow, unjust, delusional and imbalanced. Fear is the tool of a tyranny, and greed is a horse to be harnessed, not the measure of policy or an administrator of justice to run maximized, or even unchecked.
Why the lack of self-recrimination among the economists? Because they are no different than anyone else who failed to exercise their stewardship and basic human obligation to protect the innocent and to stand for justice, and uphold the standards of their profession. In this they are no different than politicians and lawyers and accountants and the mainstream media, although we foolishly expected more."
Jesse, In Defense of Economics, 12 January 2009
Nothing will change while the system continues to reward malfeasance and faisl to stop pervasive corruption by a self-serving elite.
This is the oft-cited credibility trap.
Stocks slumped this morning, but managed to come back to almost unchanged after Europe went home to bed.
Gold was mostly unchanged along with the Dollar.
Silver lost a little ground along with stocks.
The VIX was higher.
There will be a Non-Farm Payrolls report on Friday.
Have a pleasant evening.
