Q: Larry Summers, interviewed on Bloomberg this week, opined that the reason government economist where unable to predict any of the recessions since WWII was that: the economy is too complex to predict and making such a predation would contribute to pessimism and so might be self-fulfilling. How do you explain their incompetence?
A: I do not think that they are incompetent, unlearned or dumb. They are doing their job exactly as they are being paid to do it.
Q: I do not follow. Please explain.
A: This is an important issue and deserves close attention. Government economists are part of the 97% that put out propaganda deliberately designed to mislead. They perform the same function as the priesthood did during the middle ages in Europe. Their function is to keep the peasants on the land working for the nobility. If you read the text of the Magna Carta on public display at the British Museum of History, it will be clear to you. The exact words of the text say: God created the earth; J C was the only begotten son of God; Peter was the agent of J C; the Pope is Peter’s agent; the Pope gave the British Isles to the King in return for loyalty to the Pope; the King gave the land to the noblemen in return for loyalty; and the noblemen gave the use of the land to the peasants in return loyalty including payment of taxes, military service etc. Therefore the peasants must do as the nobility order because they rule by the legitimacy of divine right from God.
The economists know they are being paid to lie. They know their function is to fool the sheep. Keep them coming to be shorn without rebellion. They know that they are being paid many times more than any job they might be qualified for in a free market. Most of the intellectual class plays a similar role. The recent Paris accord promises to pay the global warming academicians 100b per year for their studies. Next time you hear an economist mention full employment, the general welfare etc. Think divine right of kings.
Q: Very interesting historical presentation but how does this help in my trading gold mining shares?
A: If you start off with an erroneous premise, your conclusion will be faulty. Government economists are not stupid. They understand for what they are being paid. They serve the interests of the parasites that control the instruments of government. Expecting the opposite of what they say to be true is the safe play. This will get you to at least one step closer to the truth. Knowing what the truth is may be 97% of what you need to win.
Market Commentary (above) by Arthur Fixed
[box type=”info” style=”rounded” border=”full”]Commentary from Arthur Fixed the author of the Art of Speculation during Civil War – Sun Tzu Meets Jesse Livermore is a private manuscript copyrighted 2012 by Art Fixed.[/box]
Photo credit: Thomas Hawk via Visual hunt / CC BY-NC
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