Occasional X: How it works (CDXXVIII)

#Economics#AllYouNeedToKnow

“Fun fact, the entire GDP growth in the UK since 2019 has been driven by government, not the private sector. Similar entertaining picture in Germany. How did this happen?” (Michael Arouet)

Michael Arouet has no idea how the economy works. This is…

— AXEC (@EgmontHandtke) December 22, 2025

Occasional X: Clueless economists / Price Mechanism (IX)

#Economics#AllYouNeedToKnow

“… prices are tightly linked to credit growth …” (James Young)

The axiomatically correct macroeconomic Law of Supply and Demand ⇓ tells one how ― in the elementary case ― the avg price P moves under the condition of market clearing as a function… pic.twitter.com/BXTyA8RZhU

— AXEC (@EgmontHandtke) December 22, 2025

Occasional X: How it works (CDXXVII)

#Economics#AllYouNeedToKnow

“Logical inconsistency: your model assumes real wage = productivity via market-clearing prices, then concludes no surplus exists.” (Dohaciel Ygzgzot)

The appendix shows the relationship between real wages W/P and productivity R under the condition… pic.twitter.com/5nl4qIYM2b

— AXEC (@EgmontHandtke) December 21, 2025

Occasional X: Clueless economists / Science (CCXLVI)

There are two logical cases: (i) market-clearing, and (ii) not market-clearing. In case (i), the price is the dependent variable. The different conditions imply different causalities. Case (ii) has been analyzed elsewhere and is not relevant at this point. Here is the paper for… pic.twitter.com/Aa5B6pIuAY

— AXEC (@EgmontHandtke) December 21, 2025

Occasional X: Clueless economists / Tax (II)

#Economics#AllYouNeedToKnow

“Taxes aren’t a funding mechanism. Taxes don’t fund a currency issuing government.” (Malcolm Reavell)

The simplified national accounts below ⇓ show two economies, one (0) without tax, and one (1) with tax.

In (0), the workers spend their entire…

— AXEC (@EgmontHandtke) December 20, 2025

Occasional X: Clueless economists / Science (CCXLV)

#Economics#AllYouNeedToKnow

Economics has defined itself as a social science and accordingly has been based on subjective/behavioral axioms. This has been the fatal methodological error/mistake/blunder.

For details of the big picture, see
Cross-references, Not a Science of… pic.twitter.com/XI8UJ9Px1a

— AXEC (@EgmontHandtke) December 20, 2025

Occasional X: MMT ― trolling for the Oligarchy (VI)

#Economics#AllYouNeedToKnow

“It is impossible for the whole private sector to be in surplus unless there is a government deficit to match it. This isn’t MMT, it’s just how the money system works.” (Malcolm Reavell)

“It’s fact, not a matter of opinion.” (?whispers?)

Exactly…

— AXEC (@EgmontHandtke) December 20, 2025

Occasional X: MMT ― trolling for the Oligarchy (V)

#Economics#AllYouNeedToKnow

“The public debt is the creation and addition of new assets from the government sector to the non government sector. Are the private sector recipients of the new money just going to politely decline it?” (Douglas)

Exactly here, the MMT swindle comes…

— AXEC (@EgmontHandtke) December 20, 2025

Occasional X: Clueless economists / Science (CCXLIV)

“Every line is a tautology following from definitions.” Wrong. Every line follows consistently from the axioms. You do not know the difference between axioms and definitions. Formal consistency is one-half of science. Aristotle understood this; Marx did not. After all, he was an…

— AXEC (@EgmontHandtke) December 20, 2025

In section 4.4, it is formally demonstrated that from real surplus follows the total surplus value, which is equal to monetary profit, which stems from an expenditure ratio >1, which is the ultimate cause of real and nominal surplus.

