The Traders Crucible

Here is a list of “experts” who do not understand how our monetary system works.  Some of them are quite prominent.  Others are less well known.  In any case, we cannot let ourselves forget these people are enemies of prosperity:

David Faber 11/05/2011:  ”Google has a better chance of paying its debts than the U.S. Government.”

David Stockman 5/18/2011: U.S. has “run out of runway” on Debt

Laurence Kotlikoff 8/10/2010: Bloomberg Article, U.S. Is Bankrupt and We Don’t Even Know It

Moody’s:  Multiple, ongoing Infractions, and just plain boneheaded-ness.  Here they are warning about downgrading Japan.

Niall Ferguson:  He claims austerity works and compares the potential for a Greek default to the potential for a U.K. default. Multiple, ongoing infractions.

Reinhart and Rogoff, “This Time it’s Different”:  For cherry picking data modern era data to show that high debt creates low growth, and for releasing a book about high debt loads in the middle of the greatest worldwide demand vacuum in the last 80 years.  They are professional economists and must have known that a few data points from just after the end of WWII were skewing the data.  If I saw it in under 1 minute, of course they knew about the outliers as well.

Then , they claimed the U.S. defaulted 4 times since it founding.  Go here to find out why this is not true.

Zerohedge: Ongoing, Multiple Infractions

The 150 economists who signed a letter supporting spending cuts accompany any raise in the debt ceiling raise:  You’d think that professional economists would understand the basics of sectoral balance accounting.  You’d be wrong.  They support job destroying spending cuts.  Not only that, they are such wimps they use the term “spending reforms” instead of what they mean – tax hikes.