“It’s important to rescue the frog.” – Al Gore Jr., Nobel Prize Laureate.
The Great Conmen of Our Time
Uncertainties often evoke discomfort. People willingly invest in predictions that provide reassurance, especially when pronounced by those with unwavering confidence. The accuracy of these forecasts often matters less than the authority with which they are delivered.
Imagine a reality where bridge engineers had the same rate of error as weather forecasters, or where carpenters made as many mistakes as stockbrokers. Bridges would collapse and roofs would cave in as unpredictably as dark clouds gather or trading markets fluctuate.
In today’s world, central bankers stand as the primary purveyors of deception. Consider Federal Reserve Chairman Ben Bernanke, who prints $85 billion monthly to stabilize U.S. Treasury debt and the mortgage market.
Bernanke argues that this monetary intervention is for the public good, claiming that the economy suffers from a lack of demand. His theory suggests that making credit available will stimulate demand, invigorate the economy, and reduce unemployment. However, this notion is fundamentally flawed—believing that spending can lead to prosperity is simply misguided.
Leading economists may support this perspective, creating an illusion that Bernanke knows what he’s doing due to his conviction. Yet, upon closer examination, it becomes clear that he is merely guessing where the wind will blow next, oblivious to the potential ramifications of his choices.
History will inevitably deliver a sobering judgment on his actions, much like it has for prior charlatans…
The Prophecy of the Apocalypse
In 1696, William Whiston published a book titled “A New Theory of the Earth from its Original to the Consummation of all Things,” claiming the global flood of Noah was caused by a comet.
Whiston held his ideas in high esteem, and so did the populace of London. It may have been his fervent belief or perhaps a deep-seated fear of comets that blinded them to the fact that he was a fraud of the highest order.
Had he lived today, Whiston might have found a niche on Wall Street, utilizing his talents to do the work of God—separating the unsuspecting from their money. Perhaps he could have even won a Nobel Prize for an intricate pricing model that only works until it doesn’t, leading to a hedge fund collapse.
However, during Whiston’s era, there was little demand for sophisticated pricing models; instead, apocalyptic prophecies captured the public’s imagination. By 1736, Whiston had proclaimed that a comet would destroy the world on October 13 of that year.
Jonathan Swift documented Whiston’s words in “A True and Faithful Narrative of What Passed in London on a Rumour of the Day of Judgment”:
“Friends and fellow-citizens, all speculative science is at an end: the period of all things is at hand; on Friday next this world shall be no more… Prepare your wives, your families, and friends, for the universal change.”
The Archbishop of Canterbury, William Wake, had to publicly dismiss this prediction to quell the rising panic amongst the people. However, this action had minimal effect; crowds gathered in Islington and Hampstead, anticipating the imminent destruction of London, which they believed marked the “beginning of the end.”
The catastrophe never came.
Welcome to Life After the End of the World
Had Whiston known of the Mayan prophecy and the 5,125-year Long Count calendar, he might have recognized that the end of the world is ever-present.
Clearly, if you’re still reading, the Mayans were mistaken as well. Yet the concept of an impending end recurs; life after each apocalypse continues. Here’s the takeaway…
“In the long run, we are all dead,” asserted 20th-century economist John Maynard Keynes. This assertion was the cornerstone of his argument for why governments should borrow from the future to foster current economic growth. Politicians, eager for strategies that allow them to spend taxpayer money, have enthusiastically embraced this theory, leading to nearly 80 years of borrowing and spending promises aimed at achieving prosperity.
However, contrary to Keynes’s claim, it appears we are not all dead in the long run. Instead, we are facing the outcomes of myopic economic policies. The era where the dollar held unassailable value has ended, and we are now witnessing the facade of wealth, constructed over generations of fiscal irresponsibility, unravel before our eyes.
The Mayan civilization met its demise around 900 AD, marking the start of its irreversible decline. Yet, life did persist—some Mayans continued to exist after their world transformed, only to be further upended by the arrival of the Spanish Conquistadors.
Humans are tenacious. Many Mayans survived despite the end of their world. Presently, about 800,000 Mayans inhabit Mexico’s Yucatan Peninsula. However, today’s Mayans, much like contemporary Americans, depend more on government than on self-reliance.
As Mayan priest and farmer Petronilo Acevedo Pena stated, “When people planted their corn fields 50 years ago, everybody from all the towns around would pray for good harvests. But now, with government aid for seeds and fertilizer… people go to the government to seek help instead.”
And so, we find ourselves in a world that persists after the supposed end.
Sincerely,
MN Gordon
for Economic Prism
Return from Welcome to Life After the End of the World to Economic Prism