The economic high priest of the country

Robert Murphy made me aware that the Keynesian economic forecasting is lagging some 12-15 months . National Bureau of Economic Research (NBER) last monday, 15 months late, announced that the recession ended in july 2009 . Similarely NBER detected the recession 12 months later in 2008. So even if you believe the money wizards know how to stear the economy it is evident that they are steering looking in the mirror.

Arch Keynesian Ola Storeng in Aftenposten has to the point comment on the non scientific religious aspects of the activities of the Central Bank calling the CEO of the central Bank the “economic high priest of the country

Here is the background for the decision. A lot of very different data’s mingled together and the result is somehow 2%. Amen! In my vocabularily interest is the mutually agreed fee for lending an amount of money a period of time. How are the wizards going to decide that for all of us? Give me a break!

I half listened to the press conferende following the announcement of the decisions. There is a lot of Keynesian nonsens:

  • They are talking about overcapacity. They are telling us that we have to much means of production. The keynesians are telling us we are poor because we are rich! (The correct analyses is that there are malinvestments because of the Central Bank led credit expansion)
  • Norges bank is steering towards a rice in the prices of 2,5%. Magic. Why not 1,5% or 3,5%? Why not let the economy manage itself and let the prices fall slightly because of economic improvement?
  • They see private consumtion as dragging the economy. This is keynesian bulshit. Consumtion is the destruction of wealth. It makes you poorer. All sensible peoples know that they get poorer if they spend away their money. Only brain dead keynesians belive it makes you rich.
  • One of the journalists is fearing av devaluation race. Also the american governemnts mercantilist economists are complaining the yuan is to low. The purpose of trade is to exchange your goods for as much other goods as possible. This means it is benificial to keep your currency as strong as possible. The keynesian economic inside out upside down ignorants wants to get as little goods as possible in return for our exports.

Tips oss hvis dette innlegget er upassende

Filed under: on September 23, 2010 at 11:08 pm Comments Off

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