Saturday, May 23, 2015

Special Sale this weekend only. Get the videos to my full Forex class for only $250!


This is a Special Offer through Monday, May 25. I am lowering the price of full set of all five videos of my complete, Forex Trading Course--the regular weeklong course that I charge $2995 for--for the unbelievably low price of $250. This is the FULL COURSE, each day, covering the following:

Forex theory and fundamentals
Applied MMT
Oanda trading platform
Trading tactics and strategy
Mental Game

Once again, this is the FULL WEEK-LONG COURSE on video. You will also have access to me, Mike Norman, via email  or FB message if you have questions or need some mentoring.

This is an ubelievable deal. If you want to learn my amazing and highly effective Forex trading approach and the all-important mental game, then take advantage and buy these tapes TODAY! This offer is only good through Monday, May 25.
 Forex course instructional videos

Lambert Strether — Good news on TPP, as Senate passes Fast Track bill with human trafficking poison pill


The plot thickens.
Complicating the picture even more, when you think about it, is the potential for agita in 2016. Suppose Obama, very ironically, gets the anti-slavery provisions “fixed,” i.e. removed, and the bill passes in time. The campaign ads practically write themselves. “A vote for TPP is a vote for human trafficking.” “Why does Senator X support slavery?” Cue the ominous music. Cue pictures of skeletal women and children. Cue the die-ins on the trail. I’m sure campaign shops on both sides are practically drooling with joy, because the only way TPP will pass is with bipartisan support. Getting that amendment in there was GENIUS, and we’ll get to how that happened in a moment.
Corrente
Good news on TPP, as Senate passes Fast Track bill with human trafficking poison pill
Lambert Strether

Pepe Escobar — BRICS trample US in South America

So the long-term Big Picture remains inexorable; BRICS and South American nations – which converge in the Unasur (The Union of South American Nations) – are betting on a multipolar world order, and a continental process of independence.
RT
BRICS trample US in South America
Pepe Escobar

Simon Wren-Lewis — Consensus in macroeconomics


Simon Wren-Lewis seemingly assumes (wrongly) that economics is a natural science. So the rest of the argument about plurality of expert opinion is wrong.

This is basis of the contention that SWL thinks is bogus. Heterodox economists don't assume that economics is a natural science and neoclassical economists do. It's a methodological assumption, just like methodological individualism upon which microfoundations and rational utility maximization are constructed. No matter that such assumptions are called into question by other social sciences, law and government, and business practice.

If only it were that simple, psychology and the social sciences including economics would be achieving the precision of the natural sciences and social engineering would be straightforward. Firms would be run by economists. That is not the case. This is why the debate over economic methodology is contentious.

"It's the assumptions, stupid." What justifies the assumptions? What are the hidden assumptions? This is no longer confined within economics as a discipline. It is philosophy of science, philosophy of social science, and philosophy of economics.

Philosophy is a critical exercise.  "The unexamined life is not worth living." — Socrates

A fundamental question is, "How do you know?" There are a lot of good reasons that the methodological assumptions of economics are incorrect, including that it is a natural science. Neoclassical economists want to sweep this off the table as "already settled." That just dogmatism rather than either science or critical philosophy.

Moreover, SWL admits that there are major disagreements in the mainstream and charges his opposition with being unscientific. How contentious is that?

Mainly Macro
Consensus in macroeconomics
Simon Wren-Lewis | Professor of Economics, Oxford University

Friday, May 22, 2015

Special Sale This Weekend Only! Forex course instructional videos $250


This is a Special Offer through Monday, May 25. I am lowering the price of full set of all five videos of my complete, Forex Trading Course--the regular weeklong course that I charge $2995 for--for the unbelievably low price of $250. This is the FULL COURSE, each day, covering the following:

Forex theory and fundamentals
Applied MMT
Oanda trading platform
Trading tactics and strategy
Mental Game

Once again, this is the FULL WEEK-LONG COURSE on video. You will also have access to me, Mike Norman, via email  or FB message if you have questions or need some mentoring.

