An Ex-MBA Student Reveals
the Secrets of Business Academia
Dear Economists of the World,
Back in the late 1970s I was an Economics/Finance major at a prestigious MBA program that was closely affiliated with the University of Chicago. Many of the visiting professors came from UChicago, just as many at my university took up positions there. No matter what subjects these professors taught, they all shared the same enthusiasm for the same basic economic models and financial theories.
The UChicago at the time was the ivory tower of Milton Friedman, considered by many as the “Father of Monetarism”. Because of this intimate relationship with UChicago, Friedman’s theories received a lot of attention at the UoR, many of which have proven to be absolutely true. Clearly, Uncle Milt, as we called him, possessed a towering intelligence and was unusually clear thinking … especially for an economist.
Uncle Milt also espoused many other good ideas including his sincere opposition to the existence of the Federal Reserve. However, like the vast majority of economists he was uncharacteristically blind in one particular regard. His Wikipedia page sums up that blind spot as follows:
His political philosophy extolled the virtues of a free market economic system with minimal intervention.
Given his deep knowledge base, broad experience set and extraordinary expertise in the realm of economics, is it at all possible that Uncle Milt was unaware of the Hidden Hand which operates throughout the entire Global Economic & Financial System — 24/7? Has there ever really been an authentic example of ‘free market’ capitalism anywhere on Earth?
The various market exchanges in 2015 (especially the NYSE) clearly demonstrate that each of the major markets is now transparently manipulated by the biggest economic heavyweights and financial powers on the planet. When Morgan Stanley wants to artificially depress the price of gold, they simply pull the right levers to do so. When Goldman Sachs wants to crash a company’s stock price, they know exactly what buttons to press.
The truth of the matter is that all of the markets — equity, bond, currency, commodity, derivative, real estate, insurance, carbon, etc. — are fastidiously controlled from behind the curtain. Each market has there own Wizard of Oz working their magic daily with smoke and mirrors, as well as an evening dog and pony show on TV.
The only way that this charade has persisted over so many decades is through the loyal and incessant facilitation of the economists of the world. They willingly publish the books, write the research papers and inform the mainstream media (MSM) with such a ‘compelling’ narrative so as to legitimize the whole fraudulent scheme. This has created a long-term, incestuous relationship between the corporate sector and the academic arena. This ongoing collusion has ultimately set up a quite precarious predicament which is rapidly heading toward a catastrophic global collapse.
It’s clear that most of the economists really don’t get it. Clearly they have been, and are, a part of the problem. That problem could not be more serious at this late date of development. One wonders if they would continue to support the Wall Street behemoths with so many false economic models and fake financial theories if they knew where all this is leading to?
The true state of the US economy is quite abysmal. The fundamentals have been grossly misrepresented for many years, especially since the stock market crash of 2008. All the accurate technical data reflects a monetary system on nonstop life support. The continual justification of the $18 trillion plus national debt by professional economists is shocking by any standard. So is the academic cheerleading for highly wasteful and exorbitantly expensive programs like Obamacare, especially when they’re launched right in the middle of an unrelenting jobless ‘recovery’ (read serious recession) and inflationary period.
The entire MSM, of course, knows exactly which economist to approach, and who to avoid. Unfortunately, the typical American is being sequestered from seeing or hearing any truth about the real state of affairs from the very few mainstream economists who are willing to speak the truth. Mr. or Ms. Economist, we sincerely hope you now understand that revealing the actual facts surrounding the state of the American economy and finances has never been so important.
Just how critical have things gotten?
What follows is just one explanation of why the inevitable economic and financial breakdown can no longer be postponed … unless there is a major and unconditional transformation of the entire Global Economic & Financial System (GE&FS).
Back to my highly instructive experience at the UoR MBA program. I completed only half of the curriculum requirements necessary to attain an MBA degree. Why did I become so disillusioned even after borrowing so much student loan money to attend? As follows:
These were the correct ANSWERS to virtually any question, asked by any professor, in practically any course, in the MBA program.
(1) Maximize shareholders’ profits.
(2) Optimize stockholders’ dividend income and investment appreciation.
(3) Increase stakeholders’ wealth.
For the uninitiated, these answers reflect the overwhelming influence that profits have over everything else throughout much of Corporate America. The MBAs of the nation have mostly been trained to worship these three sacrosanct and very similar corporate objectives. The goal of every publicly-traded corporation is to make the shareholders as much money as possible … even at the expense of the environment and/or the communities in which they do business.
The professional class of economists and financial experts pays homage to this prescription for keeping Corporate America forever profitable and growing. Such a misguided tack, however, has taken a great toll on the spirit of those who have been victimized repeatedly by the corporate machine.
That’s it … end of story.
Except that the entire body politic has been likewise infected with this extremely inferior and dangerous philosophy. Any political economy which promotes fake ‘free markets’ which are then used to exploit the middle class, as well as those on the lower end of the socio-economic scale, is doomed to fail. The longer this multi-decade scheme is permitted to steal from the unaware and fleece the pensioners, the bigger the bust when it all finally goes belly-up.
Which brings us to September of 2015.
Truly, the modern incarnation of the GE&FS should have collapsed in August of 1987 when the “the Dow Jones Industrial Average (DJIA) dropped by 508 points to 1738.74” representing a 22.61% decrease on that Black Monday. That was almost 30 years ago, and yet they have been successful at artificially propping up the markets ever since.
It was only the tap-dancing and dissembling by so many economists around the globe that they have been able to keep the ruse going for that long. Were it not for the ever-present gaggle of bullish economists, who have not the slightest idea of what they’re talking about, this dire situation would have never devolved into the current world-wide emergency that it truly is.
By their incessant exuberance for ‘free market’ predatory capitalism these economists empowered politicians and government officials, corporate CEO and presidents everywhere to continue their plundering and pillaging of the planet. They knew all the while that the markets were only free for those very few at the top who actually controlled them by covert means from the very beginning. Insider trading, you see, is and has always been endemic throughout the GE&FS.
If you’re an economist and reading this open letter, you may want to read the following exposé on the upcoming collapse. Just like the Y2K global disaster was nicely averted, perhaps this one can also be alleviated to a great degree. Otherwise, there will be plenty of economic pain and financial suffering to go around planet Earth several times.
P.S. It was the financial engineers and economic advisors of the past few decades who built the current fatally flawed financial architecture on top of a defective fiscal foundation from the previous era. These folks were educated and trained by the finance and economic professors at America’s premier universities. Maybe a Y2K-like worldwide initiative can be undertaken by those same universities in collaboration with economists and financial advisors who know the seriousness of this predicament.
Toward that end, we would highly recommend that any takers contact Ravi Batra, professor at Southern Methodist University and author of THE CRASH OF THE MILLENNIUM. Ravi had their number years ago, except that he, too, has been surprised by their capacity to keep the global casino going for so long. Very few international crime syndicates have seen their rackets avoid prosecution like the Federal Reserve Bank … and Wall Street.
An Ex-MBA Student
P.S. For those economists who would like to enrich their knowledge base with some other major factors that contribute to the cycle of financial crashes and economic collapse, here are a few essays and articles on the Shemitah phenomenon.