-- Posted Thursday, 16 October 2008 | Digg This Article | Source: GoldSeek.com
I was actually stunned to learn that the laughable Paul Krugman, another low-wattage PhD economist from Princeton University, won the Nobel Prize, and then I realized I was mostly just childishly jealous, especially about the part where he gets over a million smackeroos, and the news media uses a flattering picture of you, instead of the embarrassing one where I am on the ground getting gut-kicked by those damned nuns!
Apparently Princeton University has a penchant for embarrassing itself, too, as Ben Bernanke - current chairman of the Federal Reserve - is another Princeton alumnus, who was actually the erstwhile head of the economics department there, and who demonstrates his intelligence by presiding over, and making worse, the biggest economic calamity to hit the United States and the world in a century (maybe more!), thanks to his own lack of competence and his inability to understand that his predecessor at the Fed since 1987, the execrable Alan Greenspan, was a complete moron, too.
So Krugman won the Nobel Prize in economics? Hahaha! I make no secret of the fact that I consider him to be a loathsome commie weirdo lunatic who really has no idea what in the hell he is talking about, as I gathered from years and years of reading his mostly silly Leftist crap in the New York Times, wherein he was a constant cheerleader for all the "big government programs financed by the Federal Reserve's expansion of money and credit" crap that got us into the inflationary fix we are in, such as the communist idiocy of forcing banks to loan money to people who cannot pay it back (the infamous Community Reinvestment Act), forcing banks to nervously unload that toxic crap before it predictably went sour and gave the banks a loss.
This guy has now won a Nobel Prize, which is now just another award that used to have some prestige, but which is now - as the prizes to Al Gore and Krugman attest - just another filler blurb in the newspaper ("More Nobel Prizes awarded to miscellaneous friends of the Left").
And far Left he is, too, as he is quoted in the October 14 issue of the Wall Street Journal as saying that he is "an unabashed defender of the welfare state, which I regard as the most decent social arrangement yet devised." Wow! And people listen to this commie? Weird!
Since he is not here to defend himself, he has foolishly left himself open to my assertion that he does not have any real intelligence, as it is but child's play to mention that he could have read about, asked about, heard about or even suspected that such a stupidity as a "welfare state" is the worst thing that could possibly happen to country, as a mere glance at the world's history of welfare states shows that they are, without exception, highly inflationary and a recipe for disaster on a monumental scale. Just Like Now (JLN).
To be fair, he won the prize for some throwaway econometric work he did 30 years ago, where he apparently participated in jargon-laden crap known as "new trade theory" and "new economic geography", which I understand posits that nations end up trading a lot with other rich nations that use economies of scale, and thus have low prices, instead of the rich nations using all their money to buy basic commodities and poorly-made-yet-expensive consumer products by trading with poor nations that cannot compete at such economies of scale.
And to top it off, the whole thing is nothing new at all! Hell, the Financial Times described it as "Mr. Krugman's ideas on the [importance] of economies of scale could be traced back to Adam Smith, but the new ingredient was a usable mathematical description of what was going on"! Hahahaha! A couple of hundred years!
Anyway, you can see how this is just what the world needs; another stupid mathematical equation by an idiot-savant that purports to describe some direct linkage of universal economic laws, but which only works part of the time, if that.
Unfortunately, although the entire economic system of the world has now been destroyed by this very same kind of equation-laden claptrap, he wins a Nobel Prize for more of it! Hahaha!
But perhaps Lew Rockwell at LewRockwell.com has it exactly right when he talks about, as I see it, the Left extorting more money for the government to extend the welfare state, they are taking advantage of "the perfect storm: the big banks loot us through government, while the academic economists approve it as applied science."
Let's turn, now, to the Big Mogambo Book Of Economics Stuff (BMBOES), where we read that the term "applied science" in the field of economics is defined as "bankrupting yourself, your family, your friends, your neighbors and the whole freaking country by relying on something so stupid as equations that purport to describe economics, which is so stupid that it makes me laugh in scorn and derision, and it would you, too, if you had bothered to read Talib's The Black Swan, which proves that improbable, unforeseen outlier events will ALWAYS overwhelm any such system, producing catastrophic losses! Hahaha!"
The BMBOES entry is ended with, "See: Systems to beat games of chance in Las Vegas; avoiding lawsuits in Las Vegas (paternity, other); betting big money against low probabilities at seemingly 'correct' odds over the long term as a test for stupidity. See als defending the decision to not buy gold and silver in the face of rampant monetary expansion with a defense of 'legally insane' and/or 'legally stupid.'"
But better, much better, to buy gold and silver now, and thus remove all doubt, make a profit, and finally eliminate those pesky lawsuits! Whee! This investing stuff is easy!
P.S. To get The Daily Reckoning sent directly to your inbox, sign up for our free email newsletter, or if you prefer to use RSS, subscribe to the Daily Reckoning RSS feed.
Editor's Note: Richard Daughty is general partner and COO for Smith Consultant Group, serving the financial and medical communities, and the editor of The Mogambo Guru economic newsletter - an avocational exercise to heap disrespect on those who desperately deserve it.
The Mogambo Guru is quoted frequently in Barron's, The Daily Reckoning and other fine publications. Click here to visit the Mogambo archive page.
-- Posted Thursday, 16 October 2008 | Digg This Article | Source: GoldSeek.com