Tuesday, February 22, 2011

Economic Pseudo Science

The global food riots will get worse before they get better.  Even though Bernanke said he would rates if he had to, and he has to, he will not.  There is a direct disconnect between economists and their policies.  The theory goes that food prices are highly volatile, thus why they are not a component of CPI.  So basically Bernanke will not do anything to stop the run away inflation until it is too late.

The blind lead the blind in economics, as anyone who studies the psuedo science using neo Keynesian rhetoric has no sound theory.  After supply/demand the psuedo science falls off into theory based on fiat money, slave labour and numerous other atrocities to the society we have created.  This is very dangerous.

There really is no way to grab the control out of Keynesians hands other than to stand up and walk out on them.  Monetary policy is strictly influencing politicians and business people a like.  The game has gone their way so far, and they are too short sighted to see the on coming train of reality.  It is thundering along the tracks, and it will not be long until it demolishes those standing in its way.

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