Keynesian Magic and Wizardry

Discussion in 'Politics' started by Tsing Tao, Jun 11, 2012.

  1. Tsing Tao

    Tsing Tao

    A good article by Mish:

    Modern Day Fairy Tale of 3 Economic Wizards (Except It's True)

    Once upon a time (today), in a land not so far away (USA), there lived a trio of economic wizards (economists), whose names shall remain anonymous (Paul Krugman, Greg Mankiw, Ben Bernanke).

    A fourth wizard, Murry Rothbard, is no longer among the living but resides in the netherworld.

    The above wizards seldom agree with each other because they come from competing schools of wizardry.

    Three Schools of Economic Wizardry

    Keynesian School of Fiscal Voodoo and Witchcraft
    Monetarist School of Monetary Voodoo and Witchcraft
    Austrian School of Sound Money, Sound Economic Principles and Common Sense.

    "Dark Arts" Wizardry

    The first two wizardry schools belong to a class of wizardry promoted to aspiring wizards as the "Dark Arts".

    Philosophical Beliefs

    Keynesian wizards believe governments can spend their way to economic health and although fiscal deficits may matter at some point in time, they never matter now, in practice.
    Monetarist wizards believe money will cure any and every problem if enough is dropped from helicopters and interest rates held low.
    Austrian wizards believe that economic problems are created by unsound money, haphazard loans, excessive debts, and government manipulations.
    Keynesian and Monetarist wizards believe in the voodoo principle "the problem is the solution if only you do more of it". The former relies primarily on fiscal voodoo, the latter relies primarily on monetary voodoo.
    Austrian wizards do not believe "the problem is the solution", no matter how many times it is repeated.

    Grand Poobahs

    Paul Krugman is the economic "Grand Poobah" of the Keynesian wizards.
    The "Grand Poobah" of Monetarist Voodoo is Fed chairman Ben Bernanke.
    Murray Rothbard, no longer alive, was the last great proponent of school of Sound Money, Sound Economic Principles, and Common Sense.

    (Read the rest at the link)
  2. Ricter


    Not worth reading past this.
  3. What happened to wave C or D or whatever crash that was supposed to happen when the S&P500 was at 800 back in '09? He stopped writing about the market as it went higher and went on to bash the public sector because his private sector was dumb enough to give up their pensions many moons ago for the 401k. What, WHAT?! Market don't go up every year???
  4. Tsing Tao

    Tsing Tao

    Probably not, because you're way out of your league in trying to refute most of it. So if I were you, I'd terminate reading at the first sentence, too.
  5. Tsing Tao

    Tsing Tao

    I'm not exactly sure what it is you're referring to (Wave C or D), so it's difficult for me to respond to your question.

    Why not debate the article? Or, if your aim is to discredit the writer in some regard (which is what it appears) because that is easier for you to do, post a link of some article you're talking about in which Shedlock went off the deep end or something and we can discuss that one.
  6. Ricter


    "if your aim is to discredit the writer in some regard (which is what it appears) because that is easier for you to do,"
  7. Tsing Tao

    Tsing Tao

    Wait, wait...let me guess. This is

  8. Ricter


    You're the one who wrote it, which is why I put it in quotes.
  9. Tsing Tao

    Tsing Tao

    Yes, and I know what I said. What in hell are you trying to say? Out with it, man.

    Are you saying I should try to debate your "not worth reading past this"? You've given me nothing to discuss with you. You refuse to read the article.
  10. Tsing Tao

    Tsing Tao

    And the crowd yells "ole'!"

    #10     Jun 11, 2012