Thursday, August 25, 2011

WAR: Zero Hedge versus Nouriel Roubini

Check out these Roubini tweets:

Trying to improve on Hazlitt's critique of Keynes is like trying to improve on Shakespeare.

20 comments:

  1. Why are "we" called juvenile for preaching that central planning doesn't work, people need to be a bit more humble (the fatal conceit) and that all of us need to believe in other's ability to figure stuff out on their own utilizing the resources around them?

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  2. "@zerohedge read 9 studies showing that Keynesian stimulus worked.Then write a scientific rebuttal if you got 1.Enough of your juvenile rants"

    Juvenile? 13 hours later:

    "Some nuts do defend slavery as "efficient" @DocStocks: next these regressive nutcases will want to go back to slave labor..gold ol' times"

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  3. Get's better, now he's retweeting an MMT attack on the crazed Austrians:

    "Hyperventilators indeed @INETeconomics: Zimbabwe! Weimar Republic! How MMT Replies to Hyperinflation Hyperventilators http://bit.ly/qgddJO"

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  4. Thanks for sharing with readers the Hazlitt book. Hopefully ZeroHedge will have a copy on hand to refute Roubini.

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  5. Slavery was far closer economically to the outrageous taxation levels we have now that the keynesians support than anything the austrians favor.

    I don't need academic studies anyway to show me that TARP and QE2 and this other nonsense completely failed in every possible way.

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  6. The more desperate those without clothes get, the more vociferously they lash out at those who expose their nakedness.

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  7. ...and I quote, from Roubini's twitter itself:

    Patethic democracy of Twitter/Blogs: any ignoramus/wacko/hack without even Econ 101 feels entitled to spew pompous nonsense on Keynes & Econ

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  8. Here's our boy Nouriel in 2009 saying gold will barely touch $1,150/oz but never $1,500...

    http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aOfwpkHV2clM&pos=5

    Yet, he fails to acknowledge he was wrong in his forecast.

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  9. Hazlitt is my favorite author because of this book. Literally rips Keynes' arguments to shreds in a funny but coldly logical way. Great book.

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  10. Has anyone read, "Where Keynes Went Wrong" By Hunter Lewis? Was wondering if that's on par with Hazlitt's critique as well.

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  11. Isn't this guy an elitist prof at Harvard? I find it interesting, if not ironic, at how he uses a fallacious "low brow" style of argument to refute the zh piece. He certainly didn't respond in an intellectual fashion.

    When you really think about it, for many mainstream economists, it has to be quite disconcerting to watch many of the ideas you have dedicated your academic life to, get proven wrong. Its like having a Phd in alchemy and dedicating your entire life to it, and then one day the public wakes up and realizes that there is no such thing as magic.

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  12. Why does everyone ignore that printing money is totally unethical? You are transferring purchasing power from someone who worked for their money and saved it to someone who created it from nothing. It is a total rip-off.

    I get angry at these intellectuals who advocate further QE.

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  13. “The few who understand the system will either be so interested in its profits or be so dependent upon its favors that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests.”

    —The Rothschild brothers of London writing to associates in New York, 1863, laying the groundwork for the eventual passage of their catastrophic Federal Reserve Act on December 23, 1913.

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  14. Notice also that in that fatal year of 1913 we see two other things born or in embryo:

    1. Individual Income Tax - a move so against the original Constitution that there had to be a Constitutional Amendment to make it possible. This undercut the States severely.

    2. Direct election of Senators - which created "senators for life" who could be wooed by national special interests and made the Senate more of a Federal Legislature like the House than what it was supposed to be, a college for the States to meet as equal sovereigns.

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  15. I suspect that Roubini's account has been hacked, much like Krugman's was the other day. Sorry folks, but this is not Roubini tweeting.

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  16. Keynes had attended the Paris Peace Conference in 1919 as a technical adviser to Prime Minister Lloyd George, but resigned his post in protest of what he regarded as outrageous demands being made upon a prostrate Germany for reparations.
    His book (available on-line) deals with the economic condition of Europe prior to the war, the Conference itself, with interesting portraits of the attendees, the Treaty which resulted, and reparations. Keynes saw no ready solution, which “leads me to a necessary digression on the currency situation of Europe.”
    His "digression", a book entitled "The Economic Consequences of the Peace", begins:
    “Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency. By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some. As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery.”
    “Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose."

    Amazing words, predicting with great accuracy what would happen in Germany just a few years thereafter, as prices were raised weekly, then daily, then hourly, and “money” was printed so rapidly that it was actually blank on one side.

    In that the US dollar has lost over 95% of its purchasing power since the creation of the Federal Reserve System in 1913, has the “existing basis of society” not likewise already been overturned in America by inflation, EXACTLY as Keynesians require?

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  17. the twitter dialogue between @zerohedge and @nouriel is very funny .

    I have not heard of this book before so I will check it out , thanks for the link ;)

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  18. Personally, I think it's @nouriel who is the hack spewing regurgitated inaccuracies.

    He's just another person frustrated with the reality that economics is demonstrating to him how little he really knows about what he imagines he can design.

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  19. This type of low brow argumentation without regard to logical reasoning is typical of Roubini. If you don't believe me just watch this Intelligence Squared debate. The guy is a mental midget and an emotional wreck. He's just a hack that serves the MSM and TPTB requirements (dumb and seeking fame).

    http://intelligencesquaredus.org/index.php/past-debates/big-govt/

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  20. @Nouriel is talking his book. His bread and butter is cb consulting. End the Fed is a movement that is politically fashionable and now a real possibility.

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