Posts Tagged ‘Egon von Greyerz’

What a doomer (finance only) U.S. presidential candidate might have said to voters if the truth were told, according to Egon von Greyerz (Britishisms noted):

Our nation is bankrupt. We cannot make ends meet and we need to eliminate Medicare/Medicaid, Social Security and Defence totally to balance the budget. That will save us $3 trillion which almost covers the 2020 deficit.

The problem is that we expect a bigger deficit next year. Covid is paralysing major parts of the country and will be very costly. It will also have permanent negative effects. In addition, we expect major problems in the insolvent financial system. This will necessitate the printing of further trillions of dollars or even tens of trillions.

But as we print these dollars, we get an ever bigger problem. The value of the dollar will fall precipitously and we will need to print and borrow even more. That will create a vicious circle with a lower dollar, bigger deficits and bigger debts plus inflation.

So these are the facts. I am obviously very sorry to present these to you but I am certain that there can be no other outcome.

I sincerely hope that you will elect me on this platform. After all, I am the only presidential candidate in history who has told his people the truth and the real state of the nation.

And please don’t believe the fake promises of the other candidate. A liar doesn’t deserve to be president.

Finally, I promise to do my best to manage the coming disorderly collapse of the USA to the best of my ability.

Well, dammit! Guess I’m gonna have to add a SWOTI tag after all. Obviously, I’ve been paying too much attention to bogus pronouncements by economists.

/rant on

Yet more fools stating confidently that climate change is not really a serious concern has me gasping in exasperation. Take, for instance, this astounding paragraph by Egon von Greyerz:

Yes, of course global warming has taken place recently as the effect of climate cycles. But the cycle has just peaked again which means that all the global warming activists will gradually cool down with the falling temperatures in the next few decades. The sun and the planets determine climate cycles and temperatures, like they have for many millions of years, and not human beings. [emphasis added]

So no climate change worries to disturb anyone’s dreams. Sleep soundly. I’m so relieved. All the effort expended over the past decades toward understanding climate change can be waived off with a mere three sentences by a motivated nonexpert. The linked webpage offers no support whatsoever for these bald statements but instead goes on to offer economic prophecy (unironically, of certain doom). For minimal counter-evidence regarding climate change, embedded below is a two-year-old video explaining how some regions are expected to become uninhabitable due to high wet-bulb temperatures.

The article ends with these brief paragraphs:

There is no absolute protection against this scenario [economic collapse] since it will hit all aspects of life and virtually all people. Obviously, people living off the land in remote areas will suffer less whilst people in industrial and urban areas will suffer considerably.

The best financial protection is without hesitation physical gold and some silver. These metals are critical life insurance. But there are clearly many other important areas of protection to plan for. A circle of friends and family is absolutely essential. [emphasis in original]

Ok, so I’m wrong: the guy’s not an economist at all; he’s a salesman. After placating one catastrophe only to trot out another, his scaremongering message is clear: buy gold and silver. Might not be a bad idea, actually, but that won’t protect against TEOTWAWKI. So whose eyes are deceiving them, Egon’s or mine (or yours)? He’s selling precious metals; I’m sharing the truth (best as I can ascertain, anyway).

The other idiotic thing to darker my brow was several actual economists asked about the economic effects of implementing Greta Thunberg’s dream world (sarcasm much?). If her dream world is spelled out somewhere, I haven’t seen it, nor is it provided (link or otherwise) in the article. Seems like the sort of invented argument attached to a trending name for the purpose of clickbait attacking the messenger and thus shooting down her message. However, let me be generous for a moment and suggest that efforts to stop climate change include, at a minimum, getting off fossil fuels, reforming Big Ag, and denying developing nations their quest to join the First-World Age of Abundance. Those are the three subjects discussed in the article. These economists’ conclusion? It will be, um, costly. Well, yeah, true! Very costly indeed. I agree entirely. But what of the cost if those things aren’t done? Isn’t that question implied? Isn’t that what Greta Thunberg has insisted upon? The answer is it will cost far more, though perhaps not in something as cravenly readily quantifiable as profit or loss. Referring again to the embedded video above, it will cost us the very habitability of the planet, and not in just a few restricted regions we can add to existing sacrifice zones. Widespread species dislocation and die-off will include the human species, since we rely on all the others. Some prophesy a human death pulse of monstrous proportion (several billions, up to perhaps 90% of us) or even near-term human extinction. Is that costly enough to think about the problem differently, urgently, as Greta Thunberg does? Might the question be better framed as the cost of not implementing Greta Thunberg’s dream world so that economists are sent off on a different analytical errand?

In the middle of the 19th century, Scottish satirist Thomas Carlyle called economics The Dismal Science, which description stuck. The full context of that coinage may have had more to do with slavery than poor scholarship, so in the context of lying or at least misleading with numbers, I propose instead calling it The Deceitful Science. Among the stupid habits to dispel is the risible notion that, by measuring something as a means of understanding it, we grasp its fullness, and concomitantly, what’s really important. I suggest further that most economists deceive themselves by performing a fundamentally wrong kind of analysis.

The issue of deceit is of some importance beyond getting at the truth of climate change. Everything in the public sphere these days is susceptible to spin, massage, and reframing to such a degree that an epistemological crisis (my apt term) has fundamentally altered sensemaking, with the result that most nonexperts simply don’t know what to believe anymore. Economists are doing no one any favors digressing into areas beyond their Deceitful Science.

/rant off