How academics are deceiving the public

my message:

quote:

"We make this error because today's economists lead us astray with a fundamental belief that the state through monetary intervention can fix everything."

comment:

We are being led to our doom.

Published on Zero Hedge (http://www.zerohedge.com)

Home > Guest Post: The Deflationist Error

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Guest Post: The Deflationist Error

By Tyler Durden

Created 06/30/2013 - 19:42

Many people believe there is a significant risk that the Irving Fisher debt-deflation theory of great depressions is still an economic threat today. They overlook the fact that Fisher published his theory examining debt-deflation events under a gold standard, which does not apply today. Financial credit contractions therefore take a different appearance. It is indicative of our economic biases that we completely overlook the differences between the sound money of 1929/30 and the infinitely expandable money of 2008/09. We make this error because today's economists lead us astray with a fundamental belief that the state through monetary intervention can fix everything. Even though today's economists are a broad church they follow beliefs instead of well-reasoned economic theory. Beliefs are better left to clerics.

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Source URL: http://www.zerohedge.com/news/2013-06-30/guest-post-deflationist-error