“… your baseline model is a pure consumption…

— AXEC (@EgmontHandtke) December 20, 2025

Occasional X: Clueless economists / Money (LXXVII)

#Economics#AllYouNeedToKnow

“Monetary theory is less abstract than most economic theory, it cannot avoid a relation to reality .... It belongs to monetary history in a way that economic theory does not always belong to economic history.” (John Hicks)

John Hicks, too, got…

— AXEC (@EgmontHandtke) December 19, 2025

Occasional X: MMT ― trolling for the Oligarchy (IV)

#Economics#AllYouNeedToKnow

“Like it or not, MMT is here to stay. As it's not a scholarly field and makes no claims to explain anything about the economy, it's not threatened by economics.” (Per Bylund)

MMT is a stillbirth. Right policy depends on true theory. ⇓ MMT is… pic.twitter.com/YKsBXEljrJ

— AXEC (@EgmontHandtke) December 19, 2025

Occasional X: How it works (CDXXVI)

#Economics#AllYouNeedToKnow

“Why are we seeing instead, a rapidly growing economy, inflation coming in way lower than expected and real wages quickly rising? How is that even possible?” (Joe Lange)

Joe Lange has no idea how the US economy works. President Trump is just…

— AXEC (@EgmontHandtke) December 19, 2025

Occasional X: Clueless economists / Phillips Curve (XVIII)

#Economics#AllYouNeedToKnow

The axiomatically correct Phillips Curve is given below ⇓. It contains the original curve. pic.twitter.com/tPsyG0L5jv

— AXEC (@EgmontHandtke) December 19, 2025

Occasional X: Clueless economists / Money (LXXVI)

#Economics#AllYouNeedToKnow

Monetary Theory has been proto-scientific garbage since the time of the Founding Fathers. Economics is not a science but political blahblah.

For the axiomatically correct monetary theory, see
The Dark-Matter Theory of Fiat Money {78a}…

— AXEC (@EgmontHandtke) December 18, 2025

Occasional X: The futile attempt to recycle Keynesianism (XCIII)

#Economics#AllYouNeedToKnow

“Big ideas live in blogs and books, and rarely in econ journal articles. It wasn't always this way.” (Paul Novosad)

Economics still lacks the big idea, i.e., the axiomatically correct Paradigm.

For 200+ years, economics has claimed to be a science.… pic.twitter.com/zM6MbopISo

— AXEC (@EgmontHandtke) December 18, 2025

Occasional X: The futile attempt to recycle Marx (XLX)

#Economics#AllYouNeedToKnow

“Capital Vol. I asks how can profit arise if commodities exchange at their values? Marx’s answer is that exploitation happens in production, not exchange.” (Dohaciel Ygzgzot)

Marx never understood profit, and, by consequence, how the economic system…

— AXEC (@EgmontHandtke) December 18, 2025

Occasional X: How it works (CDXXV)

#Economics#AllYouNeedToKnow

“he government doesn’t have any money. Only people have money. The government only gets money by putting its hand in your pocket and taking it out.” (Milton Friedman)

Taxes as such are not theft. Of course, they can become a kind of theft, if, for… pic.twitter.com/dgC1wjMHcM

— AXEC (@EgmontHandtke) December 18, 2025

Occasional X: Clueless economists / Distribution, Inequality (XVI)

#Economics#AllYouNeedToKnow

“Unlike my friend glenweyl I have a high opinion of economic theory …” (Itai Sher)

“Unlike the nincompoops of legacy economics, I have a low opinion of economic theory …” (AXEC)

For over 200 years, economics has claimed to be a science, but it…

— AXEC (@EgmontHandtke) December 18, 2025

Occasional X: Clueless economists / Tax (I)

#Economics#AllYouNeedToKnow

“Taxation must be theft. I cannot see how, morally, anyone consents to being taxed. … Am I an anarchist?” (Reem Ibrahim)

Taxes as such are not theft. Of course, they can become a kind of theft, if, for example, the State taxes WeThePeople for… pic.twitter.com/3o15YdSd1A

— AXEC (@EgmontHandtke) December 18, 2025

Occasional X: Clueless economists / Money (LXXV)

#Economics#AllYouNeedToKnow

“Fractional reserve banking = your money isn’t really there.” (Rand Paul)

It goes without saying that neither the Senate nor Mr Rand Paul understands how the economy, or the monetary system in particular, works. However, this doesn't matter because…

