Redneck vs Harvard Business

It’s a bloody massacre, albeit not the way you might assume:

You must understand that the vast majority of the talking heads are Keynesian. That is.. they subscribe the few remaining theories postulated by John Maynard Keynes that have not quite been 100% proven incorrect just yet.

Now the Keynesians describe a recession like this… “demand no longer equals productive capacity because people have started storing up large cash reserves.”

So… recessions are bad… and they are what happens when companies are making stuff that people aren’t buying.. because those bad people have decided to save some of their money. Out of curiousity… Do you remember any massive rash of unified saving among your friends and family recently?

It’s always amusing to me when explaining the different economic theories to non-economists. Almost uniformly, they find themselves aghast at the absence of thereness at the heart of mainstream economic theory. In a delicious and apropos addendum, Nate goes on to kick the quants just for good measure.

[C]an someone explain why we should trust anyone that is off by 800% to even measure inflation.. much less predict it?