MODERN ECONOMICS, AN EMPIRICAL VULGAR PSEUDO SCIENCE-

CAPT AJIT VADAKAYIL

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MODERN ECONOMICS, AN EMPIRICAL VULGAR
PSEUDO SCIENCE, JOHN GALT - CAPT AJIT
VADAKAYIL
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So the spider said to the fly, allow me into your parlour, you are in great danger, and only I can
save you. The fly opened the door -- Capt Ajit Vadaayil.
This post of for students of Economics.
Next time your professor tells teaches you something i college which you do NOT agree, speak
up. 99.99% of the time the teacher will NOT e ale to explain , as he himself is a rainwashed
!omie, elonging to the group who is trained to holler "# legs good $ legs etter"
%irst of all imagine that you are a group of oy scouts. TERRAIN MUST
PREVAIL OVER THE MAP, ALWAYS.
Economics is an emprical pseudo science where the re&erse happens, more often than not.
The father of Economics is a 'cotsman (dam 'mith.
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'o who is or rather who was (dam 'mith.
)e was the "one man think tank" to the owner of *ritish East +ndia ,ompany. -ather he was the
ad&iser to -oert ,li&e, the henchman of -othschild.. .uch later he would ad&ise -othschild on
how to set up his anking cartel and set up a lue print on how to control the world.
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-othschild/s agents in +ndia for the Opium trade were the filthy rich 0arsis in .umai, an *irls,
12 and party in ,alcutta. 'asoon who elonged to -othschild loodline, who operated from
*omay, kept a hawk/s eye.
The agents for the lack sla&e trade in 3'( was 10 .organ.
+n 456#, -othschild pre&ailed upon 'ir 1ohn 7ladstone to replace african lack sla&es with
+ndian +ndentured laour. Ne&er in the history of mankind has there een a saga of such greed
and in8ustice99 where more than 4.$ million innocent +ndians were duped whole sale , gi&en a life
sentence , dumped in far flung corners of the planet and forgotten for e&er.
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,hristian .issionaries were used deep in forests to lure trials. :6;;;; +ndians went to 7uyana
alone, while .auritius had 6:;;;; , .alaya $:;;;; and Trinidad had 4:;;;; coolies.
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(nd today we ha&e 'onia 7andhi and .anmohan 'ingh ha&e gi&en the same -othschild , a toe
hold 99 nay99 a dri&ers/s seat , y allowing %<+ in multi9rand retail, %<+ in insurance etc.
On the <ec $;, $;;# letter, the %(.=s foreign trade committee chairman ,handrakant T.
'hangh&i said that .anmohan 'ingh had categorically told a delegation of the traders= ody that
>we should not permit %<+ in retail trade? +ndia does not re@uire the kind of reforms which
would, rather than creating employment, destroy employmentA.
So all thi i Italia! "#$$! %$$& i'$a,
(i)ht *-- a!' Ma!+oha! Paa,i i -a($'
o. h$( *
*y the way our own 0. .anmohan 'ingh worked for a
-othschild financial concern efore he ecame +ndia/s %inance
.inister, as a part of re9orientation. )e was the 'ecretary
7eneral of the 'outh ,ommission, an independent economic
policy think tank head@uartered in -othschild anking cartel=s
home turf 7ene&a, 'wit!erland from 495B to 499;.
Our poor 0. ,handrasekhar was reduced to selling our 7old in
4994, and Corld *ank and +.% would NOT gi&e a loan unless
.anmohan 0aa8i was made %inance .inister. (nd later +talian
Dueen *ee 'onia would NOT ha&e anyone else except
"unelected" .anmohan 0aa8i as 0.99 going against the +ndian
,onstitution for a democracy.
-othschilds controls the 3' %ederal reser&e, all the ,entral anks of all the countries of the
world 99except Eiya, 'yria, +ran, North 2orea and ,ua. Eiya has een taken out. The next in
the pecking order is 'yria99then +ran.
-othschild also controls the +.% and Corld *ank. 'o, how does the +.% and the Corld *ank
workF
They put a country in det, in such a ig det it canGt pay it, and then they will offer to refinance
that det, and pay you e&en more interest, and you demand this @uid pro @uo which you call a
>conditionalityA or >good 0aa8i go&ernanceA. Their ouncers H nay9 watch dogs are 'I0, %itch,
.oody=s etc.
This process of manipulation y the corporato9cracy through the use of det, riery and,
political o&erthrow is called >7loali!ationA. 1ust as the federal reser&e keeps the (merican
pulic in a position of indentured ser&itude through perpetual det, inflation and interest, the
Corld *ank and +.% ser&e this role on a gloal scale.
The asic scam is simple. 0ut a country in det either y its own indiscretion or through
corrupting the leader of that country, then , impose conditionalities, or 'tructural (d8ustment
0olicies?often consisting of currency de&aluation, pri&ati!ation of state9owned enterprises trade
lierali!ation.. Or the opening up of the economy through remo&ing any restrictions on %<+ in
multirand retail or +nsurance sector or foreign trade. The rating agencies will gi&e low growth
ull percentages.
This allows for a numer of ausi&e economic manifestations? such as 1ewish Calmart and
.onsanto type transnational corporations ringing in their own mass produced products,
undercutting the indigenous production and ruining local economies? Today, countless farmers
are out of work, for they are unale to compete with the large corporations.
(nother &ariation is the creation of numerous, seemingly unnoticed, unregulated, inhumane
sweatshop factories, which take ad&antage of the imposed economic hardship.
The world is eing taken o&er y a handful of usiness powers as per the lue print of (dam
'mith , who dominate the natural resources we need to li&e, while controlling the money that we
need to otain these resources.
(dam 'mithF Cho the fuJk is (dam 'mithF
Economic students need NO introduction. )e is the father of Economics.
Ce +ndians need to know more aout (dam 'mith.
The *ritish soldier in +ndia thought that he was fighting for @ueen and country. (ctually simple
1ohn *ull shed his lood for a 7erman 1ew. -othschild had their own )essian merceneray army,
highly paid, who spoke no English. Chene&er secrecy ,deceit and co&ert operations were
in&ol&ed , without e&en the *ritish 0arliament and Dueen knowing aout it , -othschild used his
hessian -egiment . The spoils went into his underground cellar.
Opium traders -othschild took o&er +ndia officially &ide the *attle of 0lassey in 4B:B , and
stopped all pretense of eing traders, y ama!ing deceit which sprung from the warped rains of
(dam 'mith
%irst of all the trigger of the *lack hole of ,alcutta was cooked up . +t was tom tommed y
*ritish East +ndia ,ompany that Nawa 'ira8 3d <aula locked up 4#K *ritishers in a small dark
ill &entilated room, out of which 4$6 died. The truth is only :5 people were in the room , out of
which 49 died..
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(dam 'mith used his deception model to end the .ughal Empire in +ndia. There was supposed
to e a great heroic *attle of 0lassey in 4B:B, for the *ritish East +ndia ,ompany under -oert
,li&e to take o&er +ndia. The excuse was the incident called the *lack hole of ,alcutta. The
-othschild held media made a mountain out of the molehill. E&en today the world media and
)ollywood is controlled y -othschild cartel. The +ndian news on +ndian TL is -othschild spun.
The *attle of 0lassey itself is a huge lie. +t ne&er took place. )istory was fudged. +t is so easy
when you control the peer re&iewed media and pulishing houses. This is why you get the truth
on +nternet.
Early in 4B:K, 'ira8 3d <aulah had succeeded his grandfather (li&ardi 2han as Nawa of
*engal. 'ira8 3d <aula was killed efore e&en a single shot was fired y his rother9in9law and
army ,ommander .ir 1affar, who was ried y -othschild employee -oert ,li&e.
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.ir 1affar was made a stooge Nawa and in return he ga&e a lot of 'ira8 3d <aula/s gold and
diamonds for -oert ,li&e to take home personally in great secrecy. ,li&e wanted to s@uee!e
him more and when unale to milk him further, sho&ed off .ir 1affar and put his ri&al .ir
Dasim as the 'atrap.
(dam 'mith M orn : 1une 4B$6 H died 4B 1uly 4B9;N took ten years to write his economics
gospel y way of a ook >The Cealth of Nations > , pulishing it in 4BBK. . )e ne&er married,
and he used to walk like a ,)(22(. )e was delusional too, sometimes in a morid manner.
)e is also said to ha&e put read and utter into a teapot, drunk the concoction, upped his ante
and made a hue and cry o&er the @uality of tea . (nother time our man (dam 'mith without as
much as a >y your lea&eA went out sleep walking in his nightgown in road daylight and ended
up $# km outside of town, efore neary church ells rought him ack to reality.
)is house used to look like a garage dump as he hoarded e&erything.
.uch later in 4B99, -othschild would murder Tipu 'ultan , and then make a huge pretense of a
great war. *y now (dam 'mith was dead and gone. *ut the lue print was his alone.
The door of Tipu=s fort were opened y .ir 'adee@ on #th .ay 4B99. . (ll Tipu 'ultan loyalists
soldiers were sent away to stand in @ueue for wage distriution. Tipu 'ultan was ha&ing his food,
when he was killed y a single shot from close @uarters on his left cheek. )e was also staed
three times on his chest and later dumped outside on the field among the dead at dusk .
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.ir 'adi@ and his assistant .ir .oinuddin , who were ried y -othschild man Eord
Cellesely, were oth murdered y the *ritish and made it appear as if they were killed y Tipu
'ultan loyalists. 'o the *ritish made ousted 2ing Codeyar, rotting in Tipu/s prison , the new
king of .ysore.
-othschild is like 0hantom, The 7host who walks. Chen one 0hantom dies the son takes o&er
the empire.
-othschild took away Tipu 'ultan/s gold worth Trillions, in 6 ships which were waiting for
months to carry it away. This is the ase anking capital of Nathan -othschild. This gold was
stolen from the 2erala temples y Tipu 'ultan ,the fruit of K millenniums of spice trade. + am
from 2erala.
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+n a minor south 2erala 'ri 0admanahaswamy temple $: illion 3' dollars worth gold was
unearthed in 1uly $;44. The main &aults are yet to e opened due to security issues and a 8udicial
order. Tipu 'ultan was left alone y -othschild till e made a huge pile of gold y plundering the
temples of 2erala, using his half (ra half .alayali .uslim spies.
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.uch later Cinston ,hurchill , whose mother 1enny 1erome was -othschild, would use the
(dam 'mith model to start oth Corld Cars, to car&e out the state of +srael. )e used used
Eusitania M sister ship of Titanic N to drag (merica into the war in CC4 and 0earl )arour in
CC$. Today -othschilds owns most of +srael
7etting ack to the father of Economics99 (dam 'mith had O,< or osessi&e compulsi&e
disorder. )oarding is an effort to manage the anxiety raised y osessi&e douts. There will e
a disruption to feelings of self9worth, interpersonal relationships, occupation, or health as a result
of hoarding items which are worthless.. ( hoarder will ha&e an imaginary emotional connection
to all such garage. 0eople with personality disorders , generally, lame others for their
prolems. They are awful to work with ecause they don=t accept responsiility for themsel&es
and therefore ne&er change.
Chen such people write the gospel of economics, " The Ceath Of Nations" you know what you
will get. .uch later .ilton %riedman effecti&ely took many of the asic principles set forth y
(dam 'mith and the classical economists and moderni!ed them. This is the reason why
economists fall into the same hole again and again and again.
The hea&y part comes now99 let me crack a @uintessential "Economist " 8oke, to cheer you up.
These dorks are so full of themsel&es .
!"perienced economist and not so e"perienced economist are waling down #"ford street.
They get across shit lying on the asphalt.
!"perienced economist$ %If you eat it I&ll give you '(),)))*%
+ot so e"perienced economist runs his optimi,ation program on his I- procesor laptop and
figures out he&s .etter off eating it so he does and collects money.
Continuing along the same road they almost step into yet another pice of turd.
The not so e"perienced economist$ %+ow, if /#0 eat this shit I&ll give /#0 '(),))).%
After evaluating the proposal , our e"perienced economist eats shit and pocets the moolah.
They go on.
The not so e"perienced economist starts thining aloud $ %1isten, we .oth have the same amount
of money we had .efore, .ut we .oth ate shit. I don&t see us .eing .etter off.%
!"perienced economist$ %2ell, that&s true, .ut you overlooed the fact that we&ve .een just
involved in '3),))) of fucing trade.%
Take a reak 99 come ack and try and understand what + say. + am a percepti&e ship ,aptain. +
really don/t care for mother hen/s opinion as to how good the omelette on my reakfast plate is.
Now let me digress and gi&e you an rief introduction to the great (merican <epression of 49$#.
This is one of the holes + talked aout efore when all economists fell face down .
The international ankers mentored y -othschild installed a ,entral *ank in 4946?The
%ederal -eser&e. (nd as long as this institution exists, perpetual det is guaranteed.
3nfortunately, economics is often &iewed with confusion and oredom. Endless streams of
financial 8argon coupled with intimidating empirical mathematics @uickly affle and deter people
from attempts at understanding it. )owe&er, the fact is, the complexity associated with the
financial system is a mere mask, designed to conceal one of the most socially paraly!ing
structures humanity has e&er endured.
E&ery single dollar in your wallet is owed to someody y someodyO for rememer, the only
way the money can come into existence is from loans. Therefore, if e&eryone in the country were
ale to pay off all dets, including the go&ernment, there would not e one dollar in circulation.
+f there were no dets in (dam 'mith modeled 3' money system, there wouldnGt e any money.
Now, so far we ha&e discussed the reality that money is created out of det, through loans. These
loans are ased on a ank=s >-eser&esA and -eser&es are deri&ed from deposits. Through this
fractional reser&e system, any one deposit can create 9 times its original &alue, in turn deasing
the existing money supply, raising prices in society. (nd since all this money is created out of
det and circulated randomly through commerce, people ecome detached from their original
det and a dise@uilirium exists where people are forced to compete for laor, in order to pull
enough money out of the money supply to co&er their costs of li&ing.
(s dysfunctional and ackwards as all of this might seem? there is still one thing we ha&e
omitted from this e@uation? and it is this element of the structure which re&eals the truly
fraudulent nature of the system itself.
9The application of +nterest.
Chen the go&ernment orrows money from the %ed or when person orrows money from a
ank, it almost always has to e paid ack with accrued interest. +n other words, almost e&ery
single dollar that exists must e e&entually returned to a ank, with interest paid as well. *ut, if
all money is orrowed from the central ank and is expanded y the commercial anks through
loans, only what would e referred to as the Pprinciple= is eing created in the money supply?.
'o then, where is the money to co&er all of the interest that is chargedF
Nowhere. +t doesn=t exist. The ramifications of this are staggering, for the amount of money
owed ack to the anks will always exceed the amount of money that is a&ailale in circulation.
This is why +nflation is a constant in the economy, for new money is always needed to help co&er
the perpetual deficit uilt into the system, caused y the the need to pay the interest.
There are two ways to con@uer and ensla&e a nation. One is y the sword. The other is y det.9
1ohn (dams94B6:945$KN.
OO0' + went of tangent 99let me get ack to the 7reat (merican <epression of 49$#.
The nineteen twenties was a period of great prosperity in the 3nited 'tates.
The financial 8ackals decided that it is the right time to pull the rug from the feet of the gullile.
'chemes were laid down where y paying a small amount , you could uy almost anything ,
pro&ided you gi&e a monthly recurring payment99or in short put the common man in the &ice of
det.
The gullile common Qank had NO dang idea , of the dangers of det and high interest rates 99
and kept shopping merrily.
(d&ertising ecame part of the faric of (merican culture as ads dominated newspapers and
maga!ines99aout huge discounts and hassle free loans.
2eeping up with the 1oneses , social snoery and false studies con&inced consumers to uy
more.
Cith massi&e corporate growth, high employment and a post9war ull9market on Call 'treet,
first time (merican in&estors went on a stock9market uying spree.
E&eryone wanted a piece of this cake.
0eople ought stock on margin or credit for as little as 4;% down. They then used the stock as
collateral to orrow more money to uy more stock. Then they did it again. The market was a
free9for9all. +t was prosperity hea&en.
(lthough e&erything looked rosy, it was a castle made of sand and the great (merican party
ended on Octoer $9th 49$9 when the stock market crashed and caught e&eryone off guard.
E&eryone except the 1ew -othschild money ag insiders and their financial 8ackals 99that is.
+n (pril of 49$9, 0aul Carurg, the father of the %ed, sent out a secret ad&isory warning his
friends that a collapse and nationwide depression was certain, then in (ugust of 49$9 the %ed
egan to tighten money.
)uge financial Call 'treet giants were forewarned in secret of the incoming tsunami .
1ohn <. -ockefeller, 1.0. .organ, *ernard *eruch and all the %ree .asons M read as the old
Opium running partners of -othschild familyN got out of the stock market 8ust efore the crash
and put all their assets in cash or gold.

On Octoer $#th, 49$9, the ig NQ ankers called in their $#9hour roker call loans. This meant
that oth stockrokers and customers had to dump their stocks on the market to co&er their loans,
no matter what price they had to sell them for. (s a result, the market tumled and that day was
known as "*lack Thursday".
,urtis <all, a roker for Eehman rothers, was on the floor of the NQ stock exchange the day of
the crash. +n his 49B; ook, "%<-R my exploited father in law", he explained that the crash was
triggered y the planned sudden shortage of call money in the NQ money market.
Cithin a few weeks, S6 illion &anished into thin air. Cithin a year, S#; illion &anished.
*ut did it really disappearF
Or was it simply netted y the financial 8ackalsF
(nd what did the %ed doF +nstead of mo&ing to help the economy out, y @uickly lowering
interest rates to stimulate the economy, the %ed continued to rutally contract the money supply
further, deepening the depression.
*etween 49$9 and 4966, the %ed reduced the money supply y an additional 66%. The %ederal
reser&e engineered the great <epression.
*ut the money lost y the common Qank during the depression, didn/t 8ust &anish. +t was lined
the nests of the 8ackals who had gotten out 8ust efore the crash and had purchased gold, which is
always a safe place to put your money 8ust efore a depression.

%ollowing the crash the great depression put 4/6 of the 3' workforce out of work.
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The anks foreclosed on property and took possession of peoples/ homes and farms. Chen
panicked citi!ens lined9up at anks to withdraw their hard earned sa&ings, the anks ga&e them
only 4;c on the dollar.
)omeless and desperate, many (mericans set up tent cities and roamed the rails looking for
work.
