Shock News from the Bank of England.
They admit that 'We are unlikely to spot next financial crisis'.
Dear Mr Carney,
Can I make three small suggestions that may help you with regards to your inability to understand and model the economy and society around you.
1. Hire Steve Keen
2. For a tiny fraction of your salary, hire his team at Kingston and have 'Minsky' up and running by next year (just in time for event above).
3. Read the bit in Minsky that says that an economics that cannot explain recurrent boom and bust is junk science, and/or jusk ask Keen to explain your 'barter illusion' to you.
Yours sincerely,
MW
Tuesday, 21 February 2017
Mr Carney to start with Airfix Spitfire and work his way up to Modelling the Economy (if James May helps him)
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12 comments:
I think he is working with them, Mike. I vaguely remember that he mentioned it in one of his recent videos but I can't remember which one.
Isn't the difference between modelling an Airfix Spitfire and modelling the economy the fact that the model of the Spitfire has to end up exactly like the real Spitfire, but the model of the economy can be made to end up how you want the economy to be?
Both Keen and Carney and his foul crew make the mistake that you both can, and need to, 'model the economy'. John James Cowpethwaite resisted any such modelling and Hong Kong grew exponentially. But at least Keen is right in his fundamental criticisms of Neo Classical economics and the hopeless ignorance of Carney annd his cronies.
Oh and , MikeW, Carney is, strictly speaking, on 'benefits'. You might point that out to him as well, while you're at it.
The problem with Economics is the capitalist work environment. They have to sell economic projections for their food and advancement; therefore they have to have ideas that those in charge (permanently) want to hear; not ideas that suggest everything they do is laughably dishonest.Therefore the brownnosing daisy chain.
What other modern intellectual discipline has the category of heresy?If Physics Chemistry and Engineering had discouraged innovation to the same extent we would be back wearing wigs and using quill pens, when ,ironically, the hot-shot political economists all meant land tax when discussing tax in its effect on an economy.
A possible 4th suggestion for Carney.
Since by your own admission you can't do your job properly, why not do a job you can do properly, like - er - sweeping the streets?
RM Hahahahahah. Yep. 'As a central banker you'd make an excellent street sweeper'. My thoughts exactly.
Quite frankly 'central banker' has replaced 'merchant banker' as the rhyming slang of choice.
DBCR Sentence (1). Cobblers. The rest, bang on.
@L Point taken. I was pressing the Send button when I thought how much more conformist a Socialist system could be.
Makes you wonder how an ostensibly "free" system such as that we are now suffering from could have generated such crippling pressures internally ,rather than via external intervention.
Cobblers is not a term of disparagement in Northampton (though evil capitalists ran off with a £9.5 million hand-out they we supposed to use to redevelop the football ground)
L. Honk Kong is really not such a poster boy for free markets. It's as much about cronyism as free markets, a kind of Faustian pact if you like. And didn't Cowpat' preside over the mother of all banking crashes in the 60's? In his defence he claimed to have been subject to intense lobbying by the big banks. It was ever thus.
DBCR. Cobblers = rubbish, not disparagement.
We haven't got a 'free' system as both you and I agree. The system is crony corporatism at the very best. And the banks, as we also agree, (and the landowners, obviously) are in a right old state, because of that cronyism.
The 'evil capitalists' running off with 9.5 mill were not 'capitalists'. They were thieves. You have to ask though, who was stupid enough to give them the money?
p156. Bank failures and crises are a Good Thing. One just must not allow oneself to be conned into bailing them out...
Oooo, look....https://en.wikipedia.org/wiki/Canton_Trust_and_Commercial_Bank
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