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Bound to Past 09-08-2011

Bound to Past 09-08-2011

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Published by rmullis

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Published by: rmullis on Sep 14, 2011
Copyright:Attribution Non-commercial


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Copyright September 8
, 2011
Copyright September 8
, 2011
recently interviewed and asked how is it possible that my reports haveexceeded the 400,000 circulation level more than half that of the New York Timesaccording to the independent forms that audit the web? The journalist interviewingme had spoken to many readers in the industry and concluded I write about thingsnobody else seems to do. The questions caused me to think about what was takingplace. It is true that the markets are being driven alternatively swayed by the laws of supply and demand, and by the clamors of political faction. The future expectations are much lessshaped by hope than by fear while the firm edifice of Western civilization, once raised and preserved bythe wisdom of ages, is crumbling as the image of a free constitution preserved with decent reverence,has devolved onto the arbitrary executive powers of government. Common sense has just vanished.After much reflection on this subject, I concluded that the reason for perhaps obtaining one of thelargest readerships in the financial world stems from the fact that this subject matter is
even taughtin university. In fact, when the
Floating Exchange Rate System
was born in 1971, it was a temporarytrade negotiating point. There was no grand scale economic summit with a whole bunch of peoplegathering around and pontificating on the structure of the world monetary system as was the case at
Bretton Woods
in 1944 pictured above. Interviewing traders at top hedge funds the journalist realizedthat what I was writing about was important and many expressed they hoped I would continue to do soas a public service for the education was vital. This is a sad epitaph on formal education.
3Of all the people I have been compared to, the one whom Iwould agree I share a similar background is that of DavidRicardo (1772-1823) for he was a trader who drew upon hisexperience to construct what he saw as the
Comparative Advantage of Nations
. I too am drawing upon what I haveobserved as a trader and my work around the world amongnations. It is ironic that at the time of Ricardo,
 was not yet a subject taught in any school making its firstappearance in 1902 at Cambridge University. Here I amnearly 200 years later confronted by the similar problem thatthere is
course yet taught by any university that dealswith the modern economy under a
Floating Exchange RateSystem
and how that has eradicated the entire array of standard economic theories.On top of this, we truly have a paradox in how society ignoreshistory, and the political forces in command simply approachevery crisis on an
ad hoc 
basis as if they were some medievaldoctor who starts ripping out body parts until the pain stops.
Well he is at peace now for he is with God! Nobody evenasks:
Has this ever been tried before? Did it work? 
 We are bound by old economic theories constructed during a
Fixed Exchange Rate System
that no longer exists within aworld where capital did not migrate around the globe as fast asit does today. These old theories of the past are so antiquated;we are like
bound in chains to a rock by oldtheories awaiting the next crisis when the
Moral Philosophy 
, which we have not really gotten awayfrom illuminating why Karl Marx (1818-1883) was embracedmore as a moral justification setting up this eternal battle whatpeople thought was between rich and poor yet the rich weresupplanted by government. Much of these ideas that impede economics emerge from this moralfoundation that has thoroughly deprived economics of any meaningful scientific status. This moralityconcept has set economics on the wrong path drifting away from a real science spiraling down the darkcorridors of too many minds that leads to prejudice, hatred, war, and death because of this materialisticobsession. The reason economics has been anything
a real science emerges from this
Moral Philosophy 
root where instead of 
the economy actually functions, we have setout upon a course to alter its behavior transforming it into this nebulous object based upon a concept of 

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