I am an amateur economist. But, one doesn't need years of schooling to be a better "economist" than Ben Bernanke. One merely needs to take the blinders off and release common sense. A broad background in law, economics and history helps, but it is not absolutely necessary. Economics is the study of human nature as it applies to money. So, it is precisely those who are narrowly educated, like some professional economists who don't study enough history, take an intensely academic viewpoint on things, and who don't understand fundamental human nature, who get things wrong. A narrowness of outlook and training may be blinding people like Ben Bernanke from reality, but, if they are operating knowingly and intentionally, as some claim, the situation is even more frightening.

How is it possible for a writer to make this statement and then go on to discuss the Weimar Inflation with absolutely no reference to the role played by the Treaty of Versailles war reparations?

http://en.wikipedia.org/wiki/World_W...

That's a bit like discussing the U.S. war with Japan without mentioning Pearl Harbour.

Personally, I don't think this crisis is like anything that's gone before, thus all historical comparisons fall short. The closest would probably be Japan, but that was confined to a single nation. The present situation is global and affects every nation on Earth, so where's the historical comparison for that?

It's not just generals who are fighting the last war it seems. Now economists, central bankers, and even internet bloggers have joined the fray.

ebear