Huffington Post - Priceless: How the FED bought the Economics Profession
Submitted by mrjosh27 on Wed, 09/09/2009 - 08:47
in
by Ryan Grim | Huffington Post
The Federal Reserve, through its extensive network of consultants, visiting scholars, alumni and staff economists, so thoroughly dominates the field of economics that real criticism of the central bank has become a career liability for members of the profession, an investigation by the Huffington Post has found.
This dominance helps explain how, even after the Fed failed to foresee the greatest economic collapse since the Great Depression, the central bank has largely escaped criticism from academic economists. In the Fed's thrall, the economists missed it, too.
"The Fed has a lock on the economics world," says Joshua Rosner, a Wall Street analyst who correctly called the meltdown. "There is no room for other views, which I guess is why economists got it so wrong."
One critical way the Fed exerts control on academic economists is through its relationships with the field's gatekeepers. For instance, at the Journal of Monetary Economics, a must-publish venue for rising economists, more than half of the editorial board members are currently on the Fed payroll -- and the rest have been in the past.
The Fed failed to see the housing bubble as it happened, insisting that the rise in housing prices was normal. In 2004, after "flipping" had become a term cops and janitors were using to describe the way to get rich in real estate, then-Federal Reserve Chairman Alan Greenspan said that "a national severe price distortion [is] most unlikely." A year later, current Chairman Ben Bernanke said that the boom "largely reflect strong economic fundamentals."
Wonder if they will promote any of the books coming out
in the next few weeks about the failed Fed policies. Hey Huff Po! Don't forget to do a piece on the Dr. Paul's new book next week.
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The economist called "brilliant" and a
dissenter while working for the Fed is also the author of an article defending the Fed referred to in another front page DP thread, Ron Paul Worries the Council on Foreign Relations (not sure the exact title.)
"Blinder describes Dr. Paul as “an extreme libertarian and longtime foe of the Fed. He has, incredibly, persuaded almost two-thirds of the House of Representatives to co-sponsor a bill that would jeopardize the Fed’s independence.” According to Blinder, the Fed “gets plenty of critical evaluations” of its policies and decisions. He maintains that Dr. Paul’s bill “could easily develop into something quite dangerous.”
So, while it's good to see HuffPo putting on a thinking cap once in a while, it may be a little early to celebrate.
hmmm
very interesting!
It's a great point reed3v
Looks to me the left is preparing to end the fed as well, and prehaps give us a global central bank woth Alan Blinder as the CEO?
Like I always say - you guys
Like I always say - you guys give these elitist WAAY too much credit! Come on now, we are witnessing first-hand the result of how long-term-unsustainable central planning actually it. Do you really think it would work in any capacity if you planned bigger and even more centrally?
Not me. These guys are cooked. Statism is rooted in pure human ego. Pride comes before a fall.
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Progress is precisely that which the rules and regulations did not foresee. - Ludwig Von Mises.
It's late August and I'm 80% cash and 20% long term Puts AGAINST the market. Gold is also going down. Want to know why?
http://www.investophoria.com
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Progress is precisely that which the rules and regulations did not foresee. - Ludwig Von Mises.
The reason I don't believe they are cooked
USA has the WMD, global occupations of how many nations?
Mises was not mentioned in the article, nor was Ron Paul who recently said, "We're all Kenyesians now", and what he would like to see is us all claiming to be Misesians. They give Mises no credit, isn't that a problem?
What does it matter whether
What does it matter whether their theories work if they hang onto the machinery of control anyhow.
So they crash the whole world's economy the way the Comunists did Russia's and China's. So what? That just gives them more excuses to implement more draconian controls.
It's not enough that they are dangerously wrong. They have to be UNDERSTOOD by the bulk of the population to be dangerously wrong.
= = = =
"Wunnerful, Wunnerful! Turn off the bubble machine!"
-Lawrence Welk (as satirized by Stan Freeberg.)
