There Is No Invisible Hand - Jonathan Schlefer by Jonathan Schlefer | 10:06 AM April 10, 2012 One of the best-kept secrets in economics is that there is no case for the invisible hand. After more than a century trying to prove the opposite, economic theorists investigating the matter finally concluded in the 1970s that there is no reason to believe markets are led, as if by an invisible hand, to an optimal equilibrium — or any equilibrium at all. Of course, the dynamic but turbulent history of capitalism belies any invisible hand. Adam Smith suggested the invisible hand in an otherwise obscure passage in his Inquiry Into the Nature and Causes of the Wealth of Nations in 1776. In the 1870s, academic economists began seriously trying to build “general equilibrium” models to prove the existence of the invisible hand. Leon Walras, of the University of Lausanne in Switzerland, thought he had succeeded in 1874 with his Elements of Pure Economics, but economists concluded that he had fallen far short. An engineering analogy may help.
US Debt Ceiling Visualized: Stacked in $100 dollar bills @ $16.394 Trillion Dollars $122,100,000,000,000. - US unfunded liabilities by Dec 31, 2012. Abovet you can see the pillar of cold hard $100 bills that dwarfs the WTC & Empire State Building - both at one point world's tallest buildings. If you look carefully you can see the Statue of Liberty. The 122.1 Trillion dollar super-skyscraper wall is the amount of money the U.S. Government knows it does not have to fully fund the Medicare, Medicare Prescription Drug Program, Social Security, Military and civil servant pensions. The unfunded liability is calculated on current tax and funding inputs, and future demographic shifts in US Population. Note: On the above 122.1T image the size of the bases of the money stacks are $10 billion, and 400 stories @ $4 trillion "It is incumbent on every generation to pay its own debts as it goes. "This is when you need to remember that when a nation's economy collapses, the wealth of the nation doesn't disappear, it only changes hands." Everyone needs to see this.
Bagsiden: ’Mere kul på’ Klodens klima kokser. Det strømmer ind med videnskabelige advarsler. Det er her og nu, udledningerne af drivhusgasser skal bremses. Men ha, ha, det vrøvl vil vi da blæse på. Nu har USA’s højreekstremister fået dansk følge. I teksten hedder det: »Angsten for de såkaldte klimaforandringer er nærmest blevet en religion, der ikke kan eller må kritiseres, fordi den regnes for et fastslået faktum. Skatteborgerpenge Man gætter nok ikke galt, hvis man antager, at pengene til DFU’s dyre annonce til syvende og sidst er hentet i skatteborgernes lommer. Ved en freud’sk fejlskrivning hedder det i DFU’s triumferende brev om kampagnen: »Igennem flere år har vi været eksempler på skræmmekampagner, der har haft til hensigt at føre klapjagt på forskning og initiativer, der har ønsket en fair og konstruktiv debat Så sandt som det er skrevet.
Robert Brenner: A Marxist explanation for the current capitalist economic crisis Robert Brenner. Marxist economist Robert Brenner was interviewed by Seongjin Jeong for Hankyoreh, one of South Korea’s leading daily newspapers. The interview was published on January 22, 2009. Seongjin Jeong: Most media and analysts label the current crisis as a ``financial crisis''. Robert Brenner: It's understandable that analysts of the crisis have made the meltdown in banking and the securities markets their point of departure. This could not be more misleading. How would you explain the long-term weakening of the real economy since 1973, what you call in your work ``the long downturn’’? What mainly accounts for it is a deep, and lasting, decline of the rate of return on capital investment since the end of the 1960s. What happened was that one after another new manufacturing powers entered the world market --Germany and Japan, the northeast Asian newly indistrialising countries (NICs), the South East Asian ``Tigers'' and, finally, the Chinese leviathan. This is a complex issue.
