>>>The great body of the people, mentally incapable of comprehending, will bear its burden without complaint, and perhaps without even suspecting that the system is inimical (contrary) to their interests." <<<
I must confess to coming to a better understanding of banking later in life. I find reading economics challenging. I think that is because economists can't reason or express their arguments to save their lives.
Case in point: Saturday I was reading Mauldin who felt it opportune for a little tutorial on the velocity of money. I spent a half hour reading the thing and when I was done, I was in an uncomfortable..."well if you say so, it must be true,"...but I really walked away with a lot of doubts and less than a perfect deep understanding. Now comes MISH this AM to refute Mauldin (a friend of his) on Mauldin comments about velocity of money, the money multiplier, and fractional reserve banking. I liked what MISH had to say much better. But Mauldin, whom I like, is very well respected. MISH I believe is self educated in economics having been a computer jockey most of his career.
Economist are very bad at identifying assumptions. In engineering or science, when somebody makes an assumption, they do it in BIG BLOCK LETTERS, justify it, and then describe how their results will be affected if the assumption isn't quite correct. That doesn't happen in economics. Assumptions are stated as truths - which are obvious to earth worms, and should have been learned by age two.
Economics should be taught from the third grade. Rothschild might be correct that the vast majority of people are mentally incapable of understanding banking or central banking. Perhaps that is a failure of the educational system and not any organic lack of processing. Sometimes I wonder if the banks don't own the schools and intentionally keep people in the dark.
The net result is the same. Most people don't understand what the Central Bank does. That would include Greenspan and Bernanke. Oh. And Krugman.
One additional point. When I started reading von Mises and the Austrians, the clouds started to lift. Those people are articulate. |
