Tuesday, May 03, 2011

John Mauldin Joins Bill Gross In The Long Line Of Clueless Financial Minds

There are countless people in the financial industry that we have called out for their complicity in this mess.  And just as many have been bears as bulls.  As we have cited before, both groups are comprised of people who have supported an ideology as long as it benefited them.  And now they have finally figured out that exponential functions (debt-based money) can’t continue forever.  But even the bears in the financial industry see no way out.  Mauldin is one such person who exposes his views as ridiculous in this interview.   Mauldin is one of the people the great economist Joseph Schumpeter told us we need to get rid of to have a recovery.  They are unable to accept the truth and seek solutions outside of current ideology aka bureaucrats. 

Mauldin makes so many claims that are without merit in this video and story that he clearly exposes massively faulty thinking.  It is this massively faulty thinking by an industry that no one used to listen to, bankers and financial industry personnel, that is keeping us from recovery.  As we have cited before, when society lifts the position of a financial bureaucrat to pre-eminence, doom is just around the corner.  Finance used to be a position that was low on the national income pay scale as it is filled with administrators.   As financial lobbyists corrupted our government, the hot new career became that of the administrator.  

Let me just make a few remarks about Mauldin’s interview and claims.   First of all, he states needed (a completely erroneous claim) austerity will devastate the middle class.   Um, where has Mauldin been for the last thirty years?  The middle class has been getting killed since about 1980.   His remarks are thirty years too late.  He, like Bill Gross, is using rear view mirror analysis to divine the future.   (Linear thinking created by a deluded mind.)  A completely failed strategy.  

We, contrarily are bullish on the future because the fraud of the last thirty years, that Gross and Mauldin supported,  even if it was as useful idiots supporting a system that benefited them but was corrupt and destroyed society,  has been exposed and is completely unsustainable.  Of course, I am bullish only after we get the ship righted.  And that will most certainly devastate the investor class as we have cited repeatedly.   And that will have the effect of pushing people like Mauldin and Gross aside in the national debate.   Society will finally realize that listening to financial administrators for the last thirty years is a failed strategy.  A very good thing.

Mauldin tells us government is crowding out private investment and that if we cut government spending, the private sector will recover.  Well, technically he is accurate.  But he shows a clear misunderstanding of what the problem is.  BUT, if we had a new monetary system that benefited society instead of the privileged few bureaucrats, his statement would be completely without merit.  Mauldin is wrong.  As the system is designed today, if government spending is cut, our system will completely collapse.  The U.S.’s share of private income provided by government has increased 700% over the past thirty-odd years because people like Mauldin bought into a corrupt economic system that forced people on the public dole as they were stripped of their economic rights and self-determination.  Let me pull forward a remark we made a few times on here five or six years ago when Mauldin and other financial clowns were in the ozone with their views on the future and reality.  That is, there is no demand for capital in the United States.  Mauldin clearly doesn’t understand this.  And doesn’t understand without a new economic model, the Federal Reserve is therefore pushing a string up a hill and there will never be a recovery. 

Mauldin cites that raising taxes is necessary to save Social Security.  Another ridiculous statement that shows a complete lack of understanding of money.  We can have Social Security forever with a new economic model and monetary system.  And we will never have to raise taxes to support it.   And never is a very long time.  Never. 

The list of ridiculous assertions by Gross, Mauldin and other bulls and bears in the financial community are endless. There are countless people who can contribute tremendous knowledge to the national debate about how we fix this crisis.   But, you can’t win the national championship in any sport after having the worst season in history and keeping the same players and coaches for the next season.  It’s time for new players and new coaches.    These people have proven their worth in the market they worship.  They are worth nothing to you and me.  They are irrelevant.  And when the investor class implodes, as it started to back in 2008 and will again, their voices will never be heard again.   We will push them aside as failed coaches and players.  They led the United States to the worst economy in our history.  And their views on economics and monetary theory are complete claptrap.  

There are very, very easy answers to this crisis.  But they will be very unpopular with people like Mauldin and Gross because it will relegate them back to the low-paying administrative roles they are qualified to hold. 

Debt did not cause the Great Depression as we have written countless times.  Mauldin, Gross and others harping about our national debt and demanding austerity are doing society a disservice by unwittingly taking the focus off of viable solutions and the real issues that should be debated.   Of course, austerity would benefit both of them by keeping this massively fraudulent system going.   This surely isn’t the case for their ridiculous economic notions.  The case for that is really quite simple.  They just don’t get it.  They are clueless which is the reason why our economy blew up in the first place.

Title link here.

posted by TimingLogic at 12:02 PM