Revealed – the capitalist network that runs the world PLoS One By Andy Coghlan and Debora MacKenzie AS PROTESTS against financial power sweep the world this week, science may have confirmed the protesters’ worst fears. An analysis of the relationships between 43,000 transnational corporations has identified a relatively small group of companies, mainly banks, with disproportionate power over the global economy. The study’s assumptions have attracted some criticism, but complex systems analysts contacted by New Scientist say it is a unique effort to untangle control in the global economy. The idea that a few bankers control a large chunk of the global economy might not seem like news to New York’s Occupy Wall Street movement and protesters elsewhere (see photo). “Reality is so complex, we must move away from dogma, whether it’s conspiracy theories or free-market,” says James Glattfelder. The Zurich team can. The work, to be published in PLoS One, revealed a core of 1318 companies with interlocking ownerships (see image). 1. (Data: PLoS One)
Krisen og den udeblevne systemkritik II Kære Per Bilde, Niels Finn Christiansen, Bent Moos, Svend Mortensen, Jørgen Lindgaard Pedersen, Niels Chr. Sidenius, Vibeke Sperling og Leif Søndergaard. Tak for kronikken d. 11. april, som reagerer og kommenterer min pamflet Krisen og den udeblevne systemkritik. Formålet med den var kort og letlæseligt at bruge den aktuelle krise til at vise, at det kapitalistiske system er selvdestruktivt. Det nødvendiggør nogle forenklinger, men legitimerer selvsagt ikke grundlæggende fejl i ’analysen’. I anerkender, at mit motiv for at ’frikende’ politikerne, erhvervslivet og bankerne for krisen er at fokusere på kapitalismen som system. I nævner også politikernes ansvar for »den husejervenlige skattepolitik«. Som en mønt på højkant Bankernes uansvarlighed med hensyn til boliglån var ganske vist den umiddelbare årsag til ’boblen’. Denne iagttagelse er ikke særlig original. I har ret i, at ikke alle ubalancer er selvforstærkende, så dér burde jeg måske have taget et forbehold. Defaistisk hjørne
LIVE from the NYPL & The Aspen Institute Present: Capitalism and the Future What will the American economic system look like in the months and years ahead? Who are the innovators currently shaping the future? And what will be the role of business in that future? President of the Aspen Institute, Walter Isaacson invites Niall Ferguson, MA, D.Phil., Laurence A. About Niall Ferguson Niall Ferguson is Laurence A. About Walter Isaacson Walter Isaacson is the President and CEO of the Aspen Institute, a nonpartisan educational and policy studies institute based in Washington, D.C. About Indra Nooyi Indra Nooyi is Chairman and Chief Executive Officer of PepsiCo, which has the world's largest portfolio of billion-dollar food and beverage brands, including 18 different product lines that each generate more than $1 billion in annual retail sales. About Eric Schmidt Since joining Google in 2001, Eric Schmidt has helped grow the company from a Silicon Valley startup to a global enterprise.
On The Trail Of Dubai's Stolen Gold: A Robbed Client Breaks The Silence, And A Fascinating Detail Emerges On Christmas Day, 2015, we told our readers the fascinating tale about the Turkish-Iranian gold smuggling ring - perhaps the biggest and most brazen in history, one which lasted for years, which saw billions in gold transported out of Turkey and into Iran to allow Tehran to circumvent the western financial sanctions using gold as a medium for bater, and which was all made possible thanks to the tiny Emirate of Dubai. What made this particular instance of gold smuggling especially memorable is that it reached to the very political top in both Turkey, and Iran, and Dubai. Here, for those who missed it the first time, is the letter that Gold.A.E.'s stunned clients received in late December: Dear Client A group of minority shareholders of GOLD HOLDING suspected that there were questionable financial transactions being undertaken in Gold AE DMCC ("the Company"). But was Gold Holding involved in the smuggling of billions in gold out of Turkey and into Iran?
