Gian Pablo Villamil

Gian Pablo Villamil

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Archive for Economics

Economics is a mystery cult, not a science

The sudden (and inexplicable to a lot of people) collapse of the global economy has revealed that no-one really knows what’s going on, and as a result, people are turning to religion, directly pleading with supernatural entities to fix things.

I suppose, given that we’ve figured out the motion of heavenly bodies, and that weather is better understood, the economy can now become the focus of religion: it is chaotic and complex, hence not predictable, and it has occasional catastrophic effects on the lives of everyday people. Unlike astronomy and weather, economics is entirely man-made, the sum of the actions of people.

Here’s some examples of religion trying to solve economic problems: Detroit churches asked for “God’s bailout” for the auto industry:

Image from NY Times

Image from NY Times

And of course, who can forget the incredible sight of evangelical Christians praying to a Golden Bull? As numerous people have pointed out, the last time a bunch of people prayed to a Golden Calf to save the day, things didn’t work out so well…  a “stiff-necked people” indeed.

Image from Wonkette

Image from Wonkette

A Possible Future

This extremely thorough spoof of the New York Times was distributed today to over 1.2m people. It’s an elaborate exercise in creating an alternate reality – by getting people to think of these things, of the possibility of an end to the war in Iraq, free health care, etc. it makes them more conceivable, and hence more likely.

I signed up through the project’s “secret” website, and distributed a few hundred of them in the East Village. Most people didn’t really notice anything different, but by about noon people had heard about the project and were eager to get their hands on the fake papers!

This week in finance: I Go Chop Your Dollar

“I go chop your dollar, I go take your money disappear…”

A popular hit in Nigeria, by Osofia, about the 419 scams which make up a significant part of the economy there. The US is not far behind.

YouTube Preview Image

I Go Chop Your Dollar

I don suffer no be small
Upon say I get sense
Poverty no good at all, no
Na im make I join this business
419 no be thief, its just a game
Everybody dey play am
if anybody fall mugu, ha! my brother I go chop am

Chorus

National Airport na me get am
National Stadium na me build am
President na my sister brother
You be the mugu, I be the master
Oyinbo I go chop your dollar, I go take your money dissapear
419 is just a game, you are the loser I am the winner
The refinery na me get am,
The contract, na you I go give am
But you go pay me small money make I bring am
you be the mugu, I be the master… na me be the master ooo!!!!

When Oyinbo play wayo, them go say na new style
When country man do im own, them go de shout bring am, kill am, die!
Oyinbo people greedy, I say them greedy
I don see them tire thats why when them fall enter my trap o!
I dey show them fire

Obama’s tax cuts

Very interesting chart from the Chartjunk blog showing the impact of Barack Obama’s tax plan, compared to McCain’s. It’s based on the same data as the Washington Post chart, but scaled to more accurately reflect the impact on real numbers of tax payers. Make sure to read the article to understand how the chart was drawn.

I’ve never seen a fundamental ideological difference laid out so clearly in numbers. Add to this the impact of the health care plans (skewed to help average and low-income earners in Obama’s, skewed towards high-income earners in McCains), and you can see two very very different futures for America.

For what it’s worth, I strongly support the Obama plan. A fair distribution of income prevents concentration of political power in the hands of the very rich, and leads to a healthier civil society.

Obama tax cuts benefit most Americans

Obama tax cuts benefit most Americans

“Rice, Death and the Dollar” at the Asia Times

Interesting article by Spengler over at the Asia Times, talking about the food crisis as a result of monetary factors.

“Rice, Death and the Dollar”

Whether or not you agree with him, his writing is certainly colorful:

The George W. Bush administration might as well have used the State Department as a set for the Jackass reality show.

Unlike many other commentators, he does not refer to biofuel subsidies in the US as a factor. I have seen little coverage of monetary factors underlying the food crisis, one of the few exceptions being an article in Al-Jazeera that quotes a UN representative, Jose Graziano, as blaming the food crisis on the weak dollar and speculation.