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Sunday, September 11, 2011

Hey Joe, It's a Depression

How About those Economic Principles?

Hey Joe, It’s A Depression

Policy trap cannot be solved

Reality check: Economics is not a science

Recession? More like a depression as we are firmly caught in the grasp of a policy trap that cannot be cured by the alchemy of macro-policy measures. The reason economics will fail at every turn is because it is not an economic issue. That would be akin to blaming the writer of the journal entry for the write down of bad loans.

The truth lies in the physical realities most of us deny and that are now approaching exponential magnitudes. These stark realities relate to the physical constraints of the planet relative to the people it now carries. The metaphorical pie is shrinking, yet those attending the dinner table grow larger by the day

Let us recognize that economics is not a science, but simply a field of musings and philosophy that has ascribed its own contextual logic as a definitive understanding of human activities. Indeed it is truly an anti-science that conjures up invisible hands, infinite growth and currency devices that purport to store value. When such magic is scientifically, mathematically and logically impossible. Existentialism and science is required, not myths and nefarious economic alchemy.

Otherwise the depression and bear markets are set to possibly last for decades to come. And predicting their consequences reaches far beyond what may be humbly imagined.

The philosophies of economics have run their course. Now science must take the forefront and act to end what could be possibly beyond even a long deep depression, but the start of a dark new age for human existence. Hey Joe, say it ain ’t so … 

First Financial Insights Inc.
Toronto, ON
September 10, 2010