False prophets and contradictions

Daily Pickings has referred to cognitive dissonance - the process by which we adhere to beliefs in spite of contradictory evidence. Nowhere is this more evident across a profession than in economics. Economists are elevated to the status of a priesthood, preaching teachings which are demonstrably false.

In this presentation, Richard Werner demolishes the foundations of conventional economics with empirical evidence. Much economic wisdom is pure fallacy, not least because it assumes equilibrium which is clearly absent (everything changes) and that markets are efficient which they seldom are (market manipulation, high frequency trading etc.). The power of the short side merits special focus. For example, in employment relations, power is always with the employer because there are more people than jobs available.

Although the following video runs over two and a half hours, the presentation begins at around 10 minutes and finishes at 1 hour 25 minutes.

In the presentation, Richard provides a clear explanation of where most money in the economy comes from (bank credit) and demonstrates with empirical evidence that central banks are invariably responsible for economic crises.

Critical Thinking's analysis reveals concentrated power has corrupted the political economy and is equally pernicious whether vested in the state or private hands. The political economy is flawed, beyond the money system, and requires radical transformation to dissolve hierarchy and eliminate the three fundamental economic flaws.

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