18 January 2011

If You’re Going to Believe a Lie…

It may as well be a profitable lie:

“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.
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.

This article highlights the reason that I often ignore mainstream economic analysis:  most analysts are only looking to keep their job.  There isn’t anything inherently immoral about this decision, but it does mean that their analytical framework is often going to be clouded by what their employer, in this case the Federal Reserve, wants to hear.

Since Ron Paul, among many others, has thoroughly discredited the idea of a fiat currency, I see no reason to listen to those who would still defend such a system.  Furthermore, I see no reason to trust them.

No comments:

Post a Comment