This is an ubelievable deal. If you want to learn my amazing and highly effective Forex trading approach and the all-important mental game, then take advantage and buy these tapes TODAY! This offer is only good through Monday, May 25.
 Forex course instructional videos

John Quiggin — Economics in Two Lessons: Draft Preface


John Quiggin asks for comments. This repeats some of what he already posted but it is more fleshed out.
Over the page, the draft preface for my book-in-progress, Economics in Two Lessons
I got some great comments first time round, but I can see it would be easier if I presented my drafts in a more orderly fashion, though not necessarily sequential. So, I’ll begin at the beginning. Comments, both critical and favorable, much appreciated.
John Quiggin
Economics in Two Lessons: Draft Preface

Yannis Papadimitriou — Tsipras at odds with central bank governor

Syriza accuses [Governor Yiannis] Stournaras [head of the Bank of Greece] of sometimes behaving like a minister in the previous conservative government. This accusation is not plucked from thin air: For two years the Oxford-educated economist served under conservative chief Antonis Samaras as finance minister and in this function contributed significantly to the relative stabilization of the Greek economy. However, at that time he also made a lot of enemies on the left. In June 2014, he moved from the ministry to the bank. He made himself a target last December, when he publicly spoke out against early elections. Stournaras has been a "red flag" for the leftists ever since.
But economist Thanassis Mavridis, who runs the online business portal "Capital" is also unable to warm to Stournaras. "I understand the concerns about the independence of the Bank of Greece, but frankly, if we take the concept of independence literally, then Stournaras would not have been allowed to go directly from the treasury to the executive offices of the central bank," he said in an interview with DW.

A timeout of at least a few months would be appropriate in this case, he said, adding: "What would the Germans think if Wolfgang Schäuble were appointed new Bundesbank president overnight? Would that be a good sign for the independence of the central bank?"
DW (Deutsche Welle)
Tsipras at odds with central bank governor
Yannis Papadimitriou
ht Clonal

Podcast for May 22. I talk to Jon Reznick and the work of Hedgclippers.or, exposing Paul Tudor Jones

My guest was Jon Reznick, publisher of the Competitive Advantage Research blog. Jon follows the money so to speak of political contributions made by powerful hedge fund managers (and others). His work helped Hedgeclippers do that great video on Paul Tudor Jones, exposing him as the not-so-charitable and well meaning fellow that everyone thinks he is.

Interesting convo. Listen.

Podcast for May 22: My conversation with Jon Reznick and discussion of Paul Tudor Jones and more.

Michael Stephens — Austerity and Growth: Missing the Point

The pseudo-debate about whether Keynesians and other fellow travellers ought to be embarrassed when governments that engage in fiscal austerity nevertheless experience positive economic growth rates has become a distraction.
For countries like the US and the UK, it is possible under current circumstances for governments to implement budget cuts and still see their economies grow. But the truth of that statement is not fatal to the Keynesian-inspired critique of austerity policies; it is not by any means the end of the story. The more meaningful question is this: What would have to happen in these economies for significant growth to occur in the midst of budget tightening?
Finding an answer to that last question is one of the strengths of the approach to thinking about the economy pioneered by Wynne Godley, and fleshed out further in the Levy Institute’s strategic analysis series. This approach also provides a clear understanding of how deeply irresponsible it is to cut government spending under present economic conditions: because the danger, given the state of the US and UK economies, is not just that budget cuts might slow down the economy, but that they might not.….
Countries can grow along with reducing government contribution either by increasing exports or private debt. Not all countries can increase exports simultaneously so some countries either have to increase the government contribution or see private debt rise in order to grow. The US is unlikely to become a net exporter or even significantly reduce its CAD anytime soon, even with shale oil and fracking. So the growth option under continued austerity is increasing private debt, which is not sustainable and would lead to another crisis down the road. Since the level of private debt is already high historically, it might not be very far down the road.
To bring this back to the tired discussions surrounding austerity policies: yes, it is possible for the United States to have both tight budgets and rising GDP over the next few years. Fiscal conservatism doesn’t make economic growth impossible in the near term — it makes it impossible to grow without increasing financial fragility. In the absence of a significant increase in net exports, keeping the government budget on its current track will lead to either stagnation or an acute crisis. 
Austerians in the United States and elsewhere have been allowed to portray themselves as the champions of steely-eyed realism and prudence. In reality, unless their budget proposals come attached with some workable plan to substantially reduce trade deficits, they are courting private-debt-driven financial crises. In any meaningful sense, they are the true practitioners of fiscal irresponsibility.
And a strong dollar is inimical to increasing net exports. Austerity tends to strengthen a currency. not so much by making it harder to get as by increasing confidence in the discipline and responsibility of the monetary authority — the same erroneous rationale that drives austerity.