Posted on HuffPo two days ago
The points in the article that caught my attention were these:
Galbraith, a Fed critic, has seen the Fed's influence on academia first hand. He and co-authors Olivier Giovannoni and Ann Russo found that in the year before a presidential election, there is a significantly tighter monetary policy coming from the Fed if a Democrat is in office and a significantly looser policy if a Republican is in office. The effects are both statistically significant, allowing for controls, and economically important.
But, if the intellectual edifice has collapsed, the intellectual infrastructure remains in place. The same economists who provided Greenspan his "very considerable evidence" are still running the journals and still analyzing the world using the same models that were incapable of seeing the credit boom and the coming collapse.
Rosner, the Wall Street analyst who foresaw the crash
http://www.institutmontaigne.org/medias/documents/06-29-01%2...
Take the case of Alan Blinder. Though he's squarely within the mainstream and considered one of the great economic minds of his generation, he lasted a mere year and a half as vice chairman of the Fed, leaving in January 1996.
And celebrity is no shield against Fed excommunication. Paul Krugman...
.......................................................
Ron Paul was not mentioned, and I know that Michael Moore's movie against capitalism is coming out, and I can't help but get a feeling this is a primer, or what will become a bookmark, and the names I pulled from the article are going to become the left's new shining stars, when it comes to establishing a Global Central bank, where I believe we are heading.
I only read one page of comments and did not see an inteligent response or any debate worth mentioning.
Excellent article and should be counterpunched.
This not only happens in economics ...
It happens in every venue of life ... we have dumbed down economics, dumbed down science ... dumbed down people. We live in a dumbed down world, paid for by you and me with money the Fed stole from us.
The Rothschilds and Rockefellers know exactly what effects they wish to accomplish with their filthy bribes. All the universities which take federal money are under their thumb. They teach what the money masters insist they teach and they ostracize any who try to teach the truth. All the corporations who require loans are under their thumbs. They support what the money masters insist they support (homosexuality, abortion, etc.) in spite of the fact that it's contrary to their bald-faced best interests to do so. One example: Johnson & Johnson, maker of baby products, supports abortion. Does this make any sense in a sane world?
For those who've swallowed the overpopulation myth and attribute J & J's policies to altruistic motives. Puleeeze! As baby boomers die off, the world will experience a draconian drop in population. Japan has never recovered because it is losing population. 69 other countries are below replacement levels and are dying. The only reason for a vibrant economy is population growth. Stop that and you stop your economy from growing. In the US, the only reason we are doing as well as we are is because of immigration ... much of it illegal. Any wonder they won't close the borders?
Kill the Fed before it kills all of us!
I liked the article, but I
I liked the article, but I hate how the media is still trying to canonize Krugman...
wow!
great article.
Ron Paul is my President
Ron Paul is My President
yep
Obama = O.ne B.ig A.ss M.istake A.merica
Obama = O.ne B.ig A.ss M.istake A.merica
This article needs to go viral!
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The Fed keeps many of the influential editors of prominent academic journals on its payroll. It is common for a journal editor to review submissions dealing with Fed policy while also taking the bank's money. A HuffPost review of seven top journals found that 84 of the 190 editorial board members were affiliated with the Federal Reserve in one way or another.
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"I truly wish that real life would no longer surpass the worst excesses of my nightmarish imaginings... Arthur Silber **
"I think we are living in a world of lies: lies that don't even know they are lies, because they are the children and grandchildren of lies." ~ Chris Floyd
I believe this reveals why RP was censored
and Ralph Nader, who has never been a friend of the fed.... it makes me wonder about Ross Perot...
Good point Liberty_Belle
It's easy to find out
* Anytime you see a Fed Apologist article just google the author, economist, institution or publication...almost always you will see a Fed Reserve connection!
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"I truly wish that real life would no longer surpass the worst excesses of my nightmarish imaginings... Arthur Silber **
"I think we are living in a world of lies: lies that don't even know they are lies, because they are the children and grandchildren of lies." ~ Chris Floyd
Let's keep this on the page
Hopefully it'll get on the RSS feed.
I put it on the front. This
I put it on the front. This is a blockbuster.
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yeah
good plan
This is sweet
Finally someone connecting the dots