Ben Bernanke and his predictions

Why are we still listening to these clowns in Washington? Despite their academic pedigree, accolades, and experience, they continue to be consistently wrong.

Here's the problem. If one assumes the earth is flat (due to anecdotal evidence suggesting said false assumption), then all subsequent conclusions will be equally false.

The achilles heel of mainstream economists: they believe the solution to a debt crisis is creation of more debt--that somehow deficit spending is stimulative. It is clearly a false premise--yet, our government officials insist we should accelerate our spending. It has never worked--and it will never work, as huge debts cap economic growth. Yet, here we are, contemplating multi-trillion dollar deficits.

Government spending does not stimulate the economy. It is a reallocation of capital away from the private sector, through taxation. It diverts money away from worthwhile investments toward unwise political choices which the private sector would not choose. According to James Turk,

...the private sector would be investing much of that money for the benefit of future growth and productivity. In contrast, although the government may call it ‘investing in the future’, it is simply spending money on politically motivated objectives, focused on consumption rather than investment.

Adding to government payrolls does not create enterprise value. Two Google founders created billions of dollars of market capitalization, as well as trillions in productivity growth. Two government employees merely occupy two cubicles, rather inefficiently.