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,ongressman Eouis .c%adden, chairman of the )ouse *anking ,ommittee, claimed the crash
was planned y the international ankers who sought to ecome rulers of us all. +n his famous
496$ ,ongressional address he said ".r. ,hairman, we ha&e in this country one of the most
corrupt institutions the world has e&er known. + refer to the %ederal -eser&e *oard and the
%ederal -eser&e anks. The %ederal -eser&e *oard has cheated the people of the 3nited 'tates
out of enough money to pay the national det 6 times o&er. This e&il institution has impo&erished
and ruined the people of the 3nited 'tates through the defects of the law in which it operates and
through the corrupt practices of the moneyed &ultures who control it.
The common Qank thinks the %ederal -eser&e *anks are go&ernment institutions. They are not
go&ernment institutionsO they are pri&ate credit monopolies which prey upon the people of the
3nited 'tates for the enefit of themsel&es.
%ollowing a series of death threats, .c%adden was finally poisoned and done in y the 8ackals.
.urder99 yes99 you are dealing with ex9drug runners and sla&e traders, rightF
Economics has done a poor 8o of understanding the economy, as demonstrated y the failure of
metrics, statistical collection of data , academic monitoring . Not a single Economical 'cience
expert out of millions could predict the $;;5 recession, despite indications to the contrary.
Economics fails ecause it can only understand the economy in astract terms, and so it is seen
clearly. Economics appears to primarily study large corporations and small usinesses with the
catchall term of >firms.A
+ can see that you are pretty depressed y now99let me tell you another 8oke, while you ha&e your
coffee.
%or what follows after the 8oke will e pretty depressing and you will get terrily angry at the
C(Q' O% T)E 0+E< 0+0E-.
An American .aner needs to go for a crap , and so he stops at the .est motel in town
in #lahoma .
4e tells the motel owner at the reception that he needs to stay overnight, .ut he has to chec out
the .est room first, and only if it suits his standards, only then , he will stay overnight.
The owner agrees, taes 5)) dollars from him as a refunda.le deposit, and the traveller goes up
to chec out his room.
6eanwhile the motel owner races to the town7s resident whore and returns the 5)) dollars he
owes her. The whore rushes to the tailor and return 5)) dollars she owes him. The tailor rushes
to the .utcher, the .utcher rushes to the tavern owner etc etc8this 5)) dollar changes hands
several times , .efore the 5)) dollar .ill comes .ac to the motel owner via the local .lacsmith
who had used the motel several times.
The traveller meanwhile declares that the motel room is .elow his standards, 9 .ut he used the
toilet for a nice crap :uietly ; collects his 5)) dollars .ac from the motel owner , gets into his
car and drives away. +ow8
!very .ody has .enefitted8the traveller had his free crap at leisure, the entire town have
repayed their de.ts in a 6!<</ =# <#0+> 2A/ , and is looing forwards to a .etter future
with renewed confidence.
This is how the American system wors.
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'ince 99% of my readers are NOT economists , + must gi&e them a rief run down of what this
pseudo science is all aout.
(dam 'mith M4BBKN defined what was then called political economy as "an in@uiry into the
nature and causes of the wealth of nations".
Economics is a study of man in the ordinary usiness of life. +t en@uires how he gets his income
and how he uses it. +t is a science which studies human eha&iour as a relationship etween ends
and !e scarce means .
Economics is the social science that analy!es the production, distriution, and consumption of
goods and ser&ices. 0ositi&e economics Mdescriing "what is"N, normati&e economics
Mad&ocating "what ought to e"N , .ainstream economics Mmore "orthodox" and dealing with the
"rationality9indi&idualism9e@uilirium nexus"N and )eterodox economics Mmore "radical" and
dealing with the "institutions9history9social structure nexus.
Economists use gross domestic product M7<0N to keep track of how an economy is doing, which
is a flawed way. 7<0 measures the &alue of all final goods and ser&ices produced in an economy
in a gi&en period of time, usually a @uarter or a year. 'o a recession occurs when 7<0 is
decreasing. ( oom occurs when 7<0 is increasing.
The assessment of economic growth ased on 7ross <omestic 0roduct is a fallacy, ecause 7<0
is merely a measure of the amount of money in an economy. The one thing it does not measure,
which is central to economic progress Mnote progress, not growthN, is the le&el of entrepreneurial
acti&ity in a country like +ndia. <on=t elie&e me , 8ust take a flight to ,oimatore or Eudhiana .
This has important implications for the efficacy of go&ernment inter&entions and solutions to the
current economic crisis.
On a ship + 8udge an officer y his future potential. NOT y what he did in the past. (t sea we
look ahead and we do NOT look too much into the rear.
7<0 is asically the sum total of recorded usiness acti&ity at the consumption le&el plus
go&ernment spending expressed in money terms. +f the go&ernment spends more, 7<0 risesO
gi&e more money to consumers, 7<0 risesO gi&e more ank credit to consumers or usiness,
7<0 rises. ,ut go&ernment spending, 7<0 falls. This is not contentious and has nothing to do
with economic progress. +mportantly, it excludes future entrepreneurial acti&ity, except to the
extent that an entrepreneur has actually spent some money putting his future plans into action.
The osession with 7<0 means that entrepreneurial acti&ity, which is (dam 'mith=s unseen hand
that guides our future, is in&isile to economic planners.
.isleading statistics such as 7<0 are leading all go&ernments into ad policy decisions, and
their choice has narrowed down to either e&er9greater reflationary attempts to pump up 7<0, or
alternati&ely facing a collapse in the 7<0 numer as ank credit contracts.. The twin errors of
misunderstanding 7<0 are the failure to see that monetary inflation is concealing a deepening
economic depression, and it encourages policies that destroy entrepreneurial acti&ity, or
economic progress itself. This is a deadly comination, the e@ui&alent of eing in a hole and
continuing to dig.
Ce cannot expect politicians to stop digging deeper and faster when their economic ad&isers are
calling for more sho&els. (ll politicians are fully committed to the fallacies that result from
confusing 7<0 with economic progress. They pursue economic policies that are the e@ui&alent
of eating their own children.
.icroeconomics is generally the study of indi&iduals and usiness decisions, while
macroeconomics looks at higher up country and go&ernment decisions.
.icroeconomics focuses on supply and demand and other forces that determine the price le&els
seen in the economy. +t examines the eha&ior of asic elements in the economy, including
indi&idual agents Msuch as households and firms or as uyers and sellersN and markets, and their
interactions.
.acroeconomics does not adhere to a &alid scientific method and supporting e&idence cannot e
sufficiently pro&ided as there are so many factors which are totally ignored. .ost theories lack
any plausiility This is the field of economics that studies the eha&ior of the economy as a
whole , entire industries and economies. This looks at economy9wide phenomena, such as 7ross
National 0roduct M7<0N and how it is affected y changes in unemployment, national income,
rate of growth, and price le&els.
.acroeconomics would look at how an increase/decrease in net exports would affect a nation/s
capital account or how 7<0 would e affected y unemployment rate. .acroeconomics
analy!es the entire economy and issues affecting it, including unemployment, inflation,
economic growth, and monetary and fiscal policy. +t examines the economy as a whole to
explain road aggregates and their interactions "top down", that is, using a simplified form of
general9e@uilirium theory.
'uch aggregates include national income and output, the unemployment rate, and price inflation
and suaggregates like total consumption and in&estment spending and their components. +t also
studies effects of monetary policy and fiscal policy. .acroeconomic analysis also considers
factors affecting the long9term le&el and growth of national income. 'uch factors include capital
accumulation, technological change and laor force growth.
The microeconomics upon which modern macro has now een founded is indeed ull ut if we
do the micro right, then we can come up with non9ull macro. Chen the computer takes in
.icro crap, the output .acro crap will still e crap.. .aye we can come up with slightly etter
macro than what we=&e got now, ut the underlying micro is ne&er gonna to e right. Economics
is haunted y more fallacies than any other study known to man. 0roaly Economics must e
taught aout culture and human eha&ior, there can e no generalisation here.
The ottom line is that microeconomics takes a ottoms9up approach to analy!ing the economy
while macroeconomics takes a top9down approach. Ce must sho&e in food through the right
orifice and excrete it from the right orifice.
.odern economics has degenerated into a &ulgar pseudo9science. Economists could no more
explain periodic trade depressions than to predict them.
Economics is a pseudo9science and economists are its alchemists. The rating agencies are 8ust
the mo muscle for the financial companies. +n case a -othschild ank needs to s@uee!e the
aJJs of a "client" 8ust get the >pet dogA rating agency to threaten to downgrade a little it. Ce
li&e in the age of the economic engineer, where e&erything means nothing and nothing means
e&erything. 0ick a numer, any numer, and do what you like to it.
Crong9headed economics was the cause of the financial crisis. +t has rought us a mountain of
det. +t has encouraged us to waste the world=s resources without much thought for the
conse@uences. +t is ehind the rise in indi&idualism and the weakening of many democratic
principles. +t has warped our ideas of charity, social responsiility and progress.
Ce need to ditch many modern economic ideas. Notions aout the free market, competition,
regulation and trade need to e reconsidered. Ce need a different measure of progress. Ce need
to put oursel&es, our societies, ack at the core of what we want to achie&e. .odern economics
has fallen short. +t has widened the gap etween rich and poor.
+t has not allocated the world/s resources fairly. +t has rought the Cest to the rink of financial
ruin. +t has placed short9term gain efore long9term progress. (nd it has made us focus on the
indi&idual, not the society. The end result is a worldwide financial crisis of epic proportions and
a planet eing scraped clean of the resources needed y future generations, and things are only
getting worse.
The authorities could no longer calculate the risks and started relying on the risk management
methods of the greedy anks themsel&es99 or to e more precise highly paid akers co&ering
their own asses.
( pseudoscience is presented as scientific, , it lacks supporting e&idence and cannot e relialy
tested. <ue to the sheer scale and complexity of national, regional and gloal economies, no
macroeconomic theories can e relialy tested. The economy is so complex that
macroeconomists massi&ely simplify it in order to try and make some data fit their theories.
Economic models are almost totally useless, as there are trillions of factors which affect the
economy constantly. This is like calculating the 'hear forces and ending moments of a complex
ship meant to ply stormy oceans , using a rectangular arge in still haror waters.
Economics contain @uite complicated ,alculus and .ath e@uations that 8ust happens to ha&e
little or nothing to do with what it/s supposed to pro&e. To suggest economies were not generally
efficient would e heresy in many classes. Qou see (matya 'en=s wife Emma is now glorifying
(dam 'mith. (fter all he was a ser&ant of her family.
+ndian Noel pri!e winner , (martya 'en/s third wife is Emma -othschild, who is the direct
lood sister of (mschel .ayor 1ames -othschild.
*engalis who were NOT playing all and resisting Opium
culti&ation in their fertile fields were foridden to plant rice.
This was on (dam 'mith=s ad&ise to Carren hastings.
/
+n 4BK9, there was a great famine delierately introduced and
sustained killing more than 4;.$ million M 4$; lakh N *engalis.
/
?@amine has never risen from any other cause .ut the violence of government attempting .y
improper means, to remedy the inconvenience of dearth.A H (dam 'mith
(dam 'mith talks ao&e, aout the *engal famine, he initiated which killed 4;.$ million
*engalis. Carren )astings was crucified.
/
(dam 'mith had a painful death after this e&ent9as di&ine
retriution
/
Chat an king si!ed assholeT
.uch later in 49#6, -othschild stooge Cinston ,hurchill would delierately star&e :.# million
*engalis as &icious retriution to the decision of 'uash ,handra *ose to form +N( and 8ump
oats in mid9ri&er from the *ritish side to the 1ap side.
(s soon as (martya 'en won the Noel pri!e in 4995 for Economic sciences 4;.# lakh *engalis
delirious with 8oy had taken out a rally on the streets of ,alcutta, dancing for hours. )is
-othschild wife Emma rewarded him for white washing the war crime of her own family
-othschild and Cinston ,hurchill . (martya 'en/s third wife is Emma -othschild, is the direct
lood sister of (mschel .ayor 1ames -othschild.
*engalis were prohiited to plant food and all their oats . E&en ullock carts and elephants were
confiscated, as a scorched earth policyM sicTN against 1ap in&aders.'tar&ing skeletoned people in a
terrily shocking condition started pouring into ,alcutta, y the millions . They would forage ,
fight o&er scraps , and eat any sort of garage .
/
)ere is what ullshit (martya 'en wrote in his ooks and told in all foreign TL channels till e
frothed from his cancer affected mouth.
5; There was ade:uate food in Bengal at the time of the great famine in 5C3D.
(; There was +# need for Churchill to send rice to India .
D; >iverting grain ships from Australia passing India enroute to Sue, Canal every few days, was
+#T necessary
3; Bengalis did panic .uying and greedy hoarding in a disgraceful manner.
E; The local administration consisting of mainly Bengalis were corrupt and inefficient in food
distri.ution.
F; 4ow incompetence and corruption can cause famine in a land of plenty.
-; <oot cause of famine was inflation and speculative hoarding .y Bengalis. It was +#T hoarded
.y British for the army.
G; @ood was stoced 5DH more in Bengal than in 5C3D than in 5C35. 4ence it was #I for
Churchill to e"port food from India.
C; @amine cannot e"ist in proper democracy. 9 India under princely states never had famine ;
5); 5C3D famine was a local Bengali man made thing. The incompetence was native +#T of the
British.
55; Bengali producers e"ported food.
5(; 2ages of la.ourers was +#T in par with food prices. !nough food was there , .elieve me, I
saw it in the local .ania godowns .
/
*elow is a @uote from (martya 'en/s warped way of thinking. .ind you, he used great &erosity
to affle us with his ullshit , supporting (dam 'mith.
D3OTE99 *ut (dam 'mith/s defense of pri&ate trade only took the form of disputing the elief
that stopping trade in food would reduce the urden of hunger. That does not deny in any way the
need for state action to supplement the operations of the market y creating 8os and incomes
Me.g., through work programsN. +f unemployment were to increase sharply thanks to ad
economic circumstances or ad pulic policy, the market would not, on its own, recreate the
incomes of those who ha&e lost their 8os. The new unemployed, 'mith wrote, "would either
star&e, or e dri&en to seek a susistence either y egging, or y the perpetration perhaps of the
greatest enormities," and "want, famine, and mortality would immediately pre&ail...."
3ND3OTE99 *E() *E() *E()99
/
Eet us imagine a +ndian oy king of 4$ is in charge of a kingdom threatened y famine 99 as it
has happened so many times in our history. )e knows that ee&en Napoleon cannot eat thrice the
amount of rice Mor staple food like potatoN he normally eats 99 we are NOT talking aout ca&iar
here. )e will know that all a&ailale food has to e immediately secured or sie!ed , y strict
monitoring. )e will make hoarding a death penalty. %or this he does NOT ha&e to search the
whole country, where 9:% people are hand to mouth 99"there goes one more day" pattern.
)e will prohiit any family from ha&ing more than a week of food stock in their houses. )e will
introduce a fair price rationing system for people elow the po&erty line. Chen it comes to the
crunch he will gi&e a royal order that only the king/s depots can sell rice. )e will make sure
epidemics are controlled , y ad&ocating alternate foods , instead of rice 99 as usually K;% of
famine deaths are y malnutrition related diseases. )e will eliminate waste. )e will do his le&el
est to import food. )e will lea&e no stone unturned to run sur&i&al kitchens.
)e needs no (dam fuJkin= 'mith theory, to sa&e his people.
(dam 'mith was responsile for the ,hinese Opium misery. +t was his idea.
)is theory was99 ELE-Q .(N +' (EEOCE< TO 03-'3E )+' )E<ON+'T+, <E'+-E' TO
( E(C%3E ,ON,E3'+ON, (N< T)(T O0+3. +' ( "EE7+T+.(TE 0-O<3,T" . M +f you
want to know what is )edonism , go to Negril 1amaica , and check out drugged orgies on the
open each in road daylight 99 own pleasure first T screw e&eryody else TTN (EE O*'T(,EE'
TO *3Q+N7 ,)E(0 (N< 'EEE+N7 <E(- .3'T *E -E.OLE<, C)+,) +' T)E ,O-E
O% 7EO*(E+'(T+ON...
Emma -othschild/s has also done a good 8o of white washing hedonist and East +ndia company
employee, (dam 'mith &ide her ook E,ONO.+, 'ENT+.ENT'.
/
'orry Emma99here is one in the eye for you, elow 99 M ao&e picture is of -ichard ,antillon N
(dam 'mith/s rilliance cannot e @uestioned with economists around you,unless you want to e
insulted. n. (ny errors he made were excused as the ine&itale flaws of any great +D asent
minded professor..
/(dam 'mith ties/ were worn as a adge of honour in the upper echelons of the -eagan
(dministration. Noody would wear a )itler tie, rightF
.arxists, hail (dam 'mith as the ultimate inspiration of their own %ounding %ather, 7erman 1ew
2arl .arx, who was related to -othschild.. +ndeed, if the a&erage person were asked to name
two economists in history whom he has heard of, 'mith and .arx would proaly e the
runaway winners of the poll.
(dam 'mith originated nothing that was true, and whate&er he originated was ull. (dam 'mith
was a shameless plagiarist, from the works of -ichard ,antillon.
.ayer (mschel M(nselmN -othschild, was orn in 1uddddenstrasse %rankfurt am .ain, 7ermany
in 4B##, and is held to e the founder of the famous )ouse of -othschild. *ut his money lending
father had financial interests in othe 7ermany and %rance.
-ichard ,antillon M4K5;s H .ay 4B6#N was an +rish9%rench anker and economist . )e wrote the
!ssai sur la +ature du Commerce en =JnJral MEssay on the Nature of Trade in 7eneralN, a ook
considered y Cilliam 'tanley 1e&ons to e the "cradle of political economy" .
<uring the late 4B4;s and early 4B$;s, ,antillon speculated in, and later helped fund, 1ohn Eaw/s
.ississippi ,ompany, from which he ac@uired great wealth.
/
,antillon was influenced y his experiences as a anker Essai is considered the first complete
treatise on economics, with numerous contriutions to the science. These contriutions includeR
his cause and effect methodology, monetary theories, his conception of the entrepreneur as a
risk9earer, and the de&elopment of spatial economics. (dam 'mith copied from ,antillon/s
Essai .
+n 4B4K, the %rench go&ernment granted him oth permission to found the *an@ue 7UnUrale and
&irtual monopoly o&er the right to de&elop %rench territories in North (merica, named the
.ississippi ,ompany. Essai was not pulished until 4B:: as a result of hea&y censorship in
%rance, it did widely circulate in the form of an unpulished manuscript etween its completion
and its pulication .
