John Lounsbury, at GEI, calls attention to:
The Commercial Banking Firm: A Simple Model
(James Tobin, Scandinavian Journal of Economics, 1982)
Hat tip to Steve Keen.
'Thirty years ago Tobin wrote about the "money out of thin air" process for banks which counters the loanable funds theory.'
Oh .. my .. God!
Was this not all laid out, operationally, in the 1930s - published, documented ... even permanently implemented nationwide?
By "monetary mystic" Marriner Eccles and a host of other, pragmatic people?
Yet 30 and 50 years later ... James Tobin notices it ..... in 1963 and 1982!!!
Gosh, what tipped him off?
But wait, there's more!
Tobin dismisses banks as mere intermediaries who help monetarist economists "control" the "money" supply - or at least don't hinder them. He thereby gives all later economists permission to do likewise, with feigned impunity - explaining all the SNAFUS every since. Shades of Gold Plutocrats, Batman! We have batty economists still trying to wag the currency operations! There's even a Nobel prize committee at the intersection of tail and dog? What purpose do you suppose that committee serves?
Today, we have arrogant people declaring that shadow is substance, and that substance is mere shadow to be controlled by the "real" shadow. And, we're told, that's "as true now as ever." And we wonder why Wall St owns Washington DC.
Next, Steve Keen ... himself ... discovers, in 2012 ... wait for it ... "JAMES TOBIN!!!" (how droll; is that the sound of one head banging itself on the keyboard?)
We have GOT to be joking! Anticlimactic to the point of despair?
Oh .. my .. God!
Was this not all laid out, operationally, in the 1930s - published, documented ... even permanently implemented nationwide?
By "monetary mystic" Marriner Eccles and a host of other, pragmatic people?
Yet 30 and 50 years later ... James Tobin notices it ..... in 1963 and 1982!!!
Gosh, what tipped him off?
But wait, there's more!
Tobin dismisses banks as mere intermediaries who help monetarist economists "control" the "money" supply - or at least don't hinder them. He thereby gives all later economists permission to do likewise, with feigned impunity - explaining all the SNAFUS every since. Shades of Gold Plutocrats, Batman! We have batty economists still trying to wag the currency operations! There's even a Nobel prize committee at the intersection of tail and dog? What purpose do you suppose that committee serves?
Today, we have arrogant people declaring that shadow is substance, and that substance is mere shadow to be controlled by the "real" shadow. And, we're told, that's "as true now as ever." And we wonder why Wall St owns Washington DC.
Next, Steve Keen ... himself ... discovers, in 2012 ... wait for it ... "JAMES TOBIN!!!" (how droll; is that the sound of one head banging itself on the keyboard?)
We have GOT to be joking! Anticlimactic to the point of despair?
This is equivalent - quite literally - to a 2nd scientist noticing, in 1982, the Theory of Relativity (E=MC2) ... ~32 years AFTER the atomic bomb unleashed atomic "initiative" on Nagasaki ... and then having a scientist in 2012 - outcast by the orthodox - noticing, .... NOTICING .... that 2nd scientist.
Please ... God ... tell me that this is a bad dream. (And yes, I'm agnostic, and nearly completely atheist. At this point, I'm willing to gamble on the most improbable of events. Even in Las Vegas.)
Is the whole, pathetic world of orthodox economics insane? And is the whole REAL WORLD insane, for paying attention to those escaped inmates? Well, yes, and YES!
Can I get a witness? And a sanity check? I'd simply emigrate - in a heartbeat - if there were only someplace to go where people were still capable of the simple act of thinking. [Watch - someone in the comments is gonna ask me for a reference to this strange concept called "thinking."]
Don't cry for Argentina. Weep for the USA, and the Luddites, economist SHAMANS it believes in. (Plus, give the 3rd world another decade - or 8 - and they'll want to replicate Larry Summers. :( What? Just throw a clueless, high-IQ clown into this chicanery? That'll fix it! Ok, don't go there. Let's just not.)
Is the whole, pathetic world of orthodox economics insane? And is the whole REAL WORLD insane, for paying attention to those escaped inmates? Well, yes, and YES!
Can I get a witness? And a sanity check? I'd simply emigrate - in a heartbeat - if there were only someplace to go where people were still capable of the simple act of thinking. [Watch - someone in the comments is gonna ask me for a reference to this strange concept called "thinking."]
Don't cry for Argentina. Weep for the USA, and the Luddites, economist SHAMANS it believes in. (Plus, give the 3rd world another decade - or 8 - and they'll want to replicate Larry Summers. :( What? Just throw a clueless, high-IQ clown into this chicanery? That'll fix it! Ok, don't go there. Let's just not.)