Multiplier Effect
Austerity and Growth: Missing the Point
Michael Stephens

Wrong as usual, that fool David Stockman doubles down...


That clown otherwise known as David Stockman, former Reagan budget director, is out once again with another over the top, gloom and doom, dumb ass prediction that is based on nothing other than his own, sheer, misguided ideology and frustration.

Stockman is now predicting a stock and bond market crash because "the Fed has reflated the bubble to an even more gigantic proportion."

Here's some more of what he says...

On CNBC's " Futures Now " Thursday, the former OMB Director said that excessive monetary policy has forced central banks all over the world into a corner, and as a result, "the markets are going to be in for a huge, nasty morning after as people begin to look at where we really are." Read more. 

"Begin to look at where we really are?" What the hell does that mean, anyway?

I had several run-ins (here and here) with Stockman in the past when I was still working at Fox. He's a total moron and a ball of contradictions.

Actually, I don't know who is more pathetic, Stockman or that joke of a network, CNBC, for constantly parading losers like Stockman and Schiff around on their air and not ripping them a new one for their years of bad advice and ridiculous predictions. (Hyperinflation, surging gold, spiking interest rates, foreigner dumping Treasuries, depressions, etc.)

WTF is wrong with you, CNBC? Nik Deogun?

The Fed may raise interest rates soon and then it's feasible that bonds will tank although some of that discounting is probably going on now. The interesting thing, however, is what will happen to stocks and the economy if rates are increased? That's a fiscal injection.

What if rates are raised and GDP accelerates? And stocks climb?

What will Stockman and other idiots like Schiff say then? I'm sure CNBC will have them on to "explain."

Stay tuned.

Schaeuble thinking outside the box?


This would be an interesting development; a parallel currency.  Going back to the 'good old days' of a subordinate drachma system running along side the denarii system.  Could work.  Back to the future here? We'll see.

US Petroleum Industry Review


Nice analysis here on the current situation in US petroleum and products.




Thursday, May 21, 2015

Rakesh Krishnan Simha — Why Russia and China gatecrashed Club Med


Sending a message.

Russia Beyond the Headlines
Why Russia and China gatecrashed Club Med
Rakesh Krishnan Simha

Stephen Williamson — Don't get mathy with me, or I'll give you a good shunning


Stephen Williamson gets back to Paul Romer.

Stephen Williamson: New Monetarist Economics
Don't get mathy with me, or I'll give you a good shunning
Stephen D. Williamson | Robert S. Brookings Distinguished Professor in Arts and Sciences, Washington University in St. Louis