(dam 'mith lifted ,antillon=s sustenance theory of wagesVwhole sale.
(dam 'mith not only contriuted nothing of &alue to economic thoughtO his economics was a
gra&e deterioration from his predecessors.
The mystery of (dam 'mith, then, is the immense gap etween a trumped up reputation M ashe
rued shoulders with -othschild N and the sordid reality. The Cealth of Nations was made to
lind all men, economists and laymen alike.
The Cealth of Nations exerted such a colossal impact on the world thanks to -othschild and East
+ndia ,ompany, that all knowledge of pre&ious economists was lotted out, hence 'mith/s
reputation as %ounding %ather.
Enough of false god and plagiarist (dam 'mith and his reflected
rillianceT
,apitalism has to e understood and re8ected in its entirety. ,apitalists, do not create wealth.
Corkers do. Corkers are not dependent on the capitalist class ut could run society in their own
interests within common or co9operati&e ownership and democratic control. ,apitalists are
dependent on the exploitation of workers for their wealth and attached pri&ileges.
,apitalism enefits capitalists, not workers . ,apitalist economics is the employer/s set of ideas
and rules to keep workers in their place. Qou will not hear ,hancellors of the Exche@uer
lecturing the ,*+ to make less profit and gi&e workers higher wages ut you will always hear
,hancellors telling workers to e more producti&e and not to take increased pay rises and
onuses.. *ut one thing they do not ha&e is an understanding of is their own su8ect matter.
Economists students must ask how the profession had een lind to the fact that its theories were
leading people down the wrong path. The oft repeated paradigm that the market corrects itself, is
sheer ull. Economists assumption that e&eryone in an economy can orrow at the same risk9free
rate is pure ull.
Cithout a rethink, we face the end of growth. Ce face the end of progress. Ce face more
po&erty, greater conflict and rising ill9health. Eife expectancies will fall, as will standards of
li&ing. +n de&eloped countries, health care, sa&ings and pension promises will e roken. +n the
third world hopes for de&elopment will not e met. Tensions etween peoples will grow.
Ce ha&e to re9ground it in a new paradigm. ( new economics can only e originated y a new
outlook on &alue and wealth. The 7<0 cannot e considered a measure for the standard of our
li&es.
.odern Economists M especially the ones who snort ,ocaine N are strongly influenced y their
testosterone le&els.
.ainstream economic and financial models, the ones that currently rule the markets and
determine &alue, ha&e shifted their focus o&er the years from what is est for the society they
should try to model to what is mathematically possile to achie&e for maximi!ing enefit of a
few. .ost economists and financiers are nothing more than >hands onA mathematical laourers
and their models are pseudo science.
.ainstream economic and financial models pursue an idea of &alue that is di&orced from any
concept of the general wealth and well eing of human eings and society.
0re&ailing models are ased on a totally dri&en y the lust for indi&idual profit. These models
are rooted in the win9lose paradigm . They call it >competitionA and a gigantic and ineffecti&e
apparatus has een unfairly created to >ensureA fair competition.
The starting point is to define what the role of the go&ernment should e and which policies an
economic model should mirror. (ny go&ernment should first and foremost protect the freedom
of its citi!ens under the constitution. %or an +ndian who suffered 5;; years of sla&ery V it is
freedom from any risk of sla&ery. Ce do NOT want to e a anana repulic where each and
e&ery .inister and .0 of the ruling party is paid ries y huge corporations like Calmart ,
Ledanta or .onsanto.
Ce the flies must ha&e the aility to protect oursel&es from huge spider enemies and freedom
from tyranny. 0eople must ha&e the entrepreneurial freedom to start own small "pop and mom"
&entures and usiness. There must e a network of support for the de&elopment of any form of
free enterprise.
None of the economists are prepared to see the o&ious ecause it is not in their e@uations and
wish lists. ,rap in e@uals crap out, no matter how you dress it up in fancy maths which in any
case only a small percentage of people can understand. +t/s 8ust aout amoo!ling the masses so
they don/t @uery what ull they are eing told.
E&ery e@uation in neoclassical economics is ruish. The differential e@uations descrie
nothing. Economics is not aout mathematics, it is aout the human eing99 in a complex
country like +ndia. Lirtually all commonly held eliefs aout economics99whether espoused y
"affle them with ullshit" political acti&ists, politicians, 8ournalists or taxpayers99 are 8ust plain
wrong.
Economics will always e ullshit ecause it relies on the premise that human eings eha&e in a
systematic way, when they don=t. Ce cannot predict consumption/sa&ing/in&esting eha&ior in
long9lasting ways. ",ulture" is a inexplicale, chaotic force that makes economics hopeless.
There/s no guarantee that what may hold today will hold tomorrow. 'cience rests on the
assumption that the mechanisms of the 3ni&erse are stale. Chen that assumption fails,
economic science fails. E&en if the macroeconomy is incredily chaotic, the economists use
rute9force computer power to make short9term forecasts, like how weather forecasters do.
Economics pre&iously was not a &ery mathematical science, at least compared to the way it is
today. Economists used to write articles with &ery few e@uations, or e&en without any e@uations
at all.
0eople don=t understand complicated math, so economists can automatically win arguments with
someone who cant understand math. Nowadays, most papers on economics ha&e complex
e@uations in them. (ll economists ha&e to e ale to talk aout their ideas using grandiose
mathematical models and statistics, or other economists won=t respect them. This is part of what
is called eing ale to >think like an da!!ling economist.A
Economists still like wearing their 69< glasses after the 6< Titanic mo&ie is o&er and they dri&e
home to go to ed with great self importance.
Economics starts with assumptions and then tries to do &oodoo math with the assumptions. Chy
are the ignorant and low +D politicians and commentators who confidently speak economic
nonsense treated as sagesF (nd why do so many 8ournalists uncritically repeat their nonsenseF +f
not they may lose their 8os, rightF The news media la&ish on high9profile politicians and
pundits who affle people with confident ull with asolute certainty 99on matters aout which
their own words show they know nothing.
Too few people in pulic life understand economics, numers or algera. None of them did .ath
or ,alculus in college. )ardly any rememer, the crucial concept underlying matters of
economics and finance known as accounting identities.
(ccounting identities are statements that must e true no matter how you arrange the
components. Thus $W4X6 8ust as 694X$. Eikewise, net worth e@uals assets minus liailities 8ust
as assets e@ual liailities plus net worth and profits e@ual re&enue minus costs.
+ ha&e NOT yet seen an economist who can sol&e a simple math elow, which e&en a illiterate
chai9wala oy in ,alcutta can do.
Three friends go to a .ar for drining .eer 9 costing 5) dollars a .ottle ;
As usual they tae out one 5) dollar .ill each from their wallets and gives the waiter, D nos 5)
dollar notes or D) dollars.
The .ar owner is in a e"pansive mood and he tells the waiter -- %happy hour time* -- give them E
dollars .ac**-- i will charge only (E dollars for D .eers today %.
The clever waiter nows E dollars cannot .e split .etween D regular dutchmen. so he pocets (
dollars and returns D one dollar notes .
The three of them put .ac one dollar each into their respective wallets. Initially each wallet
had one 5) dollar .ill--now it has only one single dollar .ill.
Now comes the perception partR
(ll three of them spent 9 dollars each99 $B dollars total.
The waiter got $ dollars.
C)E-E +' ONE <OEE(- 7ONE99 0OO%FFF
*e honest to yourself and dont read further, till you figure this out.
Qou tell an accountant without perception to gi&e you a deit/ credit accounts statement99and see
the way he sweats.
'ee literacy has nothing to do with perception. ( illiterate chaiwala oy in mumai can make an
ass out of you, when it comes to accounts.
<aft accountants make a mistake when it comes to "receipts" and " alance ".
)ere in this case it is 9 6;W;X $BW6.
Opening cash W receipts X spent cashW alance cash. +t can ne&er e&er e 6;96W$X$9
'ee, you cant argue with dorks. $ dollars is something which happened in the mann mandir of
the waiter. )ow do you know that he stole $ dollars F (ccounting has to e o8ecti&e.
This is where the economists confidence goes for a toss.
+n economics, 7ross <omestic 0roduct e@uals consumer spending plus go&ernment spending
plus in&estment plus the net of exports and imports. Or in its simplest formR 'pending X Output
X +ncome. One can predict that , o&er the long term, if marginal costs exceeds marginal
re&enues, then a firm will go roke.
Economists are charlatans hired y politicians to push a particular point of &iew, mas@uerading
as sure science. 0oliticians know &ery well how to fix the economy, ut their masters, linded y
greed, refuse to let go. Our minds are raped with the scientific nonsense. +t is all aout greed.
That is the only element dri&ing our economic system, which is called capitalism, is greed.
/
Economic models try to simulate the real uni&erse of commerce, with idiotic assumptions ased
on ',(NTQ +N%O-.(T+ON , which of course will lead to stupid predictions. Natural science
models can predict more accurately ecause they deal with simple inputs. )uman eha&ior can
ne&er e&er e a simple input.
.odern economics is osessed with modelling. ( mathematical model is a predicti&e tool
created to demonstrate the outcome of e&ents in a o&er simplified alternate uni&erse.
.athematical economic theories cannot accurately predict the future. This is NOT a calculation
like low tide9high tide or sunrise9 sunset time.
0hysicists can &ery accurately model the tra8ectories of rocks in space. *ut economists cannot
accurately model the tra8ectories of prices, employment and interest rates down on the rocky
terrain. 'o they make the map more important that the terrain.
Economics V and economic decisions, from the macro to the micro le&el V is a human su8ect.
+t is sutle and psychological and sporadic. ( human su8ect re@uires human language, human
emotion, human intuition.
The grand theoretical9mathematical approach to economics is fundamentally flawed. Trying to
smudge the human reality of economics and politics into cold mathematical shackles is
degenerati&e.
The pseudo9scientific school of mathematical economics hungers and cra&es for a perfect world,
where each ri&er is the same, where there is no utterfly effect, where human preferences are
expressed in e@uation form, where there is no sutlety or amiguity or uncertainty.
Economics students waste 6 years, learning to fiddle with udget constraints and production
functions, and using constrained maximisation to sol&e irrele&ant prolems that are completely
detached from reality. They are gi&en completely aritrary utility functions and aren/t told why
those functions are appropriate to use. (nd then, when they ha&e sol&ed these archiac prolems,
they are told that it "pro&es" that the free market works, and that the price signal ensures
efficiency.
The whole purpose of economics is to 8ustify the status @uo, to act as apologists for
en&ironmental degradation, income ine@uality and neolieral capitalism. +f the student tries to
inno&ate with ethical arguments he is accused of not "thinking like an economist". )e is
supposed to argue on ehalf of the delusional (dam 'mith that throwing people out on the streets
is the rational policy to pursue.
+ honestly don/t see why economics continues to e taught . +t is a complete pseudoscientific
discipline with no redeeming features that has contriuted to a huge numer of prolems in this
world. +t/s no etter than withcraft, and it/s conse@uences are much more se&ere
Ce need people to start speaking out against this discredited "science" efore it damages any
more li&es.
The )uman -ace will only make progress once economics is no longer susidised and taught at
our prestigious uni&ersities, and is only mentioned in history classes as a prime example of a
discredited science from the past.
)ow can you 8ustify an academic discipline that/s sole purpose is to act as apologists for an
economic system that has failed a significant percentage of the world population and it/s inherent
weaknesses responsile for the worst financial crisis since the Call 'treet ,rashF +/m NOT
saying that we should only e taught .arxist theory, ut there is no alance in economics
whatsoe&er. The su8ect is completely di&orced from reality, and when empirical e&idence goes
against theories Mlike, as if if reality doesn/t correspond to right wing theory, it/s reality that/s to
lame. No proper science would operate like this.
Chene&er scholars from other disciplines try to deunk economic theories, they/re called left
wing idiots. Chen other heterodox economists criticise economics, they/re called cranks, without
any attempt to rationally deate their arguments. Economists lo&e presenting their work as
scientific howe&er, many of their theories can ne&er e&er e reliale tested, ecause people/s
"utility" functions simply cannot e measured in any sense
5;% of economics these days is empirical. Economics is a complete pseudoscientific discipline
with no redeeming features that has contriuted to a huge numer of prolems in this world.
+n science, theories and models are tested against reality. +f they are contradicted y confirmed
e&ents, theories are either modified or re8ected. +n the long run there is a winnowing out process
which selects one or a few theories as eing most proaly correct. +n a pseudoscience, no such
winnowing out occursR when confronted with strong e&idence against a pseudoscientific theory,
either the e&idence is dismissed whole sale or reinterpreted to conform to theory.
Or the theory is reinterpreted to make it consistent with the data. (andonment of the theory is
ne&er e&en an option. There has een no winnowing out of economic theories. Chen an
"impossile" e&ent occurs the theory is simply tweaked and reinterpreted to conform to the new
situation. 'o we ha&e unstale sky scrapers, too dangerous to li&e in.

Noody in thier senses will e&er say that that economics is e&en a science in the strictest
definition of the term. 'ocial 'ciences in general are not science in it=s strictest sense. To hold
economics or political science to the strictest scientific method is impossile..
0roduction of wealth should NELE- e tied to its distriution. The former is in the field of
"applied economics" while the latter elongs to "social economics" and is largely a matter of
power and politics.
E&en the est economists cannot make exact predictions aout future e&ents. Chat is the current
state of economics todayF ,ontemporary economics appears to rest in a state of polari!ation
etween two opposing philosophiesR capitalism and neo9.arxism. *oth are flawed.
Economics fails to take into account human nature as the greatest dri&er of eha&ior and when it
does, it does NOT understand culture and priorities .)uman nature is studied in the sufield of
eha&ioral economics, which essentially tries to explain why people are >irrational.A
Duantitati&e metrics, such as per9capita income and median income, are flawed, primarily
ecause they can easily e skewed y the higher wealth of small communities where wealth is
highly centrali!ed. Dualitati&e metrics and sociological examination are needed.
03T ON QO3- )E(< 0)ONE' (N< E+'TEN TO T)E L+<EO *EEOC99
)ow did the crash of $;;9 happenF
"UOTE R *efore the recession , the $;;$H$;;5 period encouraged high9risk lending and
orrowing practicesO international trade imalancesO real9estate ules that ha&e since urstO
fiscal policy choices related to go&ernment re&enues and expensesO and approaches used y
nations to ail out trouled anking industries and pri&ate ondholders, assuming pri&ate det
urdens or sociali!ing losses.
The 3.'. %inancial ,risis +n@uiry ,ommission reported its findings in 1anuary $;44. +t
concluded that "the crisis was a&oidale and was caused yR Cidespread failures in financial
regulation, including the %ederal -eser&e=s failure to stem the tide of toxic mortgagesO <ramatic
reakdowns in corporate go&ernance including too many financial firms acting recklessly and
taking on too much riskO (n explosi&e mix of excessi&e orrowing and risk y households and
Call 'treet that put the financial system on a collision course with crisisO 2ey policy makers ill
prepared for the crisis, lacking a full understanding of the financial system they o&ersawO and
systemic reaches in accountaility and ethics at all le&els.>
(uthor 3pton 'inclair M45B5H49K5N famously statedR "+t is difficult to get a man to understand
something when his 8o depends on not understanding it."
+n the years leading up to the crisis, the top four 3.'. depository anks mo&ed an estimated S:.$
trillion in assets and liailities off9alance sheet into these '+L/s and conduits. This enaled them
to essentially ypass existing regulations regarding minimum capital ratios, therey increasing
le&erage and profits during the oom ut increasing losses during the crisis. (s the shadow
anking system expanded to ri&al or e&en surpass con&entional anking in importance,
politicians and go&ernment officials should ha&e reali!ed that they were re9creating the kind of
financial &ulneraility that made the 7reat <epression possileVand they should ha&e
responded y extending regulations and the financial safety net to co&er these new institutions.
(s long as the damage caused to people, cultures, and ecosystems is not denominated in money,
it is in the realm of other, off the alance sheet. The same goes for usiness accounting, in which
costs can only e externali!ed when the payer is, again, off the alance sheetVan other. To the
extent that we identify with our communities, we cannot export costs to them.
*y pursuing his own interest he fre@uently promotes that of the society more effectually than
when he really intends to promote it.
/
The ha'o/ 0a!1i!) 2t$+ is the collection of financial entities, infrastructure
and practices which support financial transactions that occur eyond the reach of existing state
sanctioned monitoring and regulation. +t includes entities such as hedge funds, money market
funds and structured in&estment &ehicles M'+LN. +n&estment anks may conduct much of their
usiness in the shadow anking system M'*'N, ut most are not '*' institutions themsel&es.
/
The core acti&ities of in&estment anks are su8ect to regulation and monitoring y central anks
and other go&ernment institutions 9 ut it has een common practice for in&estment anks to
conduct many of their transactions in ways that don/t show up on their con&entional alance
sheet accounting and so are not &isile to regulators or unsophisticated in&estors.%or example,
prior to the financial crisis, in&estment anks financed mortgages through off9alance sheet
securiti!ations and hedged risk through off9alance sheet credit default swaps.
/
The &olume of transactions in the shadow anking system grew dramatically after the year $;;;.
*y late $;;B the si!e of the '*' in the 3.'. exceeded S4; trillion and y late $;44 had increased
to S$# trillion according to the %inancial 'taility *oard. 7loally, a study of the 44 largest
national shadow anking systems found that they totalled to S:; trillion in $;;B, fell to S#B
trillion in $;;5 ut y late $;44 had climed to S:4 trillion, 8ust o&er its estimated si!e efore the
crisis. O&erall, the world wide '*' totalled to aout SK; trillion as of late $;44.'hadow
institutions do not accept deposits like a depository ank and therefore are not su8ect to the
same regulations. ,omplex legal entities comprising the system include hedge funds, structured
in&estment &ehicles M'+LN, special purpose entity conduits M'0EN, money market funds,
repurchase agreement MrepoN markets and other non9ank financial institutions.
/
'hadow anking institutions are typically intermediaries etween in&estors and orrowers. %or
example, an institutional in&estor like a pension fund may e willing to lend money, while a
corporation may e searching for funds to orrow. The shadow anking institution will channel
funds from the in&estorMsN to the corporation, profiting either from fees or from the difference in
interest rates etween what it pays the in&estorMsN and what it recei&es from the orrower.The
shadow anking system makes up $: to 6; percent of the total financial system, according to the
%inancial 'taility *oard M%'*N, a regulatory task force for the world/s group of top $;
economies .
