What Obama Does Not Know - Part 3 of 3

Richard Mayburys books and newsletter are endorsed by Congressmen Ron Paul and by the late Harry Browne. This speech was given by Richard Maybury at the Wealth Protection Conference on May 2, 2009. In the speech, Maybury explains three things that the government and mainstream press seem not to understand. These are:

1) The economy is not a machine, it's an ecology made of unimaginably complex biological organisms, meaning people.

2) Models. There is no single economic model, like there is in Newtonian physics. Obama probably does not realize his advisors are giving him conflicting advice because they have different models.

3) Velocity. The speed at which money changes hands is dependent on emotions.

Check out the Daily Bells interview with Richard Maybury at http://www.earlywarningreport.com/interviews.html

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[oldspammer]

Because this quadrillion dollars did not exist, the credit for it was created on the fly by the traders at the financial institutions involved. This is how all of the credit was sucked out of the financial system. The bailout money of $780 billion somehow got translated into several trillion dollars to ease credit markets. These trillions exceeded the value of all of the defaulted mortgages, yet the small borrowers were blamed by mainstream media for having caused the world economic collapse.

[oldspammer]

1930s laws had previously prevented unbridled gambling made possible by such financial instruments. Goldman Sachs made money on the market's way up & down. Eventually over 1 quadrillion dollars were won and lost in this scheme. This is more than several times the entire economy of the planet. Insiders from Goldman bet against their own clients & won. GW Bush administration run by ex-Goldman people refused to even monitor the transactions for fraud & wrong doing--knew & did nothing.

[oldspammer]

By monitoring the media, the internet behavior each person, the credit card purchases made at stores, the effects of stock market liquidity, etc, an Orwellian society could fashion a computer model to predict general trends by imputed demographic modeling techniques. Sony Pictures produced documentary film "Inside Job" about the 2008 economic credit crunch narrated by Matt Damon. Academy award? Several 1930s laws were struck down by Bill Clinton that enabled credit default swaps.

[oldspammer]

The Prisoner was a BBC TV show where citizen number 6 was the protagonist played by Patrick McGoohan (who died in 2009). The behavior of each citizen living in the prison village was modeled so accurately by monitoring their activities with CCTV. When the computer running the models was asked to estimate the probabilities that it was wrong, the computer refused to answer the question. If a very accurate computer model was fashioned for human behavior, it would be able to predict economic things.

[RunLiberty]

I am reading all your books. Well done.

[loai050]

Well said, a few good simple solid lessons -thanks.

[ValleyoftheSun316]

Thanks for the re-do. Great improvement. Can't tell you how much I appreciate your clear and concise presentation of economic issues.

[Packman850]

Good video.