There is no recovery, regardless of what the elite and their minions in the media want you to believe. The economy is sick. It was made so by the malpractice of government and will become even weaker as government continues to administer the poison that got us to this point. The political class’s version of remedy is akin to the medical profession’s practice of bloodletting. Neither does any good and both, carried to extreme, are fatal. [Let me explain more fully.] Words: 548
So writes “Monty Pelerin” (www.EconomicNoise.com) in edited excerpts from his original article entitled Hippocrates Was Not An Economist.
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Pelerin goes on to say in further edited excerpts:
The continuing optimism reported regarding an economic recovery does not seen credible in light of what has happened and where we are today. [After all,] you don’t have to be too old to remember when 5 – 6% quarterly growth characterized recoveries.
The medical profession, grounded in science and constrained by the Hippocratic Oath, recognized the fallacies in their bloodletting remedy and abandoned it. The economics profession deserves a great deal of shame for their participation in the economic fraud that has been perpetuated on the country, but politicians are the true problem. Economists do not make policy. They can suggest it, but that is all.
Politicians select and implement economic policy. Sadly, they do so more for political rather than economic reasons. As in most professions, the economics profession is not short of their share of prostitutes and/or incompetents. These people are willing to recommend and support policies when it is in their best interest to do so. Government makes sure that is the case and integrity is compromised for monetary or other non-pecuniary rewards.
The gap between political claims and reality is getting uncomfortably wide. To pretend, the political class increasingly is forced to strain credibility. Simon Black points out one of the many discrepancies between political claims and reality:
“According to ADP data, the number of people employed in the United States today (111 million) is roughly the same as in 2001. Yet back then, there were about 285 million people in the US. Today there are 315 million people so the conclusion is that there has been no growth in the number of jobs, far more people in the country, and far fewer of them ‘participating’ in the work force. This can hardly be called progress.”
These contradictions between reality and political claims are everywhere, yet politicians continue to speak of a recovery while their public relations arm (the media) continues to accept and buttress their claims. They cannot admit the damage they have done, so this course is their only option.
Sadly, the economics profession does not have the equivalent of a Hippocratic Oath. Even then, perhaps its members are not strong enough to be intellectually honest. Integrity in the face of government bribery or threats is easy to lose – especially for a profession that prides itself on understanding self interest.
The political class has backed itself into a corner. They have convinced the public that bloodletting is effective. Stopping now and admitting its failure is unlikely because of the political backlash that would ensue. Thus they will not stop until markets stop them. Bloodletting will continue until the economy dies and is recognized in a deep Depression.
[Editor’s Note: The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]
Politicians foolishly believe they can bend the laws of nature. They are fools for trying. Sadly, the pain and suffering that will be incurred will be borne by the millions of citizens dependent on markets and the economy. The economy cannot recover without a complete cleansing of the excesses that have built up over the last half century plus. [This article spells out why that is the case.] Words: 710
We have been hearing a lot about escaping the fiscal cliff, but our problem isn’t solved. The fixes to date have been partial and temporary. There are many painful decisions ahead. Based on recent research and my analysis of the situation, civilization is in the early stage of the Crisis phase (state breakdown) and the U.S. will most likely enter a severe recession by the end of 2013. [Below is my rationale.] Words: 2979; Charts: 8
If you are clearly watching, listening and paying attention to what is going on around you, and not what the press ‘conjures up’ and the political apparatus ‘spins’, then the following lessons, in the following sequence, should resonate with you. [Unfortunately, however,] the captains of world monetary policy have not and, as such, they have put the world on a course that history has warned us against [and we will eventually pay the price of their ignorance and ineptitude. Take a look. These words of wisdom (lessons) are as timely today as when first spoken/written.] Words: 865
To any sane person who has a grasp of what is presently occurring, it is obvious that the current state of affairs is unsustainable. The question is how long can the monetary captains’ misguided policies keep us off the shoals of our economic destruction. How long can policies of “extend and pretend”, “kick the can down the road” or “fake it until you make it” continue? The answer is unknowable but…when something is UNSUSTAINABLE it is INEVITABLE that it will END. TIME is the only unknown. The certainty of it ending BADLY is not. Words: 1265; Charts: 6
Like health, freedom erodes gradually over time… then all at once. We lose a freedom here, there, through a slow, measured deterioration of civil and economic liberty: body scanners at the airport; declarations of foreign accounts; mandatory health insurance and then, suddenly, there’s a bifurcation point when the deterioration goes nonlinear. It’s like the old saying about going broke– it happens gradually, then all at once. We lose our freedoms in the same way. [That is already happening in Argentina where the government is] screwing everyone, big time: banks, businesses, workers, retirees, professionals, entrepreneurs, even government employees and the U.S. is starting to go down this road as well. [Let me explain.] Words: 625
Those dependent on the welfare state are unaware that their benefits are not sustainable. Most believe tomorrow will be like today and the checks will keep coming from Mother Government. Political power was gained based on promising these benefits. No politician will risk his position by trying to reduce them. No democratic society has ever rolled them back via peaceful political means. [At worst,] the economy and society could end up in ashes [and, at best,] the world is in for a long period of stagnation, retrogression and conflict. [Let me explain more fully.] Words: 1115