This largely unregulated sector was worth aout SK; trillion in $;4;,.Eike traditional anks,
shadow anks pro&ide credit and li@uidity ut, unlike their traditional counterparts, they do not
ha&e access to central ank funding or safety nets like deposit insurance. 3nlike traditional
anks, shadow anks do not take deposits. +nstead, they rely on short9term funding pro&ided
either y asset9acked commercial paper or y the repo market, in which orrowers offer
collateral as security against a cash loan and then sell the security to a lender and agree to
repurchase it at an agreed time in the future for an agreed price. They are often ased in tax
ha&ens, in&est in long9term loans like mortgages, pro&iding credit across the financial system y
matching in&estors and orrowers indi&idually or y ecoming part of a chain in&ol&ing
numerous entities, some of which may e mainstream anks.
/
(s shadow anks do not take deposits, they are su8ect to less regulation than traditional anks.
They can therefore increase the rewards they get from in&estments y le&eraging up much more
than their mainstream counterparts and this can lead to risks mounting in the financial system.
3nregulated shadow institutions can e used to circum&ent the strictly regulated mainstream
anking system and therefore a&oid rules designed to pre&ent financial crises.
+n 1anuary $;4$, the gloal %inancial 'taility *oard announced its intention to further regulate
the shadow anking system, in the interests of the real economy.
The full extent of the shadow anking system was not widely recognised until work was
pulished in $;4; y .anmohan 'ingh and 1ames (itken of the +nternational .onetary %und,
showing that when the role of rehypothecation was considered, in the 3.'. the '*' had grown to
o&er S4; trillion, aout twice as much as pre&ious estimates.
This een implicated as significantly contriuting to the gloal financial crisis of $;;BH$;4$.
/
The rapid increase of the dependency of ank and non9ank financial institutions on the use of
these off9alance sheet entities to fund in&estment strategies had made them critical to the credit
markets underpinning the financial system as a whole, despite their existence in the shadows,
outside of the regulatory controls go&erning commercial anking acti&ity. %urthermore, these
entities were &ulnerale ecause they orrowed short9term in li@uid markets to purchase long9
term, illi@uid and risky assets. This meant that disruptions in credit markets would make them
su8ect to rapid dele&eraging, selling their long9term assets at depressed prices.
/
Economist 0aul 2rugman descried the run on the shadow anking system as the "core of what
happened" to cause the crisis. "(s the shadow anking system expanded to ri&al or e&en surpass
con&entional anking in importance, politicians and go&ernment officials should ha&e reali!ed
that they were re9creating the kind of financial &ulneraility that made the 7reat <epression
possileVand they should ha&e responded y extending regulations and the financial safety net
to co&er these new institutions. +nfluential figures should ha&e proclaimed a simple ruleR
anything that does what a ank does, anything that has to e rescued in crises the way anks are,
should e regulated like a ank." )e referred to this lack of controls as "malign neglect."
UN"UOTE

,ompetiti&e indi&idualism actually destroys societies dependent on team dynamics , as it
undermines the moral consensus holding human communities together. )uman welfare is est
measured y the market9ased national product accounts Mper capita productsN
<uring the (ge of Enlightenment society flourished, propelled y the wonder of new
disco&eries, radical ideas for economic and social de&elopment, and a sense that we all had a
responsiility to impro&e our world. +t/s time to get ack to those lofty ideals, step ack ,
examine and re9e&aluate our &alues, and work out what humankind really needs.
(ll percepti&e students of economics on this planet 99 please
start demanding answers from your professors V + am sure you
know that you are eing taught empirical pseudo9science in
college.
+f it is lasphemy so e itT The emperor is naked indeed , and you must expose him TT
Ce must make a new win9win model ensuring the down trodden are not left ehind, with
freedom from >risk of going ack to sla&eryA as numer one condition.
Ce must NOT confuse 7<0 with economic progress. Ce are destroying entrepreneurial acti&ity
and urning our own aies.
+N O-<E- TO '(LE T)E CO-E< %O- )3.(N )(*+T(T+ON, CE .3'T 'TO0
TE(,)+N7 %E(CE< E,ONO.+,'T
Economic theory astracts from &irtually anything ha&ing to do with time. (ll of it is a 6<
graphVtime must e taken into account. Ce are NOT intelligent or percepti&e to talk in #<.
/
*ut we all know the planet sur&i&ed &ery well efore (dam 'mith and -othschild/s mistress (yn
-and cooked up super9man 1ohn 7alt ,rightF
/
E-o!o+it +#t 0$ lat$(al thi!1$(3
(TE(' ')-377E< was written in 49:B, y a 1ewish -ussian (merican y the name of (yn
-and M (lisa -osenaum , orn 49;: , from 't 0eterserg N . 'he has put herself in the ook as
<agney Taggart99the heroine.
The hero was of course 1ohn 7alt, who is clearly 0hillipe -othschild. The ook glorifies
capitalism and the &irtues of selfishness99 typical of Yionist ankers and %ree .asons. 1ohn 7alt
does not make an appearance in the no&el till it is $/6 o&er.
*ut he gets a great introduction 99 rather his reputation precedes him, y the constant corny rain
thumpin/ refrain " Cho is 1ohn 7altF "
99 the readers are now in the common @uest to disco&er this answer ri&alling the holy grail .
(s the ullshit plot unfolds 1ohn 7alt is turn out to e a creati&e in&entor, the great all (merican
1ewish capitalist who has all the grey matter and moolah. )e and his 1ewish industrial leader ilk
are supposed to hold the urden of this planet9 like how (tlas held up the whole world on his
shoulders , as per 7reek mythology.
/
'o in $;;599 as per the 1ohn 7alt lue print 99 1ewish Eehman rothers went ankrupt first 99
causing the <EE+*E-(TE <O.+NO E%%E,T.
The whole worlds wealth 'EE% <E'T-3,TE< ON ,O.03TE- and suddenly &anished 99 this
is the essence of financial engineering 99
POOOOO4443
Trillions of <ollars were then spent to ail out and pre&ent the world system from collapsing
%3-T)E- and total fiasco.
/
This ail out money would e the common poor mans/ future tax urden.
3' %ederal -eser&e which is a pri&ate Yionist 1ewish organisation M it is NOT owned y 3'
go&ernment N in8ected illions of dollars into the (merican anking system.
Other anks had to follow suit and Call 'treet was rought on its knees, 7loal e@uities
including in +ndia nose di&ed.
+.% lead y -othschild man 2ahn and +*-< would make trillions of dollars a&ailale to
struggling countries, and put them in the &ice of det traps . The %ed ga&e $ Trillion dollars in
loans to ,itigroup , .organ 'tanley etc.
/
The crash of $;;5 had een planned for se&eral years99as a inner *ildererg clu decision.
+t did NOT happen o&ernight.
( piece of ad&ise for our new patriotic " Economic Carriors"
who can make a difference, for *harat .ata.
<well o&er it. .ake a ,)(N7E for the etter.
As !instein said, we cant solve our comple" pro.lems with the same colonial mindset and
thining that created them.
.aking easy money y digging up and shipping it o&erseas is NOT the economy model we wish
for. This has een o&erdone y corrupt politicians who wanted kickack accounts in foreign
'wiss anks.
The need to dri&e the economy growth must e alanced with the need to care for our down
trodden people and the need to protect our en&ironment . The economy is 8ust a tool we in&ented
for go&erning the relationship etween people, and etween people and nature.
Ce need to faricate new economic tools. Ce need to gi&e incenti&es for > reuse and recycleA.
+ndia=s prosperity depends upon our collecti&e wisdom, our health, our creati&ity and on a
healthy en&ironment.
7<0 8ust measures what we make and consume, not who we are Mour human and social capitalN
or where we li&e Mour natural capitalN. +t totally disregards the e&er widening chasm etween
ha&es and ha&e nots. Eet some ha&e nots e in&ited on our foreign funded TL , instead of Eord
.eghnath <esai prototypes.
(dam 'mith dri&en economists lo&e a catastrophe in our country. They generate economic
acti&ity, regardless of the human cost, rightF.
7<0 is useful for its purpose H for predicting tax re&enues , for example H ut it cannot e seen
as the ench mark , of our progress as a nation and our entrepreneur dri&e .
The 7N0 does not allow for the health of our children, the @uality of their education, or our
patriotism to our elo&ed country, which roke the chains of 5;; years of sla&ery, 8ust K: years
ago. Ce need a dri&er in the dri&ers seat with 4;;% +ndian <N(Vand not an +talian waitress.
7N0 measures e&erything , except that which makes life worthwhile in +ndia. (nd we ha&e
simple tastes and we are a happy family .
0roducti&ity is a word that suffers terrile ause at the hands of (dam 'mith dri&en usiness
loyists .
There must e some dang e&idence that allowing workers to e treated more harshly and
unfairly does anything to impro&e society.
0roducti&ity gains are est found through in&esting in the future of +ndian economy H through
constant prioriti!ation of needs, education, -I<, health and etter management of our ountiful
resource .
)ealthier people are more producti&e workers, with fewer sick days. ( etter educated
population is a more producti&e population. ,learly we need to get our priorities straight.
Chy do we gi&e illions to multi9national corporations like Ledanta and not more assistance to
cottage industaries and pop and mon small usinessesF
The Cest has gone ack to clean ri&ers , lue skies and green fields. Ce must protect our
en&ironment also helps people, creates 8os and helps the economy.
Ce must not allow desh drohi politicians and money ags, to pander to e&il companies like
.onsanto, who will ury our food security. No food for 4.6 illion people means ci&il war, and
this is what the 8ealous Cest wants.
/
.onsanto came to +ndia for selling genetically engineered seeds y riing +ndian politicians.
'onia 7andhi fa&ours .onsanto. Once you get into the pay roll of .onsanto there is NO way
out. +t is 8ust like doing a fa&our for any drug cartel . Once +N there is no way O3T.
Thanks to .onsanto the ee population on this planet has declined. This is dangerous as ees are
essential for pollination. Nil ees and the planet will die in less than a decade. Chen ees are
affected y pesticides they inuilt radars get shut down, and they get lost.
This e&il monster has taken away the age old farmers right to use their own grown seeds . Ce
ha&e to uy seeds from .onsanto , as .onsanto 7. seeds are terminator seeds or sterile seeds.
(nd like how *ill 7ates changes the Cindows &ersion , .onsanto also started their Lersion 4 ,
Lersion $.$ seeds99or99 second / third generation seeds. 'o the farmers had to orrow money
from money lenders, and get themsel&es into a det trap, with declining yield crops.
/
,ontrary to .onsanto claims genetically engineered seeds does NOT increase the yield. The
.onsanto method has gi&en irth to 'uper Ceeds and 'uper 0ests, as they ecome resilient.
7round water is now polluted as more deadly pesticides ha&e to e used in greater doses.
)onestly +ndians are eing used as guinea pigs , all under the lessings of our politicians and
foreign funded doule agent N7Os99who ha&e 'wiss ank accounts. *y the way 'wiss anks are
owned y -othschild.
Today if you &isit hospitals in +ndia the kidney and li&er sections are full . Our old people get
(l!hiemers which was ne&er heard of in +ndia thanks to 7. seeds. Chom do we need to thankF
Ce can make this &ision a reality, ut only if we recognise that
the economy needs to ser&e the needs of people and nature, not
the other way around.
/
,(0T (1+T L(<(2(Q+E
..
0osted y ,apt. (8it Ladakayil at 4;R:# 0. /
56 -o++$!t7
4.
/
Sumesh S +am.oodiri 'eptemer $:, $;4$ $R4K (.
Thanks a lot..
'umesh
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Capt. Ajit Vadaayil 'eptemer $:, $;4$ KR4: (.
shyamalganguly M3'(N replies to a8it &adakayil
7oldR :#B6B#$
Qou are doing a great 8o in exposing pseudo sla&e economists of +ndia like .anmohon
'ingh, .ontek (hluwalia and (martya 'en. +t would e great if you could write
something aout the citadels of .anagement 'tudies called ++.. E&en well trained
engineers from ++T go there to get rainwashed after graduating from ++Ts. + ha&e seen
++. candidates getting starting salaries in e&en +ndia which are outrageously out of tune
with the 8o market. (re these all riggedF *TCR ha&ing troule with re,(0T,)(. ,an
not sumit response on your log.
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Capt. Ajit Vadaayil 'eptemer $:, $;4$ KR$4 (.
hi shyamal,
a supreme example is ,)ET(N *)(7(Tm who is a rothschild propaganda man.
i ha&e put a para for him at the ottom of my post 0E-,E0T+ON (N< -EE(T+L+TQ9
L(<(2(Q+E.
lot of people are groomed like this y foreign masters 99 example of arundhati roy, amish
tripathi etc.
chetan hagat had the gall to ask aa ramde& how to cure homosexuality etc in a drisi&e
manner .
this is why for assholes like chetan hagat i ha&e put a post QO7( (N< (Q3-LE<+,
.(''(7E %O- <-(+N+N7 EQ.0) NO<E'9 L(<(2(Q+E.
when a man is o&ersexed he will put his dong into a hole in a wall tooTT
capt a8it &adakayil
..
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#. /
I<IS4+A+ K!<I+I01A6 'eptemer $:, $;4$ #R;B 0.
<ear ,apt (8it Ladakayil,
+ 8ust had a cursory glance due to paucity of time and sa&ed the entire material for a &ery
leisure reading. 'imply a piece of mar&ellous work. .y congratulations. 0lease keep it
up.
2rishnan
't.Eouis
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:. /
nvltec 'eptemer $:, $;4$ BR;B 0.
,apt, the salaries of ++. grads is 8ustifiale if we see the amount of profits that their
employers make out of crony capitalism and their links with the politicians. The paid
media ne&er others to go ack and check those companies which offered large
renumerations during last few years to &erify if they were among those implicated in the
recent scams or some or the other corporate relations with companies like Ledanta etc.
Cealth .anagers who manage wealth generally end up managing the lack money
routed thru hawala etc.
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K. /
Capt. Ajit Vadaayil 'eptemer $:, $;4$ 5R;: 0.
hi,
,)ET(N *)(7(T is now eing hea&ily sponsored. ha&e you read his <(%T ooksF
he talks aout how much rent he paid in hongkong while working for goldman sacs, and
impressed all the mangy indians.
after eing to hongkong more than 4;; times o&er the past #; years , this type of rent is
what you pay for a ONE *E< -OO. (0(-T.ENT at the seaface.
LE<(NT( is controlled y rothschild.
punch into google search *(3Z+TE .+N+N7, N(Z(E .EN(,E9 L(<(2(Q+E.
now all the mormons M american arm of rothschild/s religion N in india are feeling &ery
happy that mitt romney will ecome the new 3' president as i had predicted $ years ago,
in se&eral of my log posts.
god sa&e india.
if you write a comment against &edanta in the e news like TO+ or E,ONO.+, T+.E'99
immediately you
will e attacked y monkeys with ausi&e comments99
(EE (-E 7O-(' C+T) %(E'E +N<+(N )+N<3 +NTE-NET N(.E'.
capt a8it &aadkayil
..
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B. /
Sudhan 'eptemer $:, $;4$ 5R$6 0.
)ats Off,
<ear ,apt (8it,
Lery good research study and the so called economics is designed for top usiness people
the ankers and insurance companies,
this will end soooon ecause it is slowly reali!ed y pulic.
that/s why god has created internet which can not y destroyed.
2eep posting and god less you.
Narayana.....
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-eplies
4. /
j.or 'eptemer $:, $;4$ 4;R4B 0.
)ilarious. 7od has created +nternetF +t has een created y goras, that too 3'
army research.
<elete
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5. /
Anil <eddy 'eptemer $:, $;4$ 9R:; 0.
+ knew few things aout -othschild, 3' %edreal *anking and Opium I Tea trades. *ut
there are more than + could read in 4 sitting. + lo&ed it all the way.
+f could also please elaorate on how to do our homework for +n&estments in this rotten
economy.. + would really appreciate your inputs.
Thank you so much.
(nil -eddy
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9. /
Capt. Ajit Vadaayil 'eptemer $:, $;4$ 44R4; 0.
hi 8or,
the goras who creates internet , google , apple etc were all )+00+E' who came walking
all the way to india in the sixtees.
punch into google search 'TELE 1O*' 9 L(<(2(Q+E.
pre&iously tge goras knew only how to T(2E99 after they came to india they understood
the 8oy of 7+L+N7.
capt a8it &adakayil
..
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-eplies
4. /
j.or 'eptemer $K, $;4$ $R;4 (.
Not @uite the way you put it. )e actually learnt from the flaws in +ndian culture.
%rom his iographyR
"'te&e was disillusioned with the po&erty he encountered in +ndia and found it
hard to reconcile this with the high spiritual ideals of the country. )e had a
urning desire to help the masses ut he gained insight during his trip that the way
out of po&erty was not through socialism or spirituality ut through technology
and capitalism."
.a8ority hippies who come to +ndia ultimately reali!e the flaws of the swamis of
today. <on/t get me wrong. + am a ig elie&er in spiritualism, especially the way
Li&ekananda approached it, where he tried to merge the ancient &edas with the
latest scientific wisdom Mut not forcefullyN. .y feeling is that, if the scholars
from the Ledic age were around, they would ha&e een first9grade scientists
Mphilosophically similar to (merican scientists and hippies of the mid949;;sN
ecause they often wondered aout cosmology and the stars. They would not e
like the fraud, unintelligent swamis and yogis we see today.
<elete
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4;. /
Capt. Ajit Vadaayil 'eptemer $:, $;4$ 44R46 0.
hi anil,
go for moderate profits . this way your in&estment will e safe.
when things are TOO 7OO< with &ery high returns, there will always e a catch.
capt a8it &adakayil
..
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44. /
AshishLMDCNs Blog 'eptemer $K, $;4$ 4$R46 (.
,aptain (8it,
'uper work and an eye opener for the present generation economics students.
2eep the good work going .
(shish
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4$. /
Capt. Ajit Vadaayil 'eptemer $K, $;4$ $R$# (.
hi 8or,
if ste&e 8os found india to e poor 99 he is right.
his white christian in&ader cousins stole the wealth of india, for $:; years efore he came
, india was the richest country on this planet.
his mind and soul healing in india was aorted99as he got pasted for his selfishness.
that is why he claimed credit for all the in&entions his employees did M which ill gates
did NOT do N.
ste&e 8os was a 2+N7 '+YE< ('')OEE like the @uintessential yank edison.
punch into google search E<+'ON9 L(<(2(Q+E.
capt a8it &adakayil
..