Jason Smith — Frameworks and the Bohr model analogy


Why economics is (mathematical) philosophy rather than science.
As far as I can tell, there are no frameworks for economic models. Sure, there are some principles, but no frameworks. That is to say all economic models are effectively part of the same default framework that I'll call mathematical philosophy. Mathematical philosophy is basically making arguments with math. Physics was part of this "default" framework from about the time of Galileo to about the time of Newton. Newton created the first true framework of physics. Analogously, Darwin created the first framework for biology.….
How can you figure out what a framework is? Imagine you're given an economic question. Now ask yourself if there is something you immediately write down to start solving it. Is there something? That's your framework.….
And in the end, the reason physicists can easily ignore certain models as garbage is that they ignore the main frameworks: classical Newtonian mechanics, relativistic mechanics, quantum mechanics (nonrelativistic quantum theory) or quantum field theory (relativistic quantum theory). String theory is the most recently developed framework (it's not a specific model). If the model is working in a framework, you have to resort to empirical data to call it garbage.

Economists are still in the mathematical philosophy stage, so the only way you can eliminate garbage is empirical data. Romer is trying to set up some new framework that divides economics into "mathiness" and "science", but that's really just more mathematical philosophy! It's not going to work.….
Information Transfer Economics
Frameworks and the Bohr model analogy
Jason Smith

teleSUR — President of Ecuador Denounces Regional Destabilization Attempts

With similar discourse and tactics across the region, President Rafael Correa contends that destabilization attempts against Latin America’s progressive governments are being coordinated regionally. He said that there is a concerted effort by the regional right-wing opposition that seeks to bring about regime change.
“In Brazil, Venezuela, Argentina, in Bolivia and, in Ecuador we see common criteria. And this is articulated. They are the same strategies, and these actors are in contact,” President Correa told the foreign press. “There is a national articulation of this, and an international articulation.”
Naming the tactics of permanent demonstrations, the creation of incidents, and open defiance of the law, Correa said there is a pattern of actions utilized by the opposition which are seen repeatedly. Analysts have recognized that a common demand of opposition forces is the return of free market economies and the strengthening of the private sector [aka neoliberalism and oligarchic democracy].…
As part of the opposition’s strategy, President Correa said that there is psychological warfare being waged on citizens through the media, manipulating information to serve the interests of the elite, and that to combat this the region must unite through integration efforts.…
Having identified the existence of transnational cooperation among opposition groups, Latin America’s left-wing governments will continue presenting a united front through regional integration efforts and socially progressive policies.  
teleSUR
President of Ecuador Denounces Regional Destabilization Attempts
Liz Scherffius, teleSUR correspondent in Ecuador

MIT Future of Solar Energy Study

In the face of the global warming challenge, solar energy holds massive potential for meeting humanity's energy needs over the long term while cutting greenhouse gas emissions. Solar energy has recently become a rapidly growing source of electricity worldwide, its advancement aided by federal, state, and local policies in the United States as well as by government support in Europe, China, and elsewhere. As a result

the solar industry has become global in important respects. Nevertheless, while costs have declined substantially in recent years and market penetration has grown, major scale-up in the decades ahead will depend on the solar industry's ability to overcome several major hurdles with respect to cost, the availability of technology and materials to support very large-scale expansion, and successful integration at large scale into existing electric systems. Without government policies to help overcome these challenges, it is likely that solar energy will continue to supply only a small percentage of world electricity needs and that the cost of reducing carbon emissions will be higher than it could be.

A policy of pricing CO2 emissions will reduce those emissions at least cost. But until Congress is willing to adopt a serious carbon pricing regime, the risks and challenges posed by global climate change, combined with solar energy's potential to play a major role in managing those risks and challenges, create a powerful rationale for sustaining and refining government efforts to support solar energy technology using the most efficient available policies.
MIT Future of Solar Energy Study

David Lightman — Jeb Bush: Republicans spent too much when my brother was president


And we can assume that HRC would try to run a larger surplus than Bill.

Our best hope is Bernie Sanders with Stephanie Kelton as his chief economic advisor.

McClatchy
Jeb Bush: Republicans spent too much when my brother was president
David Lightman, McClatchy Washington Bureau

Brad DeLong — Fiscal Policy and Economic Growth


Outline.

