This weekend we include "part two" in our academic interlude. We hope to continue these more intellectual discussions as time permits over the upcoming weekends.
We have already stated that November will be far different than October or September, as we expect cyclical changes will come later in the month. We will be back again tomorrow with regular updates as time permits. Enjoy.
We have already stated that November will be far different than October or September, as we expect cyclical changes will come later in the month. We will be back again tomorrow with regular updates as time permits. Enjoy.
Man – The Invader and Coy Interventionist for Profit
No matter how our human species originated, one thing is clear, Mans existence on our precious planet Earth is jointly shared with an infinite number of Earth’s delicate systems and resources. Hence, one could observe a duality of purpose and interaction; one part mother Earth, and one part human.
At first glance, the vastly infinite intricate interactions between the two might appear to be inconsequential. But what happens when Man interacts or upsets a system balance beyond a tipping point? Do we simply ignore the side effects or do we even notice them? What happens when money and profit is involved?
Some of our planets systems being used everyday are closed-end, such as the finite carbon based fossil fuel supply. Other’s such as forests are semi-renewal, while some of our planets assets appear almost open ended, such as water being replenished with rain.
The impact between Man and Mother Nature and her cycles, and her resources can be described and studied using the sciences, but generally, empirical evidence and all science begins with man’s sense of gaining information and awareness by observation.
Money is a powerful motivator and the root of capitalism.
It is also the universal form of exchange created by a competitive Man living in organized Nations for the barter and exchange of resources. Unless one is of arrogant rare wealth, all humans, academics, and sovereign Nations agree that money too is thus scarce, of value, and for efficiency should flow freely and even be shared.
But has Man a hidden agenda? Has Man's ego, power and competitive nature to control scarce resources gone too far?
It is fact that, one of the most broadly accepted academic definitions of Economics - is the study of scarce resources. In this feature we will briefly look at Keynesian Economics and some of the consequences.
So our question posed herein; is what happens when Man believes he can trick or outwit his fellow humans as well as nature (and the business cycle of expansion and recession), and thus potentially impact the many intertwined interdependent balances when he decides to manipulate money for some tactical advantage.
Keynes perhaps more than any man, changed economic history in 1936 with his theories as published in “The General Theory of Employment, Interest and Money.”
Keynes detailed emphatically, that key relationships exist in whole economies and between individuals and businesses. In our modern age, Keynesian economists routinely interpret, correlate, and extrapolate a multitude of data sets.
Although in a short blog, it is impossible to entertain a detailed Keynesian debate, the notion is that a better insight of Keynes and intervention economics will aid in understanding the mindset of Ben Bernanke, the FED and Central Banks everywhere, whose aim is to manipulate and interact with business cycles for some advantage.
We thus recommend investors and those whom enjoy such academia, especially read chapter twelve (The General Theory - Keynes) regarding long term economic expectations.
Here are a few brief quotes from Chapter 12 for brief insight
1. Or, to change the metaphor slightly, professional investment may be likened to those newspaper competitions in which the competitors have to pick out the six prettiest faces from a hundred photographs. The prize is awarded to the competitor whose choice most nearly corresponds to the average preferences of the competitors as a whole; so that each competitor has to pick, not those faces which he himself finds prettiest, but rather those which he thinks likeliest to catch the fancy of the other competitors, all of whom are looking at the problem from the same point of view.
2. This is another way of saying that, when he purchases an investment, the American is attaching his hopes, not so much to its prospective yield, as to a favorable change in the conventional basic of valuation. That is, in the above sense, he is a speculator.
3. A collapse in the price of equities, which has disastrous reactions on the marginal efficiency of capital, may have been due to either a weakening of the speculative confidence or a weakening of the state of credit.
4. Thus we must also take account of the other facet of the state of confidence, namely, the confidence of the lending institutions towards those who seek to borrow from them; sometimes described as – the state of credit.
Keynes was without any doubt of immense genius. He had a brilliant insight into humanity in abundance, and he possessed a depth of understanding into social-psychological-monetary workings that are rare.
However, we are not sure that his teachings and ideas have been used ethically, correctly, or implemented as he intended.
As you read and learn more about Keynes and Keynesian economics, if you are like many, you may increasingly believe that it has falsely become a school of economics, whereby whitewashing the truth to a population (brainwashing the citizens of a nation via government statistics and propaganda to exert control over confidence and credit) is freely endorsed via intentionally intervening in society’s affairs.
Worse, it is being done under the false assumption that educated men called economists know more than the unintelligent investor, speculator or worker, or citizen - whose capital should be accessed for economic and society’s purposes (profit).
Frankly, we say such intervention-like economics of any kind, and equally the economists who practice such thinking get too much credit, know far less than what is popularly believed, use a considerable amount of flawed, limited or manipulated data, and extrapolate and correlate data in ways they were not designed for, and most important, are interpreted in methods and ways that could be procedurally and systemically flawed.
When economics is used in a convoluted way, as Keynes often implies, it is much like ordering a worker (society - the training a mule) to give up complete control over their life and savings, and to hand over all of their income and productivity for life, for use by the state and bankers.
This is not free enterprise, a freely traded market or commodity, the study of a scare resource, or even capitalism. Rather, it is a hidden agenda of control and manipulation by government economists and their fellow bankers under the auspices of capitalism. Further, it suggests strong evidence of a premeditated and obvious ongoing merger between state and corporate power.
If propagation of this act is to succeed indefinitely, the trained Keynesian action an economist must place above all else is the maintenance of credit and confidence to maintain investment flow. As Keynes points outs – if you take away either – the convention or notion of economics immediately fails.
This is what gives the economist and the state, the mechanism of control (for profit) over the money of others.
Sadly, this school of economic control and intervention completely fails to recognize the potential for highly serious side effects of monetary manipulation and intervention (for every action there is an equal and opposite reaction), as it equally fail to predict what could or might happen when economic escalation develops between competitive men within Nations, as they manipulate to elevate or control money for a selfish benefit.
Last, such an economic intervention attempt to control or manipulate for profit, forgets about the free will and stubborn nature of Man, or the freedom that humanity in groups should possess, and is more ethically and honestly owed.
Coming Next Weekend Laissez-Faire Economics
Sincerely,
James Kelly Sr.,
Editor in Chief, BBTL Blog
www.KRTT.com
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