In his most recent letter to Berkshire Hathaway shareholders, Warren Buffett used a variety of logical fallacies and enormous economic ignorance to disparage gold. Buffet wrote,
Over the last two blog posts - not the last two weeks because of my on-going move to Texas!
In science, if a theory leads to a result that is not confirmed in nature, then the theory - regardless of how elegant it might be or in spite of the academic pedigree of the person advancing it - is instantly dismissed as bogus. The same criterion obviously does not apply to economics, or the bogus theories economists confidently advance as subtle truths. A foundational aspect of modern econ
One of the myriad ways the social science of economics differs from the hard sciences of physics, engineering or mathematics is the tenacity with which ideas long since proven incorrect are maintained as subtle truths. Even after an idea has been repeatedly shown to be incorrect or fraught with all sorts of economic risk, economists continue to revisit it and recommend its implementation. Whi
This week's blog post is a continuation from last week's. In last week's blog post Alan Greenspan's "irrational exuberance" speech from December 1996 was reviewed. The speech made it clear that Alan Greenspan attempted to perform the role of the sober chaperone recommended by former Fed chair William McChesney Martin. However, performing this role would have almost certainly cost Greenspan a