Grasping Reality
Fiscal Policy and Economic Growth
Brad DeLong | Professor of Economics, UCAL Berkeley

Robert Parry — Obama’s Strategic Shift

President Obama has belatedly detected the looming catastrophe in Syria and Iraq as Sunni terrorists gain ground. He also grasps the need for Russian and Iranian help. But his administration remains infested with neocons and liberal war hawks who could sabotage the needed deals, reports Robert Parry.
This is a significant problem, and it is not just neocons embedded in the administration and bureaucracy. It is compounded by the proclivity of the deep state, especially the CIA, to use "all available resources" to further the aims of the US as it assumes these interests to be — as in the enemy of our enemy is our friend.

There seems to be reason to suspect that some US agents are using ISIS to further US aims in a way similar to the US arming and advising the Islamists in Afghanistan that were opposing the Russian occupation. If so, the potential for blowback is at least as great.

This gets into geopolitics and geo-strategy where power and economics are joined at the hip in the Great Game for control of territory, including sea and air, and natural resources especially energy.

This is going on not only in MENA (the Middle East and North Africa) but also in Central Asia and the Balkans, as well as Africa. The result is increasing global instability.

Consortium News
Obama’s Strategic Shift
Robert Parry

Also
Two weeks ago, Electronic Intifada reported public comments by Israeli Defense Minister Moshe Ya’alon in which he cited Hiroshima and Nagasaki as role models in responding to Iran. Ya’alon suggested that Israel might have to nuke Iran in order to prevent a long war: “at the end, we might take certain steps.” Last week Ali Gharib picked up the EI report at Lobelog and linked to the video of Ya’alon, speaking in English on May 5 to the Israel Law Center (and posted by that rightwing group, which supplied a transcript).
Mondoweiss
US press blacks out Israeli defense minister’s citation of ‘Nagasaki and Hiroshima’ as model for dealing with Iran
Philip Weiss

Benziga — New Book Explores Country's Modern Monetary System, Federal Spending

"The National Deb(i)t: How the Post-Gold Standard Modern Monetary System Really Works" offers insights on Treasury bonds, modern monetary theory, printing money, the debt ceiling and national debt. For instance, Delzio writes, since leaving the gold standard, the federal government now taxes its residents and businesses to regulate economic aggregate demand, not to finance spending. With its monopoly of control over dollars, the Federal Reserve Bank routinely swaps dollars for assets, acting as the banking agent for the federal government.
Federal government's spending does not just revolve on federal taxes and borrowing, leading to a spending limit – far from it. In a national economy, mass consumption and mass production must work together, and once that happens, federal deficit spending can begin to move toward balance. Above all, Delzio calls for diversity of thought about monetary policy, writing that it is just as valuable as diversity in investments, especially when it comes to the subject of the national debt.
Author Edward Delzio serves as an investment advisor representative with Primerica Advisors in Westchester County, New York. He spent nearly 30 years as a Treasury bond broker at RMJ, Cantor Fitzgerald, and eSpeed….
Benziga
New Book Explores Country's Modern Monetary System, Federal Spending
PRWeb


THERE IS AN innocent false impression of our present day economic ecology that widely exists today. This collective misunderstanding mostly arises from a failure to distinguish the completely separate monetary functions of the United States federal government, from the monetary functions of everyone else. Since the gold standard era ended, the federal government operates under a new paradigm, different from what we were taught long ago, and different from what we are still told today. Certain idiosyncratic relics from that bygone-gold-standard era, like the formality of needing to raise a debt ceiling to increase federal government deficit spending, or the tradition of selling Treasury bonds to finance that spending, still clumsily coexist with today's post-gold-standard reality. As a result, the important needs of the rest of us, to balance our individual budgets, are routinely confused and often commingled with the more important needs of the federal government, to balance their entire economy.

