The woods are full of benighted economists in power. Here’s another one: Adam Posen. He is a thoroughly credentialed member of the elite Establishment (Harvard, Council on Foreign Relations, Trilateral Commission, etc.) At the same conference as Kohn, he asked “Why has all this [sic] lower short-term interest rates failed to make the economy go go go?”
He has the same mistaken and oversimplified model in his head, which is that investment and output are simple functions of interest rates. This is not the case.
His ignorance didn’t stop him from calling for more inflation: “He argued that policymakers in Europe and the United States should waste no time in extending asset purchase programs to spur growth.”
If common people want matters to improve, they have to get out from under establishment-run governments and people like Posen, Kohn, Bernanke, Obama, Clinton, Bush… They have to get out from under fiscal and monetary policies being imposed on them by central powers. They have to realize that these experts are hurting them and they have feet of clay. They have to defang their governments. They have to drastically reduce their powers.
11:19 am on September 5, 2012