-eply
MODERN ECONOMICS, AN EMPIRICAL VULGAR PSEUDO SCIENCE-
CAPT AJIT VADAKAYIL
/
MODERN ECONOMICS, AN EMPIRICAL VULGAR
PSEUDO SCIENCE, JOHN GALT - CAPT AJIT
VADAKAYIL
/
So the spider said to the fly, allow me into your parlour, you are in great danger, and only I can
save you. The fly opened the door -- Capt Ajit Vadaayil.
This post of for students of Economics.
Next time your professor tells teaches you something i college which you do NOT agree, speak
up. 99.99% of the time the teacher will NOT e ale to explain , as he himself is a rainwashed
!omie, elonging to the group who is trained to holler "# legs good $ legs etter"
%irst of all imagine that you are a group of oy scouts. TERRAIN MUST
PREVAIL OVER THE MAP, ALWAYS.
Economics is an emprical pseudo science where the re&erse happens, more often than not.
The father of Economics is a 'cotsman (dam 'mith.
/
'o who is or rather who was (dam 'mith.
)e was the "one man think tank" to the owner of *ritish East +ndia ,ompany. -ather he was the
ad&iser to -oert ,li&e, the henchman of -othschild.. .uch later he would ad&ise -othschild on
how to set up his anking cartel and set up a lue print on how to control the world.
/
-othschild/s agents in +ndia for the Opium trade were the filthy rich 0arsis in .umai, an *irls,
12 and party in ,alcutta. 'asoon who elonged to -othschild loodline, who operated from
*omay, kept a hawk/s eye.
The agents for the lack sla&e trade in 3'( was 10 .organ.
+n 456#, -othschild pre&ailed upon 'ir 1ohn 7ladstone to replace african lack sla&es with
+ndian +ndentured laour. Ne&er in the history of mankind has there een a saga of such greed
and in8ustice99 where more than 4.$ million innocent +ndians were duped whole sale , gi&en a life
sentence , dumped in far flung corners of the planet and forgotten for e&er.
/
,hristian .issionaries were used deep in forests to lure trials. :6;;;; +ndians went to 7uyana
alone, while .auritius had 6:;;;; , .alaya $:;;;; and Trinidad had 4:;;;; coolies.
/
(nd today we ha&e 'onia 7andhi and .anmohan 'ingh ha&e gi&en the same -othschild , a toe
hold 99 nay99 a dri&ers/s seat , y allowing %<+ in multi9rand retail, %<+ in insurance etc.
On the <ec $;, $;;# letter, the %(.=s foreign trade committee chairman ,handrakant T.
'hangh&i said that .anmohan 'ingh had categorically told a delegation of the traders= ody that
>we should not permit %<+ in retail trade? +ndia does not re@uire the kind of reforms which
would, rather than creating employment, destroy employmentA.
So all thi i Italia! "#$$! %$$& i'$a,
(i)ht *-- a!' Ma!+oha! Paa,i i -a($'
o. h$( *
*y the way our own 0. .anmohan 'ingh worked for a
-othschild financial concern efore he ecame +ndia/s %inance
.inister, as a part of re9orientation. )e was the 'ecretary
7eneral of the 'outh ,ommission, an independent economic
policy think tank head@uartered in -othschild anking cartel=s
home turf 7ene&a, 'wit!erland from 495B to 499;.
Our poor 0. ,handrasekhar was reduced to selling our 7old in
4994, and Corld *ank and +.% would NOT gi&e a loan unless
.anmohan 0aa8i was made %inance .inister. (nd later +talian
Dueen *ee 'onia would NOT ha&e anyone else except
"unelected" .anmohan 0aa8i as 0.99 going against the +ndian
,onstitution for a democracy.
-othschilds controls the 3' %ederal reser&e, all the ,entral anks of all the countries of the
world 99except Eiya, 'yria, +ran, North 2orea and ,ua. Eiya has een taken out. The next in
the pecking order is 'yria99then +ran.
-othschild also controls the +.% and Corld *ank. 'o, how does the +.% and the Corld *ank
workF
They put a country in det, in such a ig det it canGt pay it, and then they will offer to refinance
that det, and pay you e&en more interest, and you demand this @uid pro @uo which you call a
>conditionalityA or >good 0aa8i go&ernanceA. Their ouncers H nay9 watch dogs are 'I0, %itch,
.oody=s etc.
This process of manipulation y the corporato9cracy through the use of det, riery and,
political o&erthrow is called >7loali!ationA. 1ust as the federal reser&e keeps the (merican
pulic in a position of indentured ser&itude through perpetual det, inflation and interest, the
Corld *ank and +.% ser&e this role on a gloal scale.
The asic scam is simple. 0ut a country in det either y its own indiscretion or through
corrupting the leader of that country, then , impose conditionalities, or 'tructural (d8ustment
0olicies?often consisting of currency de&aluation, pri&ati!ation of state9owned enterprises trade
lierali!ation.. Or the opening up of the economy through remo&ing any restrictions on %<+ in
multirand retail or +nsurance sector or foreign trade. The rating agencies will gi&e low growth
ull percentages.
This allows for a numer of ausi&e economic manifestations? such as 1ewish Calmart and
.onsanto type transnational corporations ringing in their own mass produced products,
undercutting the indigenous production and ruining local economies? Today, countless farmers
are out of work, for they are unale to compete with the large corporations.
(nother &ariation is the creation of numerous, seemingly unnoticed, unregulated, inhumane
sweatshop factories, which take ad&antage of the imposed economic hardship.
The world is eing taken o&er y a handful of usiness powers as per the lue print of (dam
'mith , who dominate the natural resources we need to li&e, while controlling the money that we
need to otain these resources.
(dam 'mithF Cho the fuJk is (dam 'mithF
Economic students need NO introduction. )e is the father of Economics.
Ce +ndians need to know more aout (dam 'mith.
The *ritish soldier in +ndia thought that he was fighting for @ueen and country. (ctually simple
1ohn *ull shed his lood for a 7erman 1ew. -othschild had their own )essian merceneray army,
highly paid, who spoke no English. Chene&er secrecy ,deceit and co&ert operations were
in&ol&ed , without e&en the *ritish 0arliament and Dueen knowing aout it , -othschild used his
hessian -egiment . The spoils went into his underground cellar.
Opium traders -othschild took o&er +ndia officially &ide the *attle of 0lassey in 4B:B , and
stopped all pretense of eing traders, y ama!ing deceit which sprung from the warped rains of
(dam 'mith
%irst of all the trigger of the *lack hole of ,alcutta was cooked up . +t was tom tommed y
*ritish East +ndia ,ompany that Nawa 'ira8 3d <aula locked up 4#K *ritishers in a small dark
ill &entilated room, out of which 4$6 died. The truth is only :5 people were in the room , out of
which 49 died..
/
(dam 'mith used his deception model to end the .ughal Empire in +ndia. There was supposed
to e a great heroic *attle of 0lassey in 4B:B, for the *ritish East +ndia ,ompany under -oert
,li&e to take o&er +ndia. The excuse was the incident called the *lack hole of ,alcutta. The
-othschild held media made a mountain out of the molehill. E&en today the world media and
)ollywood is controlled y -othschild cartel. The +ndian news on +ndian TL is -othschild spun.
The *attle of 0lassey itself is a huge lie. +t ne&er took place. )istory was fudged. +t is so easy
when you control the peer re&iewed media and pulishing houses. This is why you get the truth
on +nternet.
Early in 4B:K, 'ira8 3d <aulah had succeeded his grandfather (li&ardi 2han as Nawa of
*engal. 'ira8 3d <aula was killed efore e&en a single shot was fired y his rother9in9law and
army ,ommander .ir 1affar, who was ried y -othschild employee -oert ,li&e.
/
.ir 1affar was made a stooge Nawa and in return he ga&e a lot of 'ira8 3d <aula/s gold and
diamonds for -oert ,li&e to take home personally in great secrecy. ,li&e wanted to s@uee!e
him more and when unale to milk him further, sho&ed off .ir 1affar and put his ri&al .ir
Dasim as the 'atrap.
(dam 'mith M orn : 1une 4B$6 H died 4B 1uly 4B9;N took ten years to write his economics
gospel y way of a ook >The Cealth of Nations > , pulishing it in 4BBK. . )e ne&er married,
and he used to walk like a ,)(22(. )e was delusional too, sometimes in a morid manner.
)e is also said to ha&e put read and utter into a teapot, drunk the concoction, upped his ante
and made a hue and cry o&er the @uality of tea . (nother time our man (dam 'mith without as
much as a >y your lea&eA went out sleep walking in his nightgown in road daylight and ended
up $# km outside of town, efore neary church ells rought him ack to reality.
)is house used to look like a garage dump as he hoarded e&erything.
.uch later in 4B99, -othschild would murder Tipu 'ultan , and then make a huge pretense of a
great war. *y now (dam 'mith was dead and gone. *ut the lue print was his alone.
The door of Tipu=s fort were opened y .ir 'adee@ on #th .ay 4B99. . (ll Tipu 'ultan loyalists
soldiers were sent away to stand in @ueue for wage distriution. Tipu 'ultan was ha&ing his food,
when he was killed y a single shot from close @uarters on his left cheek. )e was also staed
three times on his chest and later dumped outside on the field among the dead at dusk .
/
.ir 'adi@ and his assistant .ir .oinuddin , who were ried y -othschild man Eord
Cellesely, were oth murdered y the *ritish and made it appear as if they were killed y Tipu
'ultan loyalists. 'o the *ritish made ousted 2ing Codeyar, rotting in Tipu/s prison , the new
king of .ysore.
-othschild is like 0hantom, The 7host who walks. Chen one 0hantom dies the son takes o&er
the empire.
-othschild took away Tipu 'ultan/s gold worth Trillions, in 6 ships which were waiting for
months to carry it away. This is the ase anking capital of Nathan -othschild. This gold was
stolen from the 2erala temples y Tipu 'ultan ,the fruit of K millenniums of spice trade. + am
from 2erala.
/
+n a minor south 2erala 'ri 0admanahaswamy temple $: illion 3' dollars worth gold was
unearthed in 1uly $;44. The main &aults are yet to e opened due to security issues and a 8udicial
order. Tipu 'ultan was left alone y -othschild till e made a huge pile of gold y plundering the
temples of 2erala, using his half (ra half .alayali .uslim spies.
/
.uch later Cinston ,hurchill , whose mother 1enny 1erome was -othschild, would use the
(dam 'mith model to start oth Corld Cars, to car&e out the state of +srael. )e used used
Eusitania M sister ship of Titanic N to drag (merica into the war in CC4 and 0earl )arour in
CC$. Today -othschilds owns most of +srael
7etting ack to the father of Economics99 (dam 'mith had O,< or osessi&e compulsi&e
disorder. )oarding is an effort to manage the anxiety raised y osessi&e douts. There will e
a disruption to feelings of self9worth, interpersonal relationships, occupation, or health as a result
of hoarding items which are worthless.. ( hoarder will ha&e an imaginary emotional connection
to all such garage. 0eople with personality disorders , generally, lame others for their
prolems. They are awful to work with ecause they don=t accept responsiility for themsel&es
and therefore ne&er change.
Chen such people write the gospel of economics, " The Ceath Of Nations" you know what you
will get. .uch later .ilton %riedman effecti&ely took many of the asic principles set forth y
(dam 'mith and the classical economists and moderni!ed them. This is the reason why
economists fall into the same hole again and again and again.
The hea&y part comes now99 let me crack a @uintessential "Economist " 8oke, to cheer you up.
These dorks are so full of themsel&es .
!"perienced economist and not so e"perienced economist are waling down #"ford street.
They get across shit lying on the asphalt.
!"perienced economist$ %If you eat it I&ll give you '(),)))*%
+ot so e"perienced economist runs his optimi,ation program on his I- procesor laptop and
figures out he&s .etter off eating it so he does and collects money.
Continuing along the same road they almost step into yet another pice of turd.
The not so e"perienced economist$ %+ow, if /#0 eat this shit I&ll give /#0 '(),))).%
After evaluating the proposal , our e"perienced economist eats shit and pocets the moolah.
They go on.
The not so e"perienced economist starts thining aloud $ %1isten, we .oth have the same amount
of money we had .efore, .ut we .oth ate shit. I don&t see us .eing .etter off.%
!"perienced economist$ %2ell, that&s true, .ut you overlooed the fact that we&ve .een just
involved in '3),))) of fucing trade.%
Take a reak 99 come ack and try and understand what + say. + am a percepti&e ship ,aptain. +
really don/t care for mother hen/s opinion as to how good the omelette on my reakfast plate is.
Now let me digress and gi&e you an rief introduction to the great (merican <epression of 49$#.
This is one of the holes + talked aout efore when all economists fell face down .
The international ankers mentored y -othschild installed a ,entral *ank in 4946?The
%ederal -eser&e. (nd as long as this institution exists, perpetual det is guaranteed.
3nfortunately, economics is often &iewed with confusion and oredom. Endless streams of
financial 8argon coupled with intimidating empirical mathematics @uickly affle and deter people
from attempts at understanding it. )owe&er, the fact is, the complexity associated with the
financial system is a mere mask, designed to conceal one of the most socially paraly!ing
structures humanity has e&er endured.
E&ery single dollar in your wallet is owed to someody y someodyO for rememer, the only
way the money can come into existence is from loans. Therefore, if e&eryone in the country were
ale to pay off all dets, including the go&ernment, there would not e one dollar in circulation.
+f there were no dets in (dam 'mith modeled 3' money system, there wouldnGt e any money.
Now, so far we ha&e discussed the reality that money is created out of det, through loans. These
loans are ased on a ank=s >-eser&esA and -eser&es are deri&ed from deposits. Through this
fractional reser&e system, any one deposit can create 9 times its original &alue, in turn deasing
the existing money supply, raising prices in society. (nd since all this money is created out of
det and circulated randomly through commerce, people ecome detached from their original
det and a dise@uilirium exists where people are forced to compete for laor, in order to pull
enough money out of the money supply to co&er their costs of li&ing.
(s dysfunctional and ackwards as all of this might seem? there is still one thing we ha&e
omitted from this e@uation? and it is this element of the structure which re&eals the truly
fraudulent nature of the system itself.
9The application of +nterest.
Chen the go&ernment orrows money from the %ed or when person orrows money from a
ank, it almost always has to e paid ack with accrued interest. +n other words, almost e&ery
single dollar that exists must e e&entually returned to a ank, with interest paid as well. *ut, if
all money is orrowed from the central ank and is expanded y the commercial anks through
loans, only what would e referred to as the Pprinciple= is eing created in the money supply?.
'o then, where is the money to co&er all of the interest that is chargedF
Nowhere. +t doesn=t exist. The ramifications of this are staggering, for the amount of money
owed ack to the anks will always exceed the amount of money that is a&ailale in circulation.
This is why +nflation is a constant in the economy, for new money is always needed to help co&er
the perpetual deficit uilt into the system, caused y the the need to pay the interest.
There are two ways to con@uer and ensla&e a nation. One is y the sword. The other is y det.9
1ohn (dams94B6:945$KN.
OO0' + went of tangent 99let me get ack to the 7reat (merican <epression of 49$#.
The nineteen twenties was a period of great prosperity in the 3nited 'tates.
The financial 8ackals decided that it is the right time to pull the rug from the feet of the gullile.
'chemes were laid down where y paying a small amount , you could uy almost anything ,
pro&ided you gi&e a monthly recurring payment99or in short put the common man in the &ice of
det.
The gullile common Qank had NO dang idea , of the dangers of det and high interest rates 99
and kept shopping merrily.
(d&ertising ecame part of the faric of (merican culture as ads dominated newspapers and
maga!ines99aout huge discounts and hassle free loans.
2eeping up with the 1oneses , social snoery and false studies con&inced consumers to uy
more.
Cith massi&e corporate growth, high employment and a post9war ull9market on Call 'treet,
first time (merican in&estors went on a stock9market uying spree.
E&eryone wanted a piece of this cake.
0eople ought stock on margin or credit for as little as 4;% down. They then used the stock as
collateral to orrow more money to uy more stock. Then they did it again. The market was a
free9for9all. +t was prosperity hea&en.
(lthough e&erything looked rosy, it was a castle made of sand and the great (merican party
ended on Octoer $9th 49$9 when the stock market crashed and caught e&eryone off guard.
E&eryone except the 1ew -othschild money ag insiders and their financial 8ackals 99that is.
+n (pril of 49$9, 0aul Carurg, the father of the %ed, sent out a secret ad&isory warning his
friends that a collapse and nationwide depression was certain, then in (ugust of 49$9 the %ed
egan to tighten money.
)uge financial Call 'treet giants were forewarned in secret of the incoming tsunami .
1ohn <. -ockefeller, 1.0. .organ, *ernard *eruch and all the %ree .asons M read as the old
Opium running partners of -othschild familyN got out of the stock market 8ust efore the crash
and put all their assets in cash or gold.

On Octoer $#th, 49$9, the ig NQ ankers called in their $#9hour roker call loans. This meant
that oth stockrokers and customers had to dump their stocks on the market to co&er their loans,
no matter what price they had to sell them for. (s a result, the market tumled and that day was
known as "*lack Thursday".
,urtis <all, a roker for Eehman rothers, was on the floor of the NQ stock exchange the day of
the crash. +n his 49B; ook, "%<-R my exploited father in law", he explained that the crash was
triggered y the planned sudden shortage of call money in the NQ money market.
Cithin a few weeks, S6 illion &anished into thin air. Cithin a year, S#; illion &anished.
*ut did it really disappearF
Or was it simply netted y the financial 8ackalsF
(nd what did the %ed doF +nstead of mo&ing to help the economy out, y @uickly lowering
interest rates to stimulate the economy, the %ed continued to rutally contract the money supply
further, deepening the depression.
*etween 49$9 and 4966, the %ed reduced the money supply y an additional 66%. The %ederal
reser&e engineered the great <epression.
*ut the money lost y the common Qank during the depression, didn/t 8ust &anish. +t was lined
the nests of the 8ackals who had gotten out 8ust efore the crash and had purchased gold, which is
always a safe place to put your money 8ust efore a depression.

%ollowing the crash the great depression put 4/6 of the 3' workforce out of work.
/

The anks foreclosed on property and took possession of peoples/ homes and farms. Chen
panicked citi!ens lined9up at anks to withdraw their hard earned sa&ings, the anks ga&e them
only 4;c on the dollar.
)omeless and desperate, many (mericans set up tent cities and roamed the rails looking for
work.
