After watching a great video with Hugh Hendry posted on Zero Hedge earlier today, I decided to search the archives of past-dated interviews with Mr. Hendry. Why? Because the establishment has such a one-sided agenda of hiding the truth from the public that their modus operandi is always the same when confronted with the truth in present day. The establishment which includes Finance Ministers, Treasury Secretaries, and yes, Nobel Prize winning economists, always attempts to ridicule anyone that exposes their fraudulent analysis and expresses dissension to their establishment views. In retrospect, when we listen to their past arguments, we can always expose their views as propaganda and their ridicule of opposition views as an attempt to maintain their veneer of lies and deceit.
For example, consider some of Ben Bernanke’s famous predictions.
June 20th, 2007 — “[The Subprime Crisis] will not affect the economy overall.’‘ – US Federal Reserve Chairman Ben Bernanke
June 9th, 2008 — “Despite a recent spike in the nation’s unemployment rate, the danger that the economy has fallen into a “substantial downturn” appears to have waned.” – US Federal Reserve Chairman Ben Bernanke
Consider establishment Princeton University professor and Nobel Prize winning economist Paul Krugman’s claims from September 2, 2009:
“There was nothing in the prevailing [economic] models suggesting the possibility of the kind of collapse that happened last year.”
Now consider this exchange between Eclectica Asset Management CEO Hugh Hendry and Columbia University professor and Nobel Prize winning economist Joseph Stiglitz below that occurred on February 9, 2010.
Mr. Stiglitz unbelievably denies the fact that citizens are bailing out governments and banks even though governments and banks are tapping and draining the wealth of citizens through their bailout and austerity plans and clever new tax schemes. Stiglitz claims that “a bailout is what happened, uh, for Citibank, with the financial institutions, where, uh, they couldn’t, uh, they owed more than their assets.” He goes on to make the argument that the US can never accrue a debt burden too great to pay and will never have to be bailed out because they have a printing press and can perpetually devalue the dollar and print as many dollars as need be to pay the interest on their debt (Translation: American citizens will be willingly placed into infinite debt by bankers and the government)— an argument that either (1) reveals Stiglitz’s failure to see the fraudulent nature of the monetary system or (2) exposes him as a puppet of the bankers. If the US government was a real person named Uncle Sam, everyone would call Uncle Sam bankrupt and Uncle Sam would be unable to obtain a loan from any bank in the world. If the Greek government was a real person named Alexander Markopolous, everyone would call that person bankrupt. But to Stiglitz, governments never have to be bailed out, because in theory, governments can print as much money as they want out of thin air, despite the treacherous implications upon their citizens of doing so. He says, “there’s no problem with Greece or Spain meeting their interest payments.”
Hendry states that Stiglitz is utterly wrong in his assessments and interrupts Stiglitz by hilariously responding, “Hello. Can I tell you about the real world?” Banking shills like Joseph Stiglitz always argue that the problems of the global economic and monetary system are not with a fundamentally flawed system, but that the problems are merely just one of confidence. Sound familiar? (remember former US Treasury Secretary Hank Paulson’s similarly structured arguments.) Stiglitz argues that everything that is wrong with the monetary system will go away if only people would get on board the propaganda machine and just believe that the system is okay.
With the benefit of nearly five additional months since that debate, the debate between Stiglitz and Hendry reveals Stiglitz as a propaganda tool of governments and bankers and Hendry as the champion of reality. Hendry exposes the very reasons I have repeatedly stated the most education, especially a business education, at the world’s most prominent institutions, is utterly worthless. Why pay hundreds of thousands of dollars to attend re-education classes?
In my Wealth Secrets course, I state, “If you were to study the history of academia, you would realize that elite bankers, and in particular, the Rockefellers, provided the funding for much of the institutional educational boards, from the General Educational Board in America as well as the International Education Board. As such, they ensured that employees of the international global banking cartel occupied the boards of nearly every major institution of learning in the world from the early 1900’s onward, and directly influenced, as well as decided, what economic and monetary concepts would be taught to young adults worldwide…For this reason, obtaining an education in business or economics from Harvard or Princeton, outside of the connections you make, will hinder your ability to build wealth far more than it can possibly ever contribute to it.”
According to a recent eHealth survey conducted in the US, 73% of students believe that they’ll have a career-related job within a reasonable amount of time after graduation, though only 41 percent of recent graduates report having actually found a career-related job within three years of graduation. According to CollegeGrad.com, due to the lack of available jobs in the US, 80 percent of the graduating class of college kids moved back home with their parents after receiving their diploma in 2009, up from 77 percent in 2008, 73 percent in 2007, and 67 percent in 2006. According to the US Bureau of Labor Statistics, in 2010, 2.4 million graduates along with 15 million unemployed (not even considering the millions more that are underemployed) will compete for 2.7 million available positions. So on average, 6.4 Americans will compete for every available job without the conditions that that particular job may even be the desired job of the applicant. In Spain, as is the case in many other countries worldwide, the employment conditions are even worse than those that exist inside the US.
Nearly everything I learned at the University of Pennsylvania was utterly worthless to what I do today because my education actually prevented me, at the time, from truly understanding how financial and monetary markets really work. Thus, I would grade my educational experience as less than zero regarding my ability to understand, as Hendry so eloquently put it, “the real world”. Actually having zero benefit would have been better, but in retrospect, my education hindered my understanding of how financial and monetary markets truly work. My exposure to countless discussions with Wharton students about finance while in school and with Wharton and Harvard business graduates in the many years since I’ve graduated confirms my belief that top institutions of learning reinforce propaganda, and not reality, in their business curricula.
In a July, 2006 interview, Hendry flippantly remarked, “No one wants to work with me. I’m a trouble-maker. I’m a bit of a circus freak.” Though Hendry was likely being self-deprecating in that comment, there is an underlying current of truth in his words. The establishment views anyone that tells the truth and exposes their lies and faulty arguments as a trouble-maker and attempts to discredit and ostracize that person. If you are of the age where you are about to enter university, I would highly recommend reconsidering that decision, particularly if you are about to pursue a business degree.
Since college students are already likely to end up living back at home with their parents after they graduate as the job horizon will appear no better in four years than it is today (unless you believe the drivel of government officials and economists), why not spend that time immersed in self-education of how the financial and monetary systems really work? In the process, students will save their parents tens of thousands, or even hundreds of thousands of dollars, in tuition and save themselves the fate of being a sheep led to the slaughter by banking shills like Joseph Stiglitz, Paul Krugman and Jeffrey Sachs. Furthermore, students will be much better prepared to face the ongoing global economic crisis from not only a financial perspective but also from an educational perspective.
So here’s my advice, prospective students. Go talk to people with similar sensibilities to Hendry. Run to them! I assure you that spending two hours with someone like Hendry will enlighten you a hundred times more about how financial and currency markets really operate versus four years at Harvard, Columbia or Princeton. And as Mr. Hendry so astutely noted in a more recent debate with Columbia University economist Jeffrey Sachs in which he told Mr. Sachs, “I would recommend you panic”, if Sachs’s flawed analysis turns out to be wrong, those that followed the advice of economists like Sachs will face financial ruin while it is very unlikely that Sachs will lose his tenure at Columbia for being wrong.