Bog for bog: Finanskrisen skyldtes ikke grådighed Der er jo ingen, der tror på, at grådigheden opstod i 00’erne. Den har altid været der. Finanskrisen skyldes nærmere, at man lidt efter lidt havde fjernet den kontrol, man klogeligt oprettede efter krisen i 30’erne, siger professor i økonomi Christen Sørensen. Han var en af de få, der forsøgte at advare imod en forestående krise, før markedet krakkede i 2008. Her anbefaler han fem bøger, der kan hjælpe os til at forstå finanskrisen. 1. Du snyder os lidt på konceptet, når du fremhæver en rapport i stedet for en bog. »Ja, det gør jeg, fordi det er den mest den mest autoritative og den mest grundige rapport om baggrunden for finanskrisen. Undersøgelseskommissionen bag rapporten havde fået til opgave at finde årsagerne til krisen – giver de en analyse af, hvorfor man havde dereguleret den finansielle sektor? »I den tidligere nationalbankdirektør Alan Greenspan havde det frie marked en person, der tillod alt. Hvem har ellers ansvar for finanskrisen i USA? »Nej, det kan man ikke sige. 2. 3. 4.
From crisis to crisis: can capitalism survive? Part I: Can Capitalism Survive? Part II: Details Proliferate, Structure Abides Can capitalism survive? “No,” argued two of the system’s most astute observers, “it cannot.” Schumpeter wrote in the 1940s, when the specter of communism was still haunting Europe, but in today’s climate of financial meltdown the idea that capitalism is destroying itself has once again gained traction outside of traditionally socialist circles. A growing sense of uncertainty and fear about the future is certainly part of this . For both Marx and Schumpeter, systemic risk is at the very heart of the system. David Harvey makes a similar argument in . Sometimes the wages are too high and sometimes they are simply too low to sustain accumulation. The Keynesian “solution”, however, introduced a new set of barriers. It is fascinating to observe how well-intentioned “enlightened” capitalists like Joseph Stiglitz and Paul Krugman have responded to this new crisis of underconsumption.
16 things germans do better: • Football • Beer… How to Fix Money and Banking System - Positive Money Proposals What We Need We’ve spent the last four years researching the problems caused by the current debt-based monetary system and how to fix them. This is what we think needs to change to fix our broken money system: History has shown that when banks have the power to create money, they create too much in the good times, causing financial crises, and then create too little money in the bad times, making recessions and unemployment even worse. who has the power to create money,how much money they create, andhow that money will be used. However this process is set up – whether it’s the Bank of England or a new committee that decides whether to create money – it must be accountable to Parliament and protected from abuse by vested interests. Currently, banks create money when they make loans, which means that for every pound in your bank account, someone somewhere else will be a pound in debt.
Testimony of Marriner Eccles to the Committee on the Investigation of Economic Problems in 1933 to the Senate Committee on the Investigation of Economic Problems in 1933. It is an historic document – laying out the future terms of the Federal Deposit Insurance Corporation, the management of money supply nationally through open market operations, the Bretton Woods Accord on currency stability, mortgage refinancing as monetary stimulus, and reforms of the Federal Reserve System to eradicate the excesses of untamed capitalism and financial dominance of Wall Street. He proposes higher income and inheritance taxes as essential to promote economic growth, curb inequality and forestall political instability. Although he was a titan of industry - with banks, railroads and corporations spanning the American west - Eccles was born the son of an illiterate, bigamist, Mormon, Scottish immigrant. Following his testimony, the Utah banker was invited by Franklin Roosevelt to come to Washington to spearhead legislation to enact his proposed reforms.
Brazil, like Russia, under attack by Hybrid War — RT Op-Edge Pepe Escobar is an independent geopolitical analyst. He writes for RT, Sputnik and TomDispatch, and is a frequent contributor to websites and radio and TV shows ranging from the US to East Asia. He is the former roving correspondent for Asia Times Online. Born in Brazil, he's been a foreign correspondent since 1985, and has lived in London, Paris, Milan, Los Angeles, Washington, Bangkok and Hong Kong. Color revolutions would never be enough; Exceptionalistan is always on the lookout for major strategic upgrades capable of ensuring perpetual Empire of Chaos hegemony. The ideological matrix and the modus operandi of color revolutions by now are a matter of public domain. UW was spelled out by the 2010 Special Forces Unconventional Warfare manual. “Hostile” powers are meant not only in a military sense; any state that dares to defy any significant plank of the Washington-centric world “order” – from Sudan to Argentina – may be branded “hostile”. Read more We need our own Saddam