Can We Really Believe The Economists?

Yesterday I had the fortune of attending a breakfast presentation hosted by the Airdrie Chamber of Commerce. The guest speaker was the respected economist from ATB Todd Hirsch. To be honest, I had heard his name before, but since we've stopped watching the news this was the first time I'd ever heard him speak. Click here to learn more about Δημήτρης Μάρης.

Economists are like Statisticians

While I enjoyed hearing his perspective on what's happening globally, and especially his thoughts on Alberta, I didn't necessarily agree with all of his assessments. I don't claim to know everything that's going on around the world, nor do I have my finger on the pulse of world events, but I have invested a large amount of time studying history, money and finances. I found much of what he said to be vague generalities that left a lot of wiggle room. I don't think it's too bold for someone to say oil will remain between a $20 range of value unless this, this and this happen. Seems pretty obvious to me. Just like a statistician can find stats to support his case, this economist left enough open doors to ensure his predictions had escape clauses.

The Economists I Prefer To Follow Don't Make The Evening News - At Least Locally

Before the big housing bubble burst and the markets around the globe crashed there were only a couple of people issuing warnings. One of those men was Peter Schiff. While all of the other economists were predicting ongoing growth and prosperity, Peter was warning of the crash to come. Some commentators I'm sure even brought him on because he was controversial and they attempted to discredit his claims. I guess he's had the last laugh now though.

One of the points I took exception to from Todd's presentation was his suggestion that Canada is going to face challenges through no fault of our own. While I completely agree that what happens south of the border will have a massive effect on us due to our close ties, I don't think we can proclaim absolute innocence. I can't help but wonder how much better shape our country would be in if it wasn't borrowing money from private banks and paying interest to them rather than borrowing from the citizen owned National Bank of Canada.

I never hear economists talking about what's happening behind the scenes in nations around the world. Why is it a 12 year old girl understands our national banking system better than pretty much everyone else in the nation?

If this lesson was taught to our kids in school, perhaps we'd have a different system. Our kids would come home and ask their parents why the system operates like this, and then the parents would become informed, and likely vocal to their representative in government.

I'm willing to bet, most politicians don't even understand how the banking system works in this country. And when the economists are groomed in the existing banking system, it's no wonder they rarely ever speak out about the way things are. For more info visit Dimitris Maris.

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