In the gold-standard era, the US federal government, then a user of dollars backed by gold, needed to finance deficit spending by raising revenue via taxation, or by selling debt in the form of bonds, which are today called US Treasury bonds. When it left the gold standard, however, the federal government completely changed, from being a user of dollars (backed by gold), to becoming the issuer of dollars (that are not backed by gold). Today, in the post-gold-standard era, the function of financing federal government deficit spending has also completely changed, and Treasury bonds now play a new multifunctional role in our modern monetary system.

All US Treasury securities (short-term bills, medium-term notes, and long-term bonds) are a safe investment for all users of dollars because all US Treasury securities are risk-free, interest-bearing, time deposits in the Securities, or savings account, at the US central bank, the Federal Reserve. Treasury bonds are actively traded in a liquid global Treasury bond market which serves as a safe harbor for dollars taking flights to quality away from risky assets, into risk-free assets like Treasury bonds, during global market turbulence. Treasury bonds are used in monetary policy to set the price of dollars, or, the interest rate of money, and to keep the economy growing smoothly by accommodating or tightening economic conditions to achieve full employment and price stability. Treasury bonds are used in fiscal policy to help grow the economy whenever increased federal government deficit-spending is needed to stimulate aggregate demand. Furthermore, Treasury bond issuance today serves to neutralize the inflationary effect of newly printed, freshly created, fiat dollars that now finance federal government deficit spending.

The federal government is the issuer of dollars, and everyone else - you, me, all households, all businesses, any US local cities, US states, or foreign governments (all together, this book will refer to these as the "nonfederal government"), are the users of dollars. In today's modern monetary system, all dollars are initially added by federal government deficit-spending, and they multiply from nonfederal government deficit-spending. All dollars are printed, or created, by both federal-government and nonfederal-government deficit spending, and far from being a problem, this is how the economy grows. Injections of newly created dollars from both federal-government deficit spending and nonfederal-government deficit spending kick that flywheel, a yin-yang of supply and demand, to keep it spinning in a steady balance along with all other existing dollars in the economy. Post-gold-standard, the federal government, the issuer of dollars, doesn't need to borrow dollars to deficit-spend anymore, but the nonfederal government, the users of dollars, still does.

Lee Fang — Chinese Law Firm to Merge With American Firms, Employ Howard Dean, Newt Gingrich


China learning the capitalist ropes. Invest in heartburn remedies.
Dacheng, one of the biggest law firms in the People’s Republic of China, is set to merge with two major American law firms, Dentons and McKenna Long & Aldridge, making it the largest law firm in the world.
The merger will reportedly give Chinese companies that Dacheng represents — including major Chinese state-owned firms — access to advice from attorneys and policy professionals in the United States employed by Dentons and McKenna Long — and vice versa.
McKenna Long and Dentons also engage in lobbying, giving Dacheng’s clients a new avenue for understanding and influencing the American system.….
The Intercept
Chinese Law Firm to Merge With American Firms, Employ Howard Dean, Newt Gingrich
Lee Fang

Leonid Bershidsky — Nazis Triumph Over Communists in Ukraine

It's goodbye Lenin, hello Nazi collaborators in Ukraine these days. Laws signed into effect by President Petro Poroshenko require the renaming of dozens of towns and hundreds of streets throughout the country to eliminate Soviet-era names. At the same time, Ukraine will begin to honor groups that helped Hitler exterminate Ukrainian Jews during World War II.
Ukrainians' desire for a European identity and a break with the country's Soviet past is Poroshenko's biggest political asset, but these latest steps should worry the country's Western allies.….
A step int the right direction the US media, but still no mention of actual neo-Nazis today, including within the Ukrainian government itself.

Gordon M. Hahn, Analyst and Advisory Board Member of the Geostrategic Forecasting Corporation, Chicago, Illinois; Senior Researcher, Center for Terrorism and Intelligence Studies (CETIS), Akribis Group, San Jose, California Analyst/Consultant, Russia Other Points of View – Russia Media Watch; and Senior Researcher and Adjunct Professor, MonTREP, Monterey, California. Dr. Hahn has been a Senior Associate at the Center for Strategic and International Studies (2011-2013) and a Visiting Scholar at both the Hoover Institution and the Kennan Institute.

