Adapted system make their own ruler:
Remember me talking so many times about how adapted systems were all about creating their own yardstick? Well, we found out that Paul Samuelson knew about the problem way back in the 70s. Then we find out that at least three smart economists proved the problem was a serious mistake all along the time series from when Paul Samuelson first identified it. Its called the Walrasian auction problem. Their theories assume that all prices are know at all times and trades are infinitely fast, they assume the permanent yardstick.
Not having a yardstick is the reason why DC has been a pro-cyclical component of recessions for 40 years, and all of my readers have noticed me put up the gray bars and every friggen chart and show the gray bars absolutely coincide with presidential regime changes.
So we now clearly have a clue that the Lafferite and Kanosian influence in DC has been a disaster of epic proportions, one of the greatest frauds ever inflicted on the American economy, short of war. I admit that having LBJ carpet bomb rice farmers was a worse fraud, and nuking Japan cities is up there. But short of war we have witnessed one of the great scientific frauds in American history. It was started by John Keynes, picked up by that Laffer nut, and never corrected.
Max Plank knew what the real story was. But Einstein/Keynes set science on a very bad detour from which we are now just recovering.
No comments:
Post a Comment