— AXEC (@EgmontHandtke) December 18, 2025

Occasional X: Clueless economists / Phillips Curve (XVII)

#Economics#AllYouNeedToKnow

Paul Samuelson never understood how the economic system works. Together with Solow, he messed up the original Phillips Curve back in 1960. ⇒

NAIRU, wage-led growth, and Samuelson's Dyscalculiahttps://t.co/dlXM0eZXwc

and

Cross-references:…

— AXEC (@EgmontHandtke) December 17, 2025

Occasional X: The foul spirit of political economics (CLXXXII)

#Economics#AllYouNeedToKnow

MMT's foundational balances equation is provably false, so their whole macroeconomics is false. ⇒

The page where Stephanie Kelton gets macroeconomics wrong https://t.co/fSdHhHXvl3

For the full-spectrum refutation, see cross-references ⇒… pic.twitter.com/GoZsN0EH3c

— AXEC (@EgmontHandtke) December 17, 2025

Occasional X: Economists still can't get the sectoral balances right (IV)

#Economics#AllYouNeedToKnow

The axiomatically correct macroeconomic profit formula is as follows: Qm≡Yd+(I−Sm)+(G−T)+(X−M). Therefore, Michał Kalecki's statement

“In a sense the budget deficit [(G−T)>0] can be considered as an artificial export surplus [(X−M)>0].”

is…

— AXEC (@EgmontHandtke) December 17, 2025

Occasional X: Clueless economists / Money (LXXIV)

 

#Economics#AllYouNeedToKnow

Monetary Theory has been proto-scientific garbage since the time of the Founding Fathers. Neither the establishment, nor the representative economist, nor the average person knows how the economic system works. Therefore, strictly speaking, they…

— AXEC (@EgmontHandtke) December 17, 2025

Occasional X: Clueless economists / Equilibrium (II)

#Economics#AllYouNeedToKnow

“The Non-Existence of Equilibrium as an Optimization Solution in Monetary Production Economies.” (James Young)

In economics, there is no such thing as equilibrium/ disequilibrium. Methodologically, this concept has always been a NONENTITY.

For…

— AXEC (@EgmontHandtke) December 17, 2025

Occasional X: Paradigm Shift (XCII)

#Economics#AllYouNeedToKnow

“Representative agent (RA) models remain a foundational device in New Keynesian macroeconomics, enabling aggregation and equilibrium analysis via a single optimizing household.” (James Young)

Representative agent (RA) models are still scientifically… pic.twitter.com/Q7MtRZTXWG

— AXEC (@EgmontHandtke) December 17, 2025

Occasional X: MMT ― trolling for the Oligarchy (III)

#Economics#AllYouNeedToKnow

“The most important macro driver is faltering: Gov't Spending. Deficits add financial assets to the private sector.” (Douglas)

No. There is no such thing as the private sector. There are the business sector and the household sector. The balance of… pic.twitter.com/2pqw7Ycyeb

— AXEC (@EgmontHandtke) December 17, 2025

Occasional X: The futile attempt to recycle Marx (XLIX)

#Economics#AllYouNeedToKnow

“The philosophers have only interpreted the world, in various ways. The point, however, is to change it.” (Karl Marx, quoted by Don Watkins)

'The economists have only changed the world. The point, however, is to improve it.' (AXEC)

Marx never…

— AXEC (@EgmontHandtke) December 16, 2025

Occasional X: How it works (CDXXV)

#Economics#AllYouNeedToKnow

“Keep your eye on one thing and one thing only: how much government is spending, because that’s the true tax.” (Milton Friedman)

Pay particular attention to the interest payments, which essentially mean that WeTheOligarchy taxes WeThePeople.

The…

— AXEC (@EgmontHandtke) December 16, 2025

Occasional X: Clueless economists / Price Mechanism (VIII)

#Economics#AllYouNeedToKnow

“The natural state of any economy is DEFLATION.” (Darth Powell)

The axiomatically correct macroeconomic Law of Supply and Demand ⇓ tells one how ― in the elementary case ― the avg price