Learn to trade Forex. Global macro strategy. Market Composition and "bulletproof" Mental Game!

Forex trading course online

David Corn — George W. Bush's CIA Briefer: Bush and Cheney Falsely Presented WMD Intelligence to Public

On "Hardball," Michael Morell concedes the Bush administration misled the nation into the Iraq War.…
Morell's remarks support the basic charge: Bush and Cheney were not misled by flawed intelligence; they used the flawed intelligence to mislead.
Mother Jones
George W. Bush's CIA Briefer: Bush and Cheney Falsely Presented WMD Intelligence to Public
David Corn

Mark Thoma — '1776: The Revolt Against Austerity'


Were the founding fathers the forerunners of Keynes? Maybe conservatives proclaiming a need to return to the intentions of the founding fathers should refresh their assumptions about those intentions.


Economist’s View
'1776: The Revolt Against Austerity'
Mark Thoma | Professor of Economics, University of Oregon

Paul Romer — Research without Reading


The ultimate takedown of Robert Lucas and the Chicago School.

ROFLMAO. Romer hits a homer on this one. Bonus:  it is short, too.

Paul Romer
Research without Reading
ht Mark Thoma at Economists View



Simon Johnson and Andrei Levchenko — The Trans-Pacific Partnership (TPP): This Is Not About Ricardo

The administration and its supporters on this issue, including leading Republicans, argue that the case for TPP rests on basic economic principles and is only strengthened by the findings of modern research. On both counts their claims are greatly exaggerated – particularly with regard to the notion that more trade, on these terms, is necessarily better for the United States. 
There is a strong theoretical and empirical case – dating back to David Ricardo in 1817 – that freer trade should make countries better off. However, modern-day trade agreements, including those currently being negotiated, are very different from earlier experiences with trade liberalization. 
The TPP is not only – perhaps not even mostly – about freer trade, and thus who gains and who loses is very much dependent on what exactly are the details of the agreement. The exact nature of the provisions matters and at this point, because the TPP text is not available to the public, we cannot be sure whom this trade agreement will help or hurt within the United States or elsewhere.
The Baseline Scenario
The Trans-Pacific Partnership (TPP): This Is Not About Ricardo
Simon Johnson, Ronald A. Kurtz Professor of Entrepreneurship at MIT Sloan, and Andrei Levchenko, Associate Professor of Economics at the University of Michigan

Gavin Kennedy — 'Mathiness' In Economics Is A Dead End


Adam Smith expert Gavin Kennedy on Justin Fox's post at Bloomberg on Paul Romer on "mathiness."

Many of us tend to put all the blame on the Chicago School that drove Keynes and the rest of heterodoxy out of the mainstream but it was MIT's Paul Samuelson probably more than anyone that drove economics in the direction of being a "science" and therefore math-based, which led to formalism over realism and absorption with model creation instead of causal explanation (which is what science is actually supposed to be about). 

There's plenty of blame to go around. No need to get bogged down in who is most to blame. 

Adam Smith's Lost Legacy
'Mathiness' In Economics Is A Dead End
Gavin Kennedy

David F. Ruccio — Dismal economists

I’m taking nominations for the best examples of dismal economic scientists. 
While I wait for your suggestions, I’m going to offer two of my own nominations: Tyler Cowen and Paul Romer.
I would rule Tyler Cowen out as an economist. IMHO, he is a shill for oligarchic "democracy" based on classical liberalism.

Romer is only suffering from a curable cognitive-affective bias, a common syndrome called "scientism." Maybe reading Paul Feyerabend would help him get over it.

Occasional Links & Commentary
Dismal economists
David F. Ruccio | Professor of Economics University of Notre Dame Notre Dame