'Economists': OWNed by the Fed

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machinehead's picture
machinehead
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'Economists': OWNed by the Fed

Often I rant about the Federal Reserve's grey legions of hundreds of economists. Now there's an article which quantifies the Fed's corrupt, baleful influence over an entire academic field:

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.

"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."

By 1993, when former Fed Chairman Greenspan provided the House banking committee with a breakdown of the number of economists on contract or employed by the Fed, he reported that 189 worked for the board itself and another 171 for the various regional banks. Adding in statisticians, support staff and "officers" -- who are generally also economists -- the total number came to 730. And then there were the contracts. Over a three-year period ending in October 1994, the Fed awarded 305 contracts to 209 professors worth a total of $3 million.

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. Every single member of the editorial board is or has been affiliated with the Fed and 14 of the 26 board members are presently on the Fed payroll.

http://www.huffingtonpost.com/2009/09/07/priceless-how-the-federal_n_278...

Is anyone surprised that Soviet-style central planning produces Soviet-style conformity? Argue with the fiat-currency orthodoxy, and you get exiled to academic Siberia, to hang out with the ghost of Kondratieff.

Perhaps the saddest aspect of this article is that the only Fed "dissenters" they could identify were Alan Blinder and Paul Krugman -- two dyed-in-the-wool Keynesians whose only quarrel with Bernanke is over how fast to run the printing presses. True Fed opponents such as Ron Paul and Chris Martenson aren't even mentioned because -- of course -- they aren't credentialed "economists." And you can't be a serious "economist" unless you love Mom, America and the Federal Reserve. Not necessarily in that order.

When the full tally of the Fed's despoliations is prepared, let it reflect that the Fed left the U.S. not merely an industrial backwater, but an intellectual backwater as well. No serious monetary reform ideas issue from North America's somnolent, government-sponsored campuses. Our "economists" have been reduced to sycophantic courtiers of a criminal counterfeiting conspiracy, whose praises they earnestly sing on command. No wonder we're broke and poor.

xraymike79's picture
xraymike79
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Re: 'Economists': OWNed by the Fed

I read this article and posted a link to it the other day. Agree with everything you say. Love this phrase:

sycophantic courtiers of a criminal counterfeiting conspiracy

DrKrbyLuv's picture
DrKrbyLuv
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Posts: 1995
Re: 'Economists': OWNed by the Fed

Nice dig machinehead; and as usual, your comments are right on the mark and enjoyable to read.  The Huffington piece documents that propaganda has replaced economics. 

machinehead wrote:

When the full tally of the Fed's despoliations is prepared, let it reflect that the Fed left the U.S. not merely an industrial backwater, but an intellectual backwater as well...Our "economists" have been reduced to sycophantic courtiers of a criminal counterfeiting conspiracy, whose praises they earnestly sing on command. No wonder we're broke and poor.

Nice writing.  I think this is the biggest reason why the Fed has been with us as long as they have.  The Fed system is illogical - why do we, as a nation, borrow money from private banks when we have the sovereign power to issue it ourselves debt free.  

Thomas Edison explains in a few sentences what the Fed's hired heads write books trying to hide:

“If our nation can issue a dollar bond, it can issue a dollar bill.  The element that makes the bond good, makes the bill good also...Both are promises to pay, but one fattens the usurers and the other helps the people.  If the currency issued by the Government was no good, then the bonds would be no good either.  It is a terrible situation when the Government, to increase the national wealth, must go into debt."

Larry

Cloudfire's picture
Cloudfire
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Re: 'Economists': OWNed by the Fed
xraymike79 wrote:

Love this phrase:

sycophantic courtiers of a criminal counterfeiting conspiracy

Yup, that's what I like about Machinehead . . . He's got a solid analytical [left] brain, and simultaneously uses his creative [right] brain . . . That's a rare and remarkable trait . . . .

machinehead's picture
machinehead
Status: Diamond Member (Offline)
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Posts: 1077
Re: 'Economists': OWNed by the Fed

I woke up still laughing at the absurdity of the so-called Journal of Monetary Economics, staffed entirely with Federal Reserve ringers, lackeys, hitmen and imposters. And this is called a "must-publish" journal! Oh, my.

Kind of like a 15th century journal of astronomy, entirely staffed by geocentric theologians. "Earth-centered cosmologists welcomed -- others referred to the Commission for the Eradication of Heresy."

Or a journal of women's studies, entirely staffed by guys who are, or formerly were, men. "Of course we'll be objective, darling! We love women! Heck, my mom was one. My sister, too! Here, let me kiss your dainty hand, my dear ..."

Kiss

Seriously, isn't it time to teach Monetary Economics as a subset of Advertising and Public Relations? After all, fiat money requires belief. And managing belief involves the science of persuasion. Let us take up the cudgels of academic reform, comrades.

 

agitating prop's picture
agitating prop
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Posts: 854
Re: 'Economists': OWNed by the Fed

Lands sakes, Child! You're giving the womenfolk the virtual vapours, writing about the Fed!! That IS a rare talent!

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