Economics Hits a New Low

Economics isn't mathematics.  In fact, it can never be held as such a true discipline. But it should strive to be more of a science. However quite to the contrary, the entire field is fast becoming a joke. Economists who once used pure analysis of data and independent thought have been usurped by those who are political hacks or carry agendas needed to rescue damaged portfolios.

With each progressive day the level of competence seems to plunge. Yesterday on the tube I actually heard a "market strategist" claim that interest rates have nothing to do with the value of a currency. His one and only proof of the insane comment was that the US dollar rose last year without any such rate increases. Therefore he concluded that the dollar will rise even if the Fed kept rates at zero for ever. And the commentators actually let him get away with it all.

 I wish I could pull the clip up for you but in all honesty, I was too angry to remember his name. One can't come on a financial television network and say 1 + 1 = 3, but one can say something akin to; "Every time I eat chicken the dollar index rises, so therefore, since chicken is on the menu for tomorrow investors should be buying today."

I was also on CNBC yesterday and had the duty of debating Steve Liesman. Mr. Liesman claims inflation can't be an issue unless wages are rising (1 + 1 = 3). Tell the people of Zimbabwe that inflation isn't a problem because their wages have risen commensurately with prices. Then Steve claims inflation isn't a problem unless you can eat oil and copper and digest it without a problem.

Unfortunately I do have the clip from this one.