On The Money;
Economics for the 99%
The Method to My Madness pt 1
The Black Hole Swallowing The Earth
Every year economists write more fat impenetrable books, and every year their theories get further and further from reality. Money itself has become completely unhinged from the real world, as increasingly abstract mathematical concepts get transformed into incomprehensible financial instruments. Derivatives, credit default swaps, collateralized debt obligations, high-frequency trading algorithms, etc have so little to do with real economics that I won’t even dignify them with discussion, except to say that they have become a huge part of the financial services sector of the economy, and financial services have become a huge part of total global economic activity. Financial services, now account for about 1% of our national GDP, even though this gigantic industry makes nothing at all.
The Financial Services Sector has become a black hole, from which nothing escapes, and into which everything is drawn and destroyed in the process. This black hole has become the central focus of the science of economics. In this rarefied world, money masturbates, knocks itself up, and multiplies without any contact with the real world at all. The more this happens, the more central the Financial Services Sector becomes to the global economy, and the less everything that really does happen in the real world matters to economists. The Financial Services Sector spawned the recent housing bubble, and economists all over the world praised its transcendent genius, even though any idiot, and I’m talking about myself here, could see that it would inevitably collapse.
Economists find all of this monetary masturbation incredibly fascinating. They find the process of making money out of nothing irresistible, and they seek ways to understand and perpetuate it, much the way theoretical physicists feel about their equally insane quest to discover the Higgs-Boson particle, the so-called “God Particle”.
No doubt you’ve heard of the recently built, 17mile wide, Large Hadron Super-Collider that straddles the border between France and Switzerland, designed largely to search for this astoundingly tiny particle. Perhaps you even heard the warnings of some physicists, that this enormous device just might, accidentally, produce a black hole, that might then proceed to swallow the entire Earth, destroying the planet and every living thing that inhabits it. On the other hand, there’s an equally small chance that we might learn something useful from the experiments at the large Hadron Super-Collider.
Similarly, economists concoct increasingly dangerous, and pointless ways to study the behavior of pure greed, in a vacuum at very near the speed of light. These experiments require enormous amounts of resources and energy. The Financial Services Sector sucks these resources and energy from the real world, threatening whole stock exchanges, global markets and national currencies with instantaneous collapse.
Accelerating purified greed to near-light velocity within the vacuum of the Financial Services Sector generates enormous heat. This heat triggers expansion. As the Financial Services Sector expands, it draws the real world into the direct path of this superheated high-velocity greed, with which, it inevitably collides, as happened most recently in 2008.
In this collision, we saw greed shatter into its constituent components: dishonesty, fraud, violence, error and theft, which we can then trace by examining the damage they inflict on community, culture, and environment. However, as the Financial Services Sector becomes more central to the economy, economists study these high-velocity, purified greed experiments with little regard for their effects on the real world, our lives or the environment. They simply seek to understand how a system based on unbridled greed, functions at its highest level. That’s their job. That’s what they get paid to do.
Like the unbelievably expensive and inordinately risky experiments at the Large Hadron Super-Collider, designed to answer misdirected questions about the imperceptibly tiny, economic experiments involving purified high-speed greed do nothing to make the world a better place, or help us make sense of our lives. Instead, these experiments simply seek to expand the emptiness of finance, until it swallows the real world whole. These experiments exemplify our cultural insanity.
They have not solved humanity’s problems. They have only created more of them. They have not unraveled the mysteries of the universe. They have driven themselves insane, and taken a lot of us with them. They do not bring us closer to understanding the mind of God. They have created hell on Earth, while they try to tell us how many angels can dance on the head of a pin.
Economists, like those nuclear physicists at the Large Hadron Super-Collider, have lost their minds. They’ve lost their grip on reality as they reach further and further into nothingness. They have reached the limits of objective science, and economists have seen the end of capitalism, but they refuse to admit to themselves that it is over.
They have failed. Their endeavors were doomed from the start, and now, they have proven it. They failed because of flawed assumptions, which date back 500 years to “The Enlightenment”. These flawed assumptions led them to adopt a flawed methodology.. We call that flawed methodology, “objective science”. Mark it well. While objective science produced great leaps forward in the science of physics, it never did much for the science of economics, and it never delivered on its original promise to unlock the mysteries of the universe. The time has come to face the real limitations of objective science.
Next week, part two