/
,ongressman Eouis .c%adden, chairman of the )ouse *anking ,ommittee, claimed the crash
was planned y the international ankers who sought to ecome rulers of us all. +n his famous
496$ ,ongressional address he said ".r. ,hairman, we ha&e in this country one of the most
corrupt institutions the world has e&er known. + refer to the %ederal -eser&e *oard and the
%ederal -eser&e anks. The %ederal -eser&e *oard has cheated the people of the 3nited 'tates
out of enough money to pay the national det 6 times o&er. This e&il institution has impo&erished
and ruined the people of the 3nited 'tates through the defects of the law in which it operates and
through the corrupt practices of the moneyed &ultures who control it.
The common Qank thinks the %ederal -eser&e *anks are go&ernment institutions. They are not
go&ernment institutionsO they are pri&ate credit monopolies which prey upon the people of the
3nited 'tates for the enefit of themsel&es.
%ollowing a series of death threats, .c%adden was finally poisoned and done in y the 8ackals.
.urder99 yes99 you are dealing with ex9drug runners and sla&e traders, rightF
Economics has done a poor 8o of understanding the economy, as demonstrated y the failure of
metrics, statistical collection of data , academic monitoring . Not a single Economical 'cience
expert out of millions could predict the $;;5 recession, despite indications to the contrary.
Economics fails ecause it can only understand the economy in astract terms, and so it is seen
clearly. Economics appears to primarily study large corporations and small usinesses with the
catchall term of >firms.A
+ can see that you are pretty depressed y now99let me tell you another 8oke, while you ha&e your
coffee.
%or what follows after the 8oke will e pretty depressing and you will get terrily angry at the
C(Q' O% T)E 0+E< 0+0E-.
An American .aner needs to go for a crap , and so he stops at the .est motel in town
in #lahoma .
4e tells the motel owner at the reception that he needs to stay overnight, .ut he has to chec out
the .est room first, and only if it suits his standards, only then , he will stay overnight.
The owner agrees, taes 5)) dollars from him as a refunda.le deposit, and the traveller goes up
to chec out his room.
6eanwhile the motel owner races to the town7s resident whore and returns the 5)) dollars he
owes her. The whore rushes to the tailor and return 5)) dollars she owes him. The tailor rushes
to the .utcher, the .utcher rushes to the tavern owner etc etc8this 5)) dollar changes hands
several times , .efore the 5)) dollar .ill comes .ac to the motel owner via the local .lacsmith
who had used the motel several times.
The traveller meanwhile declares that the motel room is .elow his standards, 9 .ut he used the
toilet for a nice crap :uietly ; collects his 5)) dollars .ac from the motel owner , gets into his
car and drives away. +ow8
!very .ody has .enefitted8the traveller had his free crap at leisure, the entire town have
repayed their de.ts in a 6!<</ =# <#0+> 2A/ , and is looing forwards to a .etter future
with renewed confidence.
This is how the American system wors.
/
'ince 99% of my readers are NOT economists , + must gi&e them a rief run down of what this
pseudo science is all aout.
(dam 'mith M4BBKN defined what was then called political economy as "an in@uiry into the
nature and causes of the wealth of nations".
Economics is a study of man in the ordinary usiness of life. +t en@uires how he gets his income
and how he uses it. +t is a science which studies human eha&iour as a relationship etween ends
and !e scarce means .
Economics is the social science that analy!es the production, distriution, and consumption of
goods and ser&ices. 0ositi&e economics Mdescriing "what is"N, normati&e economics
Mad&ocating "what ought to e"N , .ainstream economics Mmore "orthodox" and dealing with the
"rationality9indi&idualism9e@uilirium nexus"N and )eterodox economics Mmore "radical" and
dealing with the "institutions9history9social structure nexus.
Economists use gross domestic product M7<0N to keep track of how an economy is doing, which
is a flawed way. 7<0 measures the &alue of all final goods and ser&ices produced in an economy
in a gi&en period of time, usually a @uarter or a year. 'o a recession occurs when 7<0 is
decreasing. ( oom occurs when 7<0 is increasing.
The assessment of economic growth ased on 7ross <omestic 0roduct is a fallacy, ecause 7<0
is merely a measure of the amount of money in an economy. The one thing it does not measure,
which is central to economic progress Mnote progress, not growthN, is the le&el of entrepreneurial
acti&ity in a country like +ndia. <on=t elie&e me , 8ust take a flight to ,oimatore or Eudhiana .
This has important implications for the efficacy of go&ernment inter&entions and solutions to the
current economic crisis.
On a ship + 8udge an officer y his future potential. NOT y what he did in the past. (t sea we
look ahead and we do NOT look too much into the rear.
7<0 is asically the sum total of recorded usiness acti&ity at the consumption le&el plus
go&ernment spending expressed in money terms. +f the go&ernment spends more, 7<0 risesO
gi&e more money to consumers, 7<0 risesO gi&e more ank credit to consumers or usiness,
7<0 rises. ,ut go&ernment spending, 7<0 falls. This is not contentious and has nothing to do
with economic progress. +mportantly, it excludes future entrepreneurial acti&ity, except to the
extent that an entrepreneur has actually spent some money putting his future plans into action.
The osession with 7<0 means that entrepreneurial acti&ity, which is (dam 'mith=s unseen hand
that guides our future, is in&isile to economic planners.
.isleading statistics such as 7<0 are leading all go&ernments into ad policy decisions, and
their choice has narrowed down to either e&er9greater reflationary attempts to pump up 7<0, or
alternati&ely facing a collapse in the 7<0 numer as ank credit contracts.. The twin errors of
misunderstanding 7<0 are the failure to see that monetary inflation is concealing a deepening
economic depression, and it encourages policies that destroy entrepreneurial acti&ity, or
economic progress itself. This is a deadly comination, the e@ui&alent of eing in a hole and
continuing to dig.
Ce cannot expect politicians to stop digging deeper and faster when their economic ad&isers are
calling for more sho&els. (ll politicians are fully committed to the fallacies that result from
confusing 7<0 with economic progress. They pursue economic policies that are the e@ui&alent
of eating their own children.
.icroeconomics is generally the study of indi&iduals and usiness decisions, while
macroeconomics looks at higher up country and go&ernment decisions.
.icroeconomics focuses on supply and demand and other forces that determine the price le&els
seen in the economy. +t examines the eha&ior of asic elements in the economy, including
indi&idual agents Msuch as households and firms or as uyers and sellersN and markets, and their
interactions.
.acroeconomics does not adhere to a &alid scientific method and supporting e&idence cannot e
sufficiently pro&ided as there are so many factors which are totally ignored. .ost theories lack
any plausiility This is the field of economics that studies the eha&ior of the economy as a
whole , entire industries and economies. This looks at economy9wide phenomena, such as 7ross
National 0roduct M7<0N and how it is affected y changes in unemployment, national income,
rate of growth, and price le&els.
.acroeconomics would look at how an increase/decrease in net exports would affect a nation/s
capital account or how 7<0 would e affected y unemployment rate. .acroeconomics
analy!es the entire economy and issues affecting it, including unemployment, inflation,
economic growth, and monetary and fiscal policy. +t examines the economy as a whole to
explain road aggregates and their interactions "top down", that is, using a simplified form of
general9e@uilirium theory.
'uch aggregates include national income and output, the unemployment rate, and price inflation
and suaggregates like total consumption and in&estment spending and their components. +t also
studies effects of monetary policy and fiscal policy. .acroeconomic analysis also considers
factors affecting the long9term le&el and growth of national income. 'uch factors include capital
accumulation, technological change and laor force growth.
The microeconomics upon which modern macro has now een founded is indeed ull ut if we
do the micro right, then we can come up with non9ull macro. Chen the computer takes in
.icro crap, the output .acro crap will still e crap.. .aye we can come up with slightly etter
macro than what we=&e got now, ut the underlying micro is ne&er gonna to e right. Economics
is haunted y more fallacies than any other study known to man. 0roaly Economics must e
taught aout culture and human eha&ior, there can e no generalisation here.
The ottom line is that microeconomics takes a ottoms9up approach to analy!ing the economy
while macroeconomics takes a top9down approach. Ce must sho&e in food through the right
orifice and excrete it from the right orifice.
.odern economics has degenerated into a &ulgar pseudo9science. Economists could no more
explain periodic trade depressions than to predict them.
Economics is a pseudo9science and economists are its alchemists. The rating agencies are 8ust
the mo muscle for the financial companies. +n case a -othschild ank needs to s@uee!e the
aJJs of a "client" 8ust get the >pet dogA rating agency to threaten to downgrade a little it. Ce
li&e in the age of the economic engineer, where e&erything means nothing and nothing means
e&erything. 0ick a numer, any numer, and do what you like to it.
Crong9headed economics was the cause of the financial crisis. +t has rought us a mountain of
det. +t has encouraged us to waste the world=s resources without much thought for the
conse@uences. +t is ehind the rise in indi&idualism and the weakening of many democratic
principles. +t has warped our ideas of charity, social responsiility and progress.
Ce need to ditch many modern economic ideas. Notions aout the free market, competition,
regulation and trade need to e reconsidered. Ce need a different measure of progress. Ce need
to put oursel&es, our societies, ack at the core of what we want to achie&e. .odern economics
has fallen short. +t has widened the gap etween rich and poor.
+t has not allocated the world/s resources fairly. +t has rought the Cest to the rink of financial
ruin. +t has placed short9term gain efore long9term progress. (nd it has made us focus on the
indi&idual, not the society. The end result is a worldwide financial crisis of epic proportions and
a planet eing scraped clean of the resources needed y future generations, and things are only
getting worse.
The authorities could no longer calculate the risks and started relying on the risk management
methods of the greedy anks themsel&es99 or to e more precise highly paid akers co&ering
their own asses.
( pseudoscience is presented as scientific, , it lacks supporting e&idence and cannot e relialy
tested. <ue to the sheer scale and complexity of national, regional and gloal economies, no
macroeconomic theories can e relialy tested. The economy is so complex that
macroeconomists massi&ely simplify it in order to try and make some data fit their theories.
Economic models are almost totally useless, as there are trillions of factors which affect the
economy constantly. This is like calculating the 'hear forces and ending moments of a complex
ship meant to ply stormy oceans , using a rectangular arge in still haror waters.
Economics contain @uite complicated ,alculus and .ath e@uations that 8ust happens to ha&e
little or nothing to do with what it/s supposed to pro&e. To suggest economies were not generally
efficient would e heresy in many classes. Qou see (matya 'en=s wife Emma is now glorifying
(dam 'mith. (fter all he was a ser&ant of her family.
+ndian Noel pri!e winner , (martya 'en/s third wife is Emma -othschild, who is the direct
lood sister of (mschel .ayor 1ames -othschild.
*engalis who were NOT playing all and resisting Opium
culti&ation in their fertile fields were foridden to plant rice.
This was on (dam 'mith=s ad&ise to Carren hastings.
/
+n 4BK9, there was a great famine delierately introduced and
sustained killing more than 4;.$ million M 4$; lakh N *engalis.
/
?@amine has never risen from any other cause .ut the violence of government attempting .y
improper means, to remedy the inconvenience of dearth.A H (dam 'mith
(dam 'mith talks ao&e, aout the *engal famine, he initiated which killed 4;.$ million
*engalis. Carren )astings was crucified.
/
(dam 'mith had a painful death after this e&ent9as di&ine
retriution
/
Chat an king si!ed assholeT
.uch later in 49#6, -othschild stooge Cinston ,hurchill would delierately star&e :.# million
*engalis as &icious retriution to the decision of 'uash ,handra *ose to form +N( and 8ump
oats in mid9ri&er from the *ritish side to the 1ap side.
(s soon as (martya 'en won the Noel pri!e in 4995 for Economic sciences 4;.# lakh *engalis
delirious with 8oy had taken out a rally on the streets of ,alcutta, dancing for hours. )is
-othschild wife Emma rewarded him for white washing the war crime of her own family
-othschild and Cinston ,hurchill . (martya 'en/s third wife is Emma -othschild, is the direct
lood sister of (mschel .ayor 1ames -othschild.
*engalis were prohiited to plant food and all their oats . E&en ullock carts and elephants were
confiscated, as a scorched earth policyM sicTN against 1ap in&aders.'tar&ing skeletoned people in a
terrily shocking condition started pouring into ,alcutta, y the millions . They would forage ,
fight o&er scraps , and eat any sort of garage .
/
)ere is what ullshit (martya 'en wrote in his ooks and told in all foreign TL channels till e
frothed from his cancer affected mouth.
5; There was ade:uate food in Bengal at the time of the great famine in 5C3D.
(; There was +# need for Churchill to send rice to India .
D; >iverting grain ships from Australia passing India enroute to Sue, Canal every few days, was
+#T necessary
3; Bengalis did panic .uying and greedy hoarding in a disgraceful manner.
E; The local administration consisting of mainly Bengalis were corrupt and inefficient in food
distri.ution.
F; 4ow incompetence and corruption can cause famine in a land of plenty.
-; <oot cause of famine was inflation and speculative hoarding .y Bengalis. It was +#T hoarded
.y British for the army.
G; @ood was stoced 5DH more in Bengal than in 5C3D than in 5C35. 4ence it was #I for
Churchill to e"port food from India.
C; @amine cannot e"ist in proper democracy. 9 India under princely states never had famine ;
5); 5C3D famine was a local Bengali man made thing. The incompetence was native +#T of the
British.
55; Bengali producers e"ported food.
5(; 2ages of la.ourers was +#T in par with food prices. !nough food was there , .elieve me, I
saw it in the local .ania godowns .
/
*elow is a @uote from (martya 'en/s warped way of thinking. .ind you, he used great &erosity
to affle us with his ullshit , supporting (dam 'mith.
D3OTE99 *ut (dam 'mith/s defense of pri&ate trade only took the form of disputing the elief
that stopping trade in food would reduce the urden of hunger. That does not deny in any way the
need for state action to supplement the operations of the market y creating 8os and incomes
Me.g., through work programsN. +f unemployment were to increase sharply thanks to ad
economic circumstances or ad pulic policy, the market would not, on its own, recreate the
incomes of those who ha&e lost their 8os. The new unemployed, 'mith wrote, "would either
star&e, or e dri&en to seek a susistence either y egging, or y the perpetration perhaps of the
greatest enormities," and "want, famine, and mortality would immediately pre&ail...."
3ND3OTE99 *E() *E() *E()99
/
Eet us imagine a +ndian oy king of 4$ is in charge of a kingdom threatened y famine 99 as it
has happened so many times in our history. )e knows that ee&en Napoleon cannot eat thrice the
amount of rice Mor staple food like potatoN he normally eats 99 we are NOT talking aout ca&iar
here. )e will know that all a&ailale food has to e immediately secured or sie!ed , y strict
monitoring. )e will make hoarding a death penalty. %or this he does NOT ha&e to search the
whole country, where 9:% people are hand to mouth 99"there goes one more day" pattern.
)e will prohiit any family from ha&ing more than a week of food stock in their houses. )e will
introduce a fair price rationing system for people elow the po&erty line. Chen it comes to the
crunch he will gi&e a royal order that only the king/s depots can sell rice. )e will make sure
epidemics are controlled , y ad&ocating alternate foods , instead of rice 99 as usually K;% of
famine deaths are y malnutrition related diseases. )e will eliminate waste. )e will do his le&el
est to import food. )e will lea&e no stone unturned to run sur&i&al kitchens.
)e needs no (dam fuJkin= 'mith theory, to sa&e his people.
(dam 'mith was responsile for the ,hinese Opium misery. +t was his idea.
)is theory was99 ELE-Q .(N +' (EEOCE< TO 03-'3E )+' )E<ON+'T+, <E'+-E' TO
( E(C%3E ,ON,E3'+ON, (N< T)(T O0+3. +' ( "EE7+T+.(TE 0-O<3,T" . M +f you
want to know what is )edonism , go to Negril 1amaica , and check out drugged orgies on the
open each in road daylight 99 own pleasure first T screw e&eryody else TTN (EE O*'T(,EE'
TO *3Q+N7 ,)E(0 (N< 'EEE+N7 <E(- .3'T *E -E.OLE<, C)+,) +' T)E ,O-E
O% 7EO*(E+'(T+ON...
Emma -othschild/s has also done a good 8o of white washing hedonist and East +ndia company
employee, (dam 'mith &ide her ook E,ONO.+, 'ENT+.ENT'.
/
'orry Emma99here is one in the eye for you, elow 99 M ao&e picture is of -ichard ,antillon N
(dam 'mith/s rilliance cannot e @uestioned with economists around you,unless you want to e
insulted. n. (ny errors he made were excused as the ine&itale flaws of any great +D asent
minded professor..
/(dam 'mith ties/ were worn as a adge of honour in the upper echelons of the -eagan
(dministration. Noody would wear a )itler tie, rightF
.arxists, hail (dam 'mith as the ultimate inspiration of their own %ounding %ather, 7erman 1ew
2arl .arx, who was related to -othschild.. +ndeed, if the a&erage person were asked to name
two economists in history whom he has heard of, 'mith and .arx would proaly e the
runaway winners of the poll.
(dam 'mith originated nothing that was true, and whate&er he originated was ull. (dam 'mith
was a shameless plagiarist, from the works of -ichard ,antillon.
.ayer (mschel M(nselmN -othschild, was orn in 1uddddenstrasse %rankfurt am .ain, 7ermany
in 4B##, and is held to e the founder of the famous )ouse of -othschild. *ut his money lending
father had financial interests in othe 7ermany and %rance.
-ichard ,antillon M4K5;s H .ay 4B6#N was an +rish9%rench anker and economist . )e wrote the
!ssai sur la +ature du Commerce en =JnJral MEssay on the Nature of Trade in 7eneralN, a ook
considered y Cilliam 'tanley 1e&ons to e the "cradle of political economy" .
<uring the late 4B4;s and early 4B$;s, ,antillon speculated in, and later helped fund, 1ohn Eaw/s
.ississippi ,ompany, from which he ac@uired great wealth.
/
,antillon was influenced y his experiences as a anker Essai is considered the first complete
treatise on economics, with numerous contriutions to the science. These contriutions includeR
his cause and effect methodology, monetary theories, his conception of the entrepreneur as a
risk9earer, and the de&elopment of spatial economics. (dam 'mith copied from ,antillon/s
Essai .
+n 4B4K, the %rench go&ernment granted him oth permission to found the *an@ue 7UnUrale and
&irtual monopoly o&er the right to de&elop %rench territories in North (merica, named the
.ississippi ,ompany. Essai was not pulished until 4B:: as a result of hea&y censorship in
%rance, it did widely circulate in the form of an unpulished manuscript etween its completion
and its pulication .
(dam 'mith lifted ,antillon=s sustenance theory of wagesVwhole sale.
(dam 'mith not only contriuted nothing of &alue to economic thoughtO his economics was a
gra&e deterioration from his predecessors.
The mystery of (dam 'mith, then, is the immense gap etween a trumped up reputation M ashe
rued shoulders with -othschild N and the sordid reality. The Cealth of Nations was made to
lind all men, economists and laymen alike.
The Cealth of Nations exerted such a colossal impact on the world thanks to -othschild and East
+ndia ,ompany, that all knowledge of pre&ious economists was lotted out, hence 'mith/s
reputation as %ounding %ather.
Enough of false god and plagiarist (dam 'mith and his reflected
rillianceT
,apitalism has to e understood and re8ected in its entirety. ,apitalists, do not create wealth.
Corkers do. Corkers are not dependent on the capitalist class ut could run society in their own
interests within common or co9operati&e ownership and democratic control. ,apitalists are
dependent on the exploitation of workers for their wealth and attached pri&ileges.
,apitalism enefits capitalists, not workers . ,apitalist economics is the employer/s set of ideas
and rules to keep workers in their place. Qou will not hear ,hancellors of the Exche@uer
lecturing the ,*+ to make less profit and gi&e workers higher wages ut you will always hear
,hancellors telling workers to e more producti&e and not to take increased pay rises and
onuses.. *ut one thing they do not ha&e is an understanding of is their own su8ect matter.
Economists students must ask how the profession had een lind to the fact that its theories were
leading people down the wrong path. The oft repeated paradigm that the market corrects itself, is
sheer ull. Economists assumption that e&eryone in an economy can orrow at the same risk9free
rate is pure ull.
Cithout a rethink, we face the end of growth. Ce face the end of progress. Ce face more
po&erty, greater conflict and rising ill9health. Eife expectancies will fall, as will standards of
li&ing. +n de&eloped countries, health care, sa&ings and pension promises will e roken. +n the
third world hopes for de&elopment will not e met. Tensions etween peoples will grow.
Ce ha&e to re9ground it in a new paradigm. ( new economics can only e originated y a new
outlook on &alue and wealth. The 7<0 cannot e considered a measure for the standard of our
li&es.
.odern Economists M especially the ones who snort ,ocaine N are strongly influenced y their
testosterone le&els.
.ainstream economic and financial models, the ones that currently rule the markets and
determine &alue, ha&e shifted their focus o&er the years from what is est for the society they
should try to model to what is mathematically possile to achie&e for maximi!ing enefit of a
few. .ost economists and financiers are nothing more than >hands onA mathematical laourers
and their models are pseudo science.
.ainstream economic and financial models pursue an idea of &alue that is di&orced from any
concept of the general wealth and well eing of human eings and society.
0re&ailing models are ased on a totally dri&en y the lust for indi&idual profit. These models
are rooted in the win9lose paradigm . They call it >competitionA and a gigantic and ineffecti&e
apparatus has een unfairly created to >ensureA fair competition.
The starting point is to define what the role of the go&ernment should e and which policies an
economic model should mirror. (ny go&ernment should first and foremost protect the freedom
of its citi!ens under the constitution. %or an +ndian who suffered 5;; years of sla&ery V it is
freedom from any risk of sla&ery. Ce do NOT want to e a anana repulic where each and
e&ery .inister and .0 of the ruling party is paid ries y huge corporations like Calmart ,
Ledanta or .onsanto.
Ce the flies must ha&e the aility to protect oursel&es from huge spider enemies and freedom
from tyranny. 0eople must ha&e the entrepreneurial freedom to start own small "pop and mom"
&entures and usiness. There must e a network of support for the de&elopment of any form of
free enterprise.
None of the economists are prepared to see the o&ious ecause it is not in their e@uations and
wish lists. ,rap in e@uals crap out, no matter how you dress it up in fancy maths which in any
case only a small percentage of people can understand. +t/s 8ust aout amoo!ling the masses so
they don/t @uery what ull they are eing told.
E&ery e@uation in neoclassical economics is ruish. The differential e@uations descrie
nothing. Economics is not aout mathematics, it is aout the human eing99 in a complex
country like +ndia. Lirtually all commonly held eliefs aout economics99whether espoused y
"affle them with ullshit" political acti&ists, politicians, 8ournalists or taxpayers99 are 8ust plain
wrong.
Economics will always e ullshit ecause it relies on the premise that human eings eha&e in a
systematic way, when they don=t. Ce cannot predict consumption/sa&ing/in&esting eha&ior in
long9lasting ways. ",ulture" is a inexplicale, chaotic force that makes economics hopeless.
There/s no guarantee that what may hold today will hold tomorrow. 'cience rests on the
assumption that the mechanisms of the 3ni&erse are stale. Chen that assumption fails,
economic science fails. E&en if the macroeconomy is incredily chaotic, the economists use
rute9force computer power to make short9term forecasts, like how weather forecasters do.
Economics pre&iously was not a &ery mathematical science, at least compared to the way it is
today. Economists used to write articles with &ery few e@uations, or e&en without any e@uations
at all.
0eople don=t understand complicated math, so economists can automatically win arguments with
someone who cant understand math. Nowadays, most papers on economics ha&e complex
e@uations in them. (ll economists ha&e to e ale to talk aout their ideas using grandiose
mathematical models and statistics, or other economists won=t respect them. This is part of what
is called eing ale to >think like an da!!ling economist.A
Economists still like wearing their 69< glasses after the 6< Titanic mo&ie is o&er and they dri&e
home to go to ed with great self importance.
Economics starts with assumptions and then tries to do &oodoo math with the assumptions. Chy
are the ignorant and low +D politicians and commentators who confidently speak economic
nonsense treated as sagesF (nd why do so many 8ournalists uncritically repeat their nonsenseF +f
not they may lose their 8os, rightF The news media la&ish on high9profile politicians and
pundits who affle people with confident ull with asolute certainty 99on matters aout which
their own words show they know nothing.
Too few people in pulic life understand economics, numers or algera. None of them did .ath
or ,alculus in college. )ardly any rememer, the crucial concept underlying matters of
economics and finance known as accounting identities.
(ccounting identities are statements that must e true no matter how you arrange the
components. Thus $W4X6 8ust as 694X$. Eikewise, net worth e@uals assets minus liailities 8ust
as assets e@ual liailities plus net worth and profits e@ual re&enue minus costs.
+ ha&e NOT yet seen an economist who can sol&e a simple math elow, which e&en a illiterate
chai9wala oy in ,alcutta can do.
Three friends go to a .ar for drining .eer 9 costing 5) dollars a .ottle ;
As usual they tae out one 5) dollar .ill each from their wallets and gives the waiter, D nos 5)
dollar notes or D) dollars.
The .ar owner is in a e"pansive mood and he tells the waiter -- %happy hour time* -- give them E
dollars .ac**-- i will charge only (E dollars for D .eers today %.
The clever waiter nows E dollars cannot .e split .etween D regular dutchmen. so he pocets (
dollars and returns D one dollar notes .
The three of them put .ac one dollar each into their respective wallets. Initially each wallet
had one 5) dollar .ill--now it has only one single dollar .ill.
Now comes the perception partR
(ll three of them spent 9 dollars each99 $B dollars total.
The waiter got $ dollars.
C)E-E +' ONE <OEE(- 7ONE99 0OO%FFF
*e honest to yourself and dont read further, till you figure this out.
Qou tell an accountant without perception to gi&e you a deit/ credit accounts statement99and see
the way he sweats.
'ee literacy has nothing to do with perception. ( illiterate chaiwala oy in mumai can make an
ass out of you, when it comes to accounts.
<aft accountants make a mistake when it comes to "receipts" and " alance ".
)ere in this case it is 9 6;W;X $BW6.
Opening cash W receipts X spent cashW alance cash. +t can ne&er e&er e 6;96W$X$9
'ee, you cant argue with dorks. $ dollars is something which happened in the mann mandir of
the waiter. )ow do you know that he stole $ dollars F (ccounting has to e o8ecti&e.
This is where the economists confidence goes for a toss.
+n economics, 7ross <omestic 0roduct e@uals consumer spending plus go&ernment spending
plus in&estment plus the net of exports and imports. Or in its simplest formR 'pending X Output
X +ncome. One can predict that , o&er the long term, if marginal costs exceeds marginal
re&enues, then a firm will go roke.
Economists are charlatans hired y politicians to push a particular point of &iew, mas@uerading
as sure science. 0oliticians know &ery well how to fix the economy, ut their masters, linded y
greed, refuse to let go. Our minds are raped with the scientific nonsense. +t is all aout greed.
That is the only element dri&ing our economic system, which is called capitalism, is greed.
/
Economic models try to simulate the real uni&erse of commerce, with idiotic assumptions ased
on ',(NTQ +N%O-.(T+ON , which of course will lead to stupid predictions. Natural science
models can predict more accurately ecause they deal with simple inputs. )uman eha&ior can
ne&er e&er e a simple input.
.odern economics is osessed with modelling. ( mathematical model is a predicti&e tool
created to demonstrate the outcome of e&ents in a o&er simplified alternate uni&erse.
.athematical economic theories cannot accurately predict the future. This is NOT a calculation
like low tide9high tide or sunrise9 sunset time.
0hysicists can &ery accurately model the tra8ectories of rocks in space. *ut economists cannot
accurately model the tra8ectories of prices, employment and interest rates down on the rocky
terrain. 'o they make the map more important that the terrain.
Economics V and economic decisions, from the macro to the micro le&el V is a human su8ect.
+t is sutle and psychological and sporadic. ( human su8ect re@uires human language, human
emotion, human intuition.
The grand theoretical9mathematical approach to economics is fundamentally flawed. Trying to
smudge the human reality of economics and politics into cold mathematical shackles is
degenerati&e.
The pseudo9scientific school of mathematical economics hungers and cra&es for a perfect world,
where each ri&er is the same, where there is no utterfly effect, where human preferences are
expressed in e@uation form, where there is no sutlety or amiguity or uncertainty.
Economics students waste 6 years, learning to fiddle with udget constraints and production
functions, and using constrained maximisation to sol&e irrele&ant prolems that are completely
detached from reality. They are gi&en completely aritrary utility functions and aren/t told why
those functions are appropriate to use. (nd then, when they ha&e sol&ed these archiac prolems,
they are told that it "pro&es" that the free market works, and that the price signal ensures
efficiency.
The whole purpose of economics is to 8ustify the status @uo, to act as apologists for
en&ironmental degradation, income ine@uality and neolieral capitalism. +f the student tries to
inno&ate with ethical arguments he is accused of not "thinking like an economist". )e is
supposed to argue on ehalf of the delusional (dam 'mith that throwing people out on the streets
is the rational policy to pursue.
+ honestly don/t see why economics continues to e taught . +t is a complete pseudoscientific
discipline with no redeeming features that has contriuted to a huge numer of prolems in this
world. +t/s no etter than withcraft, and it/s conse@uences are much more se&ere
Ce need people to start speaking out against this discredited "science" efore it damages any
more li&es.
The )uman -ace will only make progress once economics is no longer susidised and taught at
our prestigious uni&ersities, and is only mentioned in history classes as a prime example of a
discredited science from the past.
)ow can you 8ustify an academic discipline that/s sole purpose is to act as apologists for an
economic system that has failed a significant percentage of the world population and it/s inherent
weaknesses responsile for the worst financial crisis since the Call 'treet ,rashF +/m NOT
saying that we should only e taught .arxist theory, ut there is no alance in economics
whatsoe&er. The su8ect is completely di&orced from reality, and when empirical e&idence goes
against theories Mlike, as if if reality doesn/t correspond to right wing theory, it/s reality that/s to
lame. No proper science would operate like this.
Chene&er scholars from other disciplines try to deunk economic theories, they/re called left
wing idiots. Chen other heterodox economists criticise economics, they/re called cranks, without
any attempt to rationally deate their arguments. Economists lo&e presenting their work as
scientific howe&er, many of their theories can ne&er e&er e reliale tested, ecause people/s
"utility" functions simply cannot e measured in any sense
5;% of economics these days is empirical. Economics is a complete pseudoscientific discipline
with no redeeming features that has contriuted to a huge numer of prolems in this world.
+n science, theories and models are tested against reality. +f they are contradicted y confirmed
e&ents, theories are either modified or re8ected. +n the long run there is a winnowing out process
which selects one or a few theories as eing most proaly correct. +n a pseudoscience, no such
winnowing out occursR when confronted with strong e&idence against a pseudoscientific theory,
either the e&idence is dismissed whole sale or reinterpreted to conform to theory.
Or the theory is reinterpreted to make it consistent with the data. (andonment of the theory is
ne&er e&en an option. There has een no winnowing out of economic theories. Chen an
"impossile" e&ent occurs the theory is simply tweaked and reinterpreted to conform to the new
situation. 'o we ha&e unstale sky scrapers, too dangerous to li&e in.

Noody in thier senses will e&er say that that economics is e&en a science in the strictest
definition of the term. 'ocial 'ciences in general are not science in it=s strictest sense. To hold
economics or political science to the strictest scientific method is impossile..
0roduction of wealth should NELE- e tied to its distriution. The former is in the field of
"applied economics" while the latter elongs to "social economics" and is largely a matter of
power and politics.
E&en the est economists cannot make exact predictions aout future e&ents. Chat is the current
state of economics todayF ,ontemporary economics appears to rest in a state of polari!ation
etween two opposing philosophiesR capitalism and neo9.arxism. *oth are flawed.
Economics fails to take into account human nature as the greatest dri&er of eha&ior and when it
does, it does NOT understand culture and priorities .)uman nature is studied in the sufield of
eha&ioral economics, which essentially tries to explain why people are >irrational.A
Duantitati&e metrics, such as per9capita income and median income, are flawed, primarily
ecause they can easily e skewed y the higher wealth of small communities where wealth is
highly centrali!ed. Dualitati&e metrics and sociological examination are needed.
03T ON QO3- )E(< 0)ONE' (N< E+'TEN TO T)E L+<EO *EEOC99
)ow did the crash of $;;9 happenF
"UOTE R *efore the recession , the $;;$H$;;5 period encouraged high9risk lending and
orrowing practicesO international trade imalancesO real9estate ules that ha&e since urstO
fiscal policy choices related to go&ernment re&enues and expensesO and approaches used y
nations to ail out trouled anking industries and pri&ate ondholders, assuming pri&ate det
urdens or sociali!ing losses.
The 3.'. %inancial ,risis +n@uiry ,ommission reported its findings in 1anuary $;44. +t
concluded that "the crisis was a&oidale and was caused yR Cidespread failures in financial
regulation, including the %ederal -eser&e=s failure to stem the tide of toxic mortgagesO <ramatic
reakdowns in corporate go&ernance including too many financial firms acting recklessly and
taking on too much riskO (n explosi&e mix of excessi&e orrowing and risk y households and
Call 'treet that put the financial system on a collision course with crisisO 2ey policy makers ill
prepared for the crisis, lacking a full understanding of the financial system they o&ersawO and
systemic reaches in accountaility and ethics at all le&els.>
(uthor 3pton 'inclair M45B5H49K5N famously statedR "+t is difficult to get a man to understand
something when his 8o depends on not understanding it."
+n the years leading up to the crisis, the top four 3.'. depository anks mo&ed an estimated S:.$
trillion in assets and liailities off9alance sheet into these '+L/s and conduits. This enaled them
to essentially ypass existing regulations regarding minimum capital ratios, therey increasing
le&erage and profits during the oom ut increasing losses during the crisis. (s the shadow
anking system expanded to ri&al or e&en surpass con&entional anking in importance,
politicians and go&ernment officials should ha&e reali!ed that they were re9creating the kind of
financial &ulneraility that made the 7reat <epression possileVand they should ha&e
responded y extending regulations and the financial safety net to co&er these new institutions.
(s long as the damage caused to people, cultures, and ecosystems is not denominated in money,
it is in the realm of other, off the alance sheet. The same goes for usiness accounting, in which
costs can only e externali!ed when the payer is, again, off the alance sheetVan other. To the
extent that we identify with our communities, we cannot export costs to them.
*y pursuing his own interest he fre@uently promotes that of the society more effectually than
when he really intends to promote it.
/
The ha'o/ 0a!1i!) 2t$+ is the collection of financial entities, infrastructure
and practices which support financial transactions that occur eyond the reach of existing state
sanctioned monitoring and regulation. +t includes entities such as hedge funds, money market
funds and structured in&estment &ehicles M'+LN. +n&estment anks may conduct much of their
usiness in the shadow anking system M'*'N, ut most are not '*' institutions themsel&es.
/
The core acti&ities of in&estment anks are su8ect to regulation and monitoring y central anks
and other go&ernment institutions 9 ut it has een common practice for in&estment anks to
conduct many of their transactions in ways that don/t show up on their con&entional alance
sheet accounting and so are not &isile to regulators or unsophisticated in&estors.%or example,
prior to the financial crisis, in&estment anks financed mortgages through off9alance sheet
securiti!ations and hedged risk through off9alance sheet credit default swaps.
/
The &olume of transactions in the shadow anking system grew dramatically after the year $;;;.
*y late $;;B the si!e of the '*' in the 3.'. exceeded S4; trillion and y late $;44 had increased
to S$# trillion according to the %inancial 'taility *oard. 7loally, a study of the 44 largest
national shadow anking systems found that they totalled to S:; trillion in $;;B, fell to S#B
trillion in $;;5 ut y late $;44 had climed to S:4 trillion, 8ust o&er its estimated si!e efore the
crisis. O&erall, the world wide '*' totalled to aout SK; trillion as of late $;44.'hadow
institutions do not accept deposits like a depository ank and therefore are not su8ect to the
same regulations. ,omplex legal entities comprising the system include hedge funds, structured
in&estment &ehicles M'+LN, special purpose entity conduits M'0EN, money market funds,
repurchase agreement MrepoN markets and other non9ank financial institutions.
/
'hadow anking institutions are typically intermediaries etween in&estors and orrowers. %or
example, an institutional in&estor like a pension fund may e willing to lend money, while a
corporation may e searching for funds to orrow. The shadow anking institution will channel
funds from the in&estorMsN to the corporation, profiting either from fees or from the difference in
interest rates etween what it pays the in&estorMsN and what it recei&es from the orrower.The
shadow anking system makes up $: to 6; percent of the total financial system, according to the
%inancial 'taility *oard M%'*N, a regulatory task force for the world/s group of top $;
economies .
