Thursday, September 16, 2010

Damon Vrabel - Harvard Lobotomies and the Disgrace of the Economics Profession

Once again Damon takes pot shots at ivy league economists. Unfortunately for our nation, it’s kind of like shooting fish in a barrel (and Damon’s a good shot)!

Harvard Lobotomies and the Disgrace of the Economics Profession

By Damon Vrabel

It’s worth stepping back on occasion to consider the progress that has been witnessed in particular academic fields. Astronomy took a giant step forward centuries ago when it finally realized the sun was at the center of the solar system. Geology adapted to the fact of a round earth. The continuous evolution of Physics boggles the mind.

Engineering perpetually pushes into new frontiers.


And how does Economics compare?


Well let me take a moment to congratulate the few Harvard, LSE, Princeton, Chicago, MIT grads serving Wall Street, the Fed primary dealer cartel, the IMF, and the World Bank (and Larry Summers deserves extra credit). These economists drive the field, and they’ve brought it to a point that has taken us back to the days of medieval feudalism. The field is now more primitive than flat-earth Geology and Ptolemaic Astronomy. Congratulations economists!


Of course it’s not entirely the economists’ fault. They were taught from day one in Economics 101 that they will undergo a moral lobotomy. Neoclassical Economics goes to great lengths to indoctrinate new recruits that it’s a positive vs. normative “science.” Other sciences don’t bother to do that because the fact is there should be no conflict between the positive and the normative. Why is Economics the only field that does this? Because it wants to avoid the questions that good students interested in true progress would otherwise ask. It knows it’s hiding something in its content that conflicts with the normative and it doesn’t want students to search for and find the truth. Just remember this helpful indicator in your next life–anything that goes to such lengths to admit upfront that it’s morally bankrupt might be something around which you should NOT build your life!


The truth is that modern Economics has been designed to completely hide the monetary system that hovers above the economy. It assumes money is just a medium of exchange floating through the economy to facilitate a free market and generate wealth. At times that has been true, but today it’s probably the biggest lie of modern history. The current system does not generate wealth and freedom for most people. It generates debt and servitude. And it is not a free market. Today’s money flows from a top-down imperial power system expanding globally. It creates a master-servant relationship because all money comes from privately held debt.

Let me say that again. ALL MONEY COMES FROM DEBT (for those of us who suffered the most indoctrination by attending schools like Harvard, let’s pause here for a moment so we can catch up to the rest of the class). This means in order for governments, businesses, and people to have the liquidity necessary to live, they must agree to sign over a claim on their assets to banks. As the banking system inflates over time passing out credit, which makes everyone feel good with more digits in their accounts, it gathers claims on all the assets in the system for its private capital holders. Admittedly, this is one way of facilitating development (good students would’ve figured out a better way had they not been stifled). But it’s also the method for transferring everyone else’s assets to the balance sheets of the capital holders behind the banks once deflation sets in.

This is what we’re facing today. The global banking system has a claim on most assets in the world (except those in places like Iran, so it’s no surprise the military is gearing up to conquer the region for Wall Street and its Harvard employees…like JP Morgan Chase moving in on the mineral assets seized in Afghanistan because it’s a primary bank that pays the military-industrial complex to conquer territory for it).

Once the system has gathered all the claims it wants, senior capital will be removed, kicking off the next phase of deflation and a transfer of assets from the people to the banks. At that point we’ll probably see JPM Chase CEO Jamie Dimon, another Harvard lobotomy victim (there’s a high correlation between Ivy League lobotomies and billionaires), on CNBC threatening Americans to pay up as his firm jacks up their rates and takes their homes like he did in early 2009.

In this transfer process, the people’s equity will be eliminated. And this means, they will be returned to the life of a feudal servant to the capital holders behind the banks. This is not rhetoric, but the unarguable math and accounting of the banking system. It’s very simply a mechanism to transfer assets/equity from the balance sheets of the many to the balance sheets of the few.

So a final word for all the top economists out there:

Congrats again! It didn’t take much to buy you off. Today’s financial elite who control the global debt machine have rewarded you with paychecks and the status of the high priests of old. Sad. Do you have any pride, or is it really that easy to co-opt you with retreats in Jackson Hole, hobnobbing in Davos, and membership in the CFR?
Come on. Rise above it. You are obligated to fix this immediately:

1) Develop an interim solution in concert with the old time-tested bondage/jubilee, growth/rest cycles which gave the people, communities, land a breath of fresh air in the midst of empire growth. (if you’re writing that off as religious romanticism, ask yourself what top athlete doesn’t live by training/rest cycles…over-training results in deterioration, not progress)

2) Then develop and advocate a humane money system that facilitates the rebuilding of real community as opposed to one based on debt servitude that parasitically sucks the life OUT of communities.

We know the debt holders have a lock on Harvard and LSE (my days at Harvard were marked by professors preaching the greatness of Enron finance and Wall Street derivatives, so most Harvard grads are probably beyond recovery). But what about the rest of you? It’s time to step up and work toward progress like your colleagues in other fields. It’s time to move beyond the dark ages.