Beware: The Economists Are Coming Out
With the cryptocurrency market, we have the all unknowing group of economists start to show up in both the financial and crypto media to talk about what is going on.
In this video I discuss how we are dealing with a group of people who do not really deal in reality. For this reason, listening to them is worthless. They live in the theoretical world which was outdated decades ago.. Cryptocurrency doesnt fit into their models.
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that is true, not everyone can talk about cryptocurrencies, only authorized voices should be heard. So let's not be part of words which are not the reality of what happens
Everyone can talk about cryptocurrencies, but the bullshit of the scammers and spammers should not be heard. Nowadays many cryptocurrency related scams are going on, and some people are falling for them. And this is bad for the reputation of cryptocurrency. But as a part of freedom of speech, everyone have the right to express their views and opinions, even if their views and opinions are outdated. The internet is open and free, and it should stay this way. No one can take away the right from no one to speak. People have to decide who and what they listen to, what they believe in.
“ cryptocurrencies, only authorized voices should be heard“
Who decides who’s “authorized” ?
Generally, that's true. Recalling what happened in the 2008 housing market crash, only about 10 or 12 among 15,000 professional economists in the US have seen the crisis coming (Tom Woods, Meltdown, 2009). As for cryptocurrency, I suspect that even these 10 or 12 economists still do not understand this tokenization thing. However, in my more or less 11 months of stay in the crypto space, I stumbled so far with two students of Austrian economists who talk about crypto. One appears to be a bitcoin maxi and the other seems to be open to other alternative coins.
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I find those who do have a few things going for them. To start, they managed money or worked for outfits that did that. Also, they do have some grasp of the shadow money (banking) system, something most economist discount.
They dismiss reserves, for the most part, in the equation, knowing they do little for economic output. Collateralization and cash flow is more important.
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I never encounter shadow banking in my previous reading that's why I am really clueless about the Eurodollar market. Reserves too, I find it a controversial topic. At first, it was unthinkable for me for a bank to operate without reserves, but when I think of cryptocurrency we are doing here exactly the same thing. As for collateralization, it is interesting that I find confirmation even from the pens of the experts themselves in international finance an alarming admission about the existence of a significant percentage of questionable assets. As for cash flow, yes it is king.
wow GREAT talk dude am I ever glad I stumbled on this video. In Canada we're needing a new party leader who actually embraces crypto and I don't know much about him so I was about to put him in the exact spotlight to see what makes him think crypto is good. It's great he likes it but why right? Beware of the economists lol it's what I've been thinking as well mostly because of their echo chamber during a bear market. When things go good for us they will still point at the same thing and say "it can happen again just wait for it" lol. IDIOTS
Economists live in an echo chamber permanently. They have their different schools yet they still talk back and forth to teach other. They do not go outside their realm and rarely take market feedback. Operating in the world of theory allows them to live by what should happen as opposed to what does.
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Comming from a background in economics myself I couldnt agree more with you. I don't know how much time I spent going through and using worthless models that are obviously wrong and do not depict reality. The reality is that there are very few people in this world that actually know what they are talking about when discussing this "science". The economic field of studies need to reinvent itself to be again useful as a tool in the world.
Ironic that once you understand what they are presenting, much of it collapses under scrutiny. Not that there arent a lot of worthy academic papers which analyze what takes place. however, we have to remember they are academic, meant to learn from, not implement as policy.
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A broken clock is right twice a day. So we obviously know that they tend to be wrong most of the time. It's just an echo chamber.
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Summary:
In this video, Task shares his perspective on economists and their views on various economic theories and issues. He discusses how economists, especially those working at institutions like the Fed, tend to stick to outdated theories and fail to grasp the practical realities of the economy. He criticizes the lack of understanding among economists regarding cryptocurrencies, asserting that their traditional models cannot accommodate the complexities of the digital currency world. Task emphasizes the importance of practical experience in financial matters over theoretical knowledge.
Detailed Article:
Task starts the video by highlighting his background in economics and questioning the credibility of economists. He criticizes the field, stating that economists cannot agree on most things and often get their predictions wrong. He mentions the three primary schools of economics - Keynesian, Austrian, and Chicago - and argues that their ideologies are limited and fail to adapt to the evolving economic landscape.
Task expresses his frustration with economists at the Fed who continue to rely on outdated theories like the Phillips curve, which he deems ineffective. He points out the disconnect between theoretical economic models and real-world economic dynamics, particularly in the context of cryptocurrency.
The speaker believes that most economists, especially those at prestigious institutions like MIT or Harvard, are detached from practical financial decision-making, leading to flawed analyses and predictions. He contrasts these academics with professionals who actively manage money and have a better understanding of capital flow and the financial system due to their real-world experience.
Task highlights the inadequacy of economists in comprehending cryptocurrencies, citing their reliance on obsolete economic theories that do not factor in the innovative nature of digital assets. He cautions viewers against heeding the advice of traditional economists like Nouriel Roubini and Peter Schiff when it comes to cryptocurrency, dismissing their viewpoints as outdated and irrelevant.
The speaker concludes by asserting that economists' views on cryptocurrency are flawed and based on antiquated models that do not apply to the digital currency realm. He criticizes the propagation of fear, uncertainty, and doubt (FUD) by economists regarding cryptocurrencies, labeling it as misinformation stemming from a lack of understanding and practical experience in the industry.
In essence, Task encourages viewers to prioritize real-world experience and practical knowledge over traditional economic theories when navigating the complexities of cryptocurrency and financial markets. He emphasizes the importance of critical thinking and independent research to form informed opinions on economic matters.
Notice: This is an AI-generated summary based on a transcript of the video. The summarization of the videos in this channel was requested/approved by the channel owner.