This largely unregulated sector was worth aout SK; trillion in $;4;,.Eike traditional anks,
shadow anks pro&ide credit and li@uidity ut, unlike their traditional counterparts, they do not
ha&e access to central ank funding or safety nets like deposit insurance. 3nlike traditional
anks, shadow anks do not take deposits. +nstead, they rely on short9term funding pro&ided
either y asset9acked commercial paper or y the repo market, in which orrowers offer
collateral as security against a cash loan and then sell the security to a lender and agree to
repurchase it at an agreed time in the future for an agreed price. They are often ased in tax
ha&ens, in&est in long9term loans like mortgages, pro&iding credit across the financial system y
matching in&estors and orrowers indi&idually or y ecoming part of a chain in&ol&ing
numerous entities, some of which may e mainstream anks.
/
(s shadow anks do not take deposits, they are su8ect to less regulation than traditional anks.
They can therefore increase the rewards they get from in&estments y le&eraging up much more
than their mainstream counterparts and this can lead to risks mounting in the financial system.
3nregulated shadow institutions can e used to circum&ent the strictly regulated mainstream
anking system and therefore a&oid rules designed to pre&ent financial crises.
+n 1anuary $;4$, the gloal %inancial 'taility *oard announced its intention to further regulate
the shadow anking system, in the interests of the real economy.
The full extent of the shadow anking system was not widely recognised until work was
pulished in $;4; y .anmohan 'ingh and 1ames (itken of the +nternational .onetary %und,
showing that when the role of rehypothecation was considered, in the 3.'. the '*' had grown to
o&er S4; trillion, aout twice as much as pre&ious estimates.
This een implicated as significantly contriuting to the gloal financial crisis of $;;BH$;4$.
/
The rapid increase of the dependency of ank and non9ank financial institutions on the use of
these off9alance sheet entities to fund in&estment strategies had made them critical to the credit
markets underpinning the financial system as a whole, despite their existence in the shadows,
outside of the regulatory controls go&erning commercial anking acti&ity. %urthermore, these
entities were &ulnerale ecause they orrowed short9term in li@uid markets to purchase long9
term, illi@uid and risky assets. This meant that disruptions in credit markets would make them
su8ect to rapid dele&eraging, selling their long9term assets at depressed prices.
/
Economist 0aul 2rugman descried the run on the shadow anking system as the "core of what
happened" to cause the crisis. "(s the shadow anking system expanded to ri&al or e&en surpass
con&entional anking in importance, politicians and go&ernment officials should ha&e reali!ed
that they were re9creating the kind of financial &ulneraility that made the 7reat <epression
possileVand they should ha&e responded y extending regulations and the financial safety net
to co&er these new institutions. +nfluential figures should ha&e proclaimed a simple ruleR
anything that does what a ank does, anything that has to e rescued in crises the way anks are,
should e regulated like a ank." )e referred to this lack of controls as "malign neglect."
UN"UOTE

,ompetiti&e indi&idualism actually destroys societies dependent on team dynamics , as it
undermines the moral consensus holding human communities together. )uman welfare is est
measured y the market9ased national product accounts Mper capita productsN
<uring the (ge of Enlightenment society flourished, propelled y the wonder of new
disco&eries, radical ideas for economic and social de&elopment, and a sense that we all had a
responsiility to impro&e our world. +t/s time to get ack to those lofty ideals, step ack ,
examine and re9e&aluate our &alues, and work out what humankind really needs.
(ll percepti&e students of economics on this planet 99 please
start demanding answers from your professors V + am sure you
know that you are eing taught empirical pseudo9science in
college.
+f it is lasphemy so e itT The emperor is naked indeed , and you must expose him TT
Ce must make a new win9win model ensuring the down trodden are not left ehind, with
freedom from >risk of going ack to sla&eryA as numer one condition.
Ce must NOT confuse 7<0 with economic progress. Ce are destroying entrepreneurial acti&ity
and urning our own aies.
+N O-<E- TO '(LE T)E CO-E< %O- )3.(N )(*+T(T+ON, CE .3'T 'TO0
TE(,)+N7 %E(CE< E,ONO.+,'T
Economic theory astracts from &irtually anything ha&ing to do with time. (ll of it is a 6<
graphVtime must e taken into account. Ce are NOT intelligent or percepti&e to talk in #<.
/
*ut we all know the planet sur&i&ed &ery well efore (dam 'mith and -othschild/s mistress (yn
-and cooked up super9man 1ohn 7alt ,rightF
/
E-o!o+it +#t 0$ lat$(al thi!1$(3
(TE(' ')-377E< was written in 49:B, y a 1ewish -ussian (merican y the name of (yn
-and M (lisa -osenaum , orn 49;: , from 't 0eterserg N . 'he has put herself in the ook as
<agney Taggart99the heroine.
The hero was of course 1ohn 7alt, who is clearly 0hillipe -othschild. The ook glorifies
capitalism and the &irtues of selfishness99 typical of Yionist ankers and %ree .asons. 1ohn 7alt
does not make an appearance in the no&el till it is $/6 o&er.
*ut he gets a great introduction 99 rather his reputation precedes him, y the constant corny rain
thumpin/ refrain " Cho is 1ohn 7altF "
99 the readers are now in the common @uest to disco&er this answer ri&alling the holy grail .
(s the ullshit plot unfolds 1ohn 7alt is turn out to e a creati&e in&entor, the great all (merican
1ewish capitalist who has all the grey matter and moolah. )e and his 1ewish industrial leader ilk
are supposed to hold the urden of this planet9 like how (tlas held up the whole world on his
shoulders , as per 7reek mythology.
/
'o in $;;599 as per the 1ohn 7alt lue print 99 1ewish Eehman rothers went ankrupt first 99
causing the <EE+*E-(TE <O.+NO E%%E,T.
The whole worlds wealth 'EE% <E'T-3,TE< ON ,O.03TE- and suddenly &anished 99 this
is the essence of financial engineering 99
POOOOO4443
Trillions of <ollars were then spent to ail out and pre&ent the world system from collapsing
%3-T)E- and total fiasco.
/
This ail out money would e the common poor mans/ future tax urden.
3' %ederal -eser&e which is a pri&ate Yionist 1ewish organisation M it is NOT owned y 3'
go&ernment N in8ected illions of dollars into the (merican anking system.
Other anks had to follow suit and Call 'treet was rought on its knees, 7loal e@uities
including in +ndia nose di&ed.
+.% lead y -othschild man 2ahn and +*-< would make trillions of dollars a&ailale to
struggling countries, and put them in the &ice of det traps . The %ed ga&e $ Trillion dollars in
loans to ,itigroup , .organ 'tanley etc.
/
The crash of $;;5 had een planned for se&eral years99as a inner *ildererg clu decision.
+t did NOT happen o&ernight.
( piece of ad&ise for our new patriotic " Economic Carriors"
who can make a difference, for *harat .ata.
<well o&er it. .ake a ,)(N7E for the etter.
As !instein said, we cant solve our comple" pro.lems with the same colonial mindset and
thining that created them.
.aking easy money y digging up and shipping it o&erseas is NOT the economy model we wish
for. This has een o&erdone y corrupt politicians who wanted kickack accounts in foreign
'wiss anks.
The need to dri&e the economy growth must e alanced with the need to care for our down
trodden people and the need to protect our en&ironment . The economy is 8ust a tool we in&ented
for go&erning the relationship etween people, and etween people and nature.
Ce need to faricate new economic tools. Ce need to gi&e incenti&es for > reuse and recycleA.
+ndia=s prosperity depends upon our collecti&e wisdom, our health, our creati&ity and on a
healthy en&ironment.
7<0 8ust measures what we make and consume, not who we are Mour human and social capitalN
or where we li&e Mour natural capitalN. +t totally disregards the e&er widening chasm etween
ha&es and ha&e nots. Eet some ha&e nots e in&ited on our foreign funded TL , instead of Eord
.eghnath <esai prototypes.
(dam 'mith dri&en economists lo&e a catastrophe in our country. They generate economic
acti&ity, regardless of the human cost, rightF.
7<0 is useful for its purpose H for predicting tax re&enues , for example H ut it cannot e seen
as the ench mark , of our progress as a nation and our entrepreneur dri&e .
The 7N0 does not allow for the health of our children, the @uality of their education, or our
patriotism to our elo&ed country, which roke the chains of 5;; years of sla&ery, 8ust K: years
ago. Ce need a dri&er in the dri&ers seat with 4;;% +ndian <N(Vand not an +talian waitress.
7N0 measures e&erything , except that which makes life worthwhile in +ndia. (nd we ha&e
simple tastes and we are a happy family .
0roducti&ity is a word that suffers terrile ause at the hands of (dam 'mith dri&en usiness
loyists .
There must e some dang e&idence that allowing workers to e treated more harshly and
unfairly does anything to impro&e society.
0roducti&ity gains are est found through in&esting in the future of +ndian economy H through
constant prioriti!ation of needs, education, -I<, health and etter management of our ountiful
resource .
)ealthier people are more producti&e workers, with fewer sick days. ( etter educated
population is a more producti&e population. ,learly we need to get our priorities straight.
Chy do we gi&e illions to multi9national corporations like Ledanta and not more assistance to
cottage industaries and pop and mon small usinessesF
The Cest has gone ack to clean ri&ers , lue skies and green fields. Ce must protect our
en&ironment also helps people, creates 8os and helps the economy.
Ce must not allow desh drohi politicians and money ags, to pander to e&il companies like
.onsanto, who will ury our food security. No food for 4.6 illion people means ci&il war, and
this is what the 8ealous Cest wants.
/
.onsanto came to +ndia for selling genetically engineered seeds y riing +ndian politicians.
'onia 7andhi fa&ours .onsanto. Once you get into the pay roll of .onsanto there is NO way
out. +t is 8ust like doing a fa&our for any drug cartel . Once +N there is no way O3T.
Thanks to .onsanto the ee population on this planet has declined. This is dangerous as ees are
essential for pollination. Nil ees and the planet will die in less than a decade. Chen ees are
affected y pesticides they inuilt radars get shut down, and they get lost.
This e&il monster has taken away the age old farmers right to use their own grown seeds . Ce
ha&e to uy seeds from .onsanto , as .onsanto 7. seeds are terminator seeds or sterile seeds.
(nd like how *ill 7ates changes the Cindows &ersion , .onsanto also started their Lersion 4 ,
Lersion $.$ seeds99or99 second / third generation seeds. 'o the farmers had to orrow money
from money lenders, and get themsel&es into a det trap, with declining yield crops.
/
,ontrary to .onsanto claims genetically engineered seeds does NOT increase the yield. The
.onsanto method has gi&en irth to 'uper Ceeds and 'uper 0ests, as they ecome resilient.
7round water is now polluted as more deadly pesticides ha&e to e used in greater doses.
)onestly +ndians are eing used as guinea pigs , all under the lessings of our politicians and
foreign funded doule agent N7Os99who ha&e 'wiss ank accounts. *y the way 'wiss anks are
owned y -othschild.
Today if you &isit hospitals in +ndia the kidney and li&er sections are full . Our old people get
(l!hiemers which was ne&er heard of in +ndia thanks to 7. seeds. Chom do we need to thankF
Ce can make this &ision a reality, ut only if we recognise that
the economy needs to ser&e the needs of people and nature, not
the other way around.
/
,(0T (1+T L(<(2(Q+E
..
0osted y ,apt. (8it Ladakayil at 4;R:# 0. /
56 -o++$!t7
4.
Sumesh S +am.oodiri 'eptemer $:, $;4$ $R4K (.
Thanks a lot..
'umesh
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Capt. Ajit Vadaayil 'eptemer $:, $;4$ KR4: (.
shyamalganguly M3'(N replies to a8it &adakayil
7oldR :#B6B#$
Qou are doing a great 8o in exposing pseudo sla&e economists of +ndia like .anmohon
'ingh, .ontek (hluwalia and (martya 'en. +t would e great if you could write
something aout the citadels of .anagement 'tudies called ++.. E&en well trained
engineers from ++T go there to get rainwashed after graduating from ++Ts. + ha&e seen
++. candidates getting starting salaries in e&en +ndia which are outrageously out of tune
with the 8o market. (re these all riggedF *TCR ha&ing troule with re,(0T,)(. ,an
not sumit response on your log.
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6.
Capt. Ajit Vadaayil 'eptemer $:, $;4$ KR$4 (.
hi shyamal,
a supreme example is ,)ET(N *)(7(Tm who is a rothschild propaganda man.
i ha&e put a para for him at the ottom of my post 0E-,E0T+ON (N< -EE(T+L+TQ9
L(<(2(Q+E.
lot of people are groomed like this y foreign masters 99 example of arundhati roy, amish
tripathi etc.
chetan hagat had the gall to ask aa ramde& how to cure homosexuality etc in a drisi&e
manner .
this is why for assholes like chetan hagat i ha&e put a post QO7( (N< (Q3-LE<+,
.(''(7E %O- <-(+N+N7 EQ.0) NO<E'9 L(<(2(Q+E.
when a man is o&ersexed he will put his dong into a hole in a wall tooTT
capt a8it &adakayil
..
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#.
I<IS4+A+ K!<I+I01A6 'eptemer $:, $;4$ #R;B 0.
<ear ,apt (8it Ladakayil,
+ 8ust had a cursory glance due to paucity of time and sa&ed the entire material for a &ery
leisure reading. 'imply a piece of mar&ellous work. .y congratulations. 0lease keep it
up.
2rishnan
't.Eouis
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:.
nvltec 'eptemer $:, $;4$ BR;B 0.
,apt, the salaries of ++. grads is 8ustifiale if we see the amount of profits that their
employers make out of crony capitalism and their links with the politicians. The paid
media ne&er others to go ack and check those companies which offered large
renumerations during last few years to &erify if they were among those implicated in the
recent scams or some or the other corporate relations with companies like Ledanta etc.
Cealth .anagers who manage wealth generally end up managing the lack money
routed thru hawala etc.
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K.
Capt. Ajit Vadaayil 'eptemer $:, $;4$ 5R;: 0.
hi,
,)ET(N *)(7(T is now eing hea&ily sponsored. ha&e you read his <(%T ooksF
he talks aout how much rent he paid in hongkong while working for goldman sacs, and
impressed all the mangy indians.
after eing to hongkong more than 4;; times o&er the past #; years , this type of rent is
what you pay for a ONE *E< -OO. (0(-T.ENT at the seaface.
LE<(NT( is controlled y rothschild.
punch into google search *(3Z+TE .+N+N7, N(Z(E .EN(,E9 L(<(2(Q+E.
now all the mormons M american arm of rothschild/s religion N in india are feeling &ery
happy that mitt romney will ecome the new 3' president as i had predicted $ years ago,
in se&eral of my log posts.
god sa&e india.
if you write a comment against &edanta in the e news like TO+ or E,ONO.+, T+.E'99
immediately you
will e attacked y monkeys with ausi&e comments99
(EE (-E 7O-(' C+T) %(E'E +N<+(N )+N<3 +NTE-NET N(.E'.
capt a8it &aadkayil
..
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B.
Sudhan 'eptemer $:, $;4$ 5R$6 0.
)ats Off,
<ear ,apt (8it,
Lery good research study and the so called economics is designed for top usiness people
the ankers and insurance companies,
this will end soooon ecause it is slowly reali!ed y pulic.
that/s why god has created internet which can not y destroyed.
2eep posting and god less you.
Narayana.....
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-eplies
4.
j.or 'eptemer $:, $;4$ 4;R4B 0.
)ilarious. 7od has created +nternetF +t has een created y goras, that too 3'
army research.
<elete
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5.
Anil <eddy 'eptemer $:, $;4$ 9R:; 0.
+ knew few things aout -othschild, 3' %edreal *anking and Opium I Tea trades. *ut
there are more than + could read in 4 sitting. + lo&ed it all the way.
+f could also please elaorate on how to do our homework for +n&estments in this rotten
economy.. + would really appreciate your inputs.
Thank you so much.
(nil -eddy
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9.
Capt. Ajit Vadaayil 'eptemer $:, $;4$ 44R4; 0.
hi 8or,
the goras who creates internet , google , apple etc were all )+00+E' who came walking
all the way to india in the sixtees.
punch into google search 'TELE 1O*' 9 L(<(2(Q+E.
pre&iously tge goras knew only how to T(2E99 after they came to india they understood
the 8oy of 7+L+N7.
capt a8it &adakayil
..
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-eplies
4.
j.or 'eptemer $K, $;4$ $R;4 (.
Not @uite the way you put it. )e actually learnt from the flaws in +ndian culture.
%rom his iographyR
"'te&e was disillusioned with the po&erty he encountered in +ndia and found it
hard to reconcile this with the high spiritual ideals of the country. )e had a
urning desire to help the masses ut he gained insight during his trip that the way
out of po&erty was not through socialism or spirituality ut through technology
and capitalism."
.a8ority hippies who come to +ndia ultimately reali!e the flaws of the swamis of
today. <on/t get me wrong. + am a ig elie&er in spiritualism, especially the way
Li&ekananda approached it, where he tried to merge the ancient &edas with the
latest scientific wisdom Mut not forcefullyN. .y feeling is that, if the scholars
from the Ledic age were around, they would ha&e een first9grade scientists
Mphilosophically similar to (merican scientists and hippies of the mid949;;sN
ecause they often wondered aout cosmology and the stars. They would not e
like the fraud, unintelligent swamis and yogis we see today.
<elete
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4;.
Capt. Ajit Vadaayil 'eptemer $:, $;4$ 44R46 0.
hi anil,
go for moderate profits . this way your in&estment will e safe.
when things are TOO 7OO< with &ery high returns, there will always e a catch.
capt a8it &adakayil
..
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44.
AshishLMDCNs Blog 'eptemer $K, $;4$ 4$R46 (.
,aptain (8it,
'uper work and an eye opener for the present generation economics students.
2eep the good work going .
(shish
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4$.
Capt. Ajit Vadaayil 'eptemer $K, $;4$ $R$# (.
hi 8or,
if ste&e 8os found india to e poor 99 he is right.
his white christian in&ader cousins stole the wealth of india, for $:; years efore he came
, india was the richest country on this planet.
his mind and soul healing in india was aorted99as he got pasted for his selfishness.
that is why he claimed credit for all the in&entions his employees did M which ill gates
did NOT do N.
ste&e 8os was a 2+N7 '+YE< ('')OEE like the @uintessential yank edison.
punch into google search E<+'ON9 L(<(2(Q+E.
capt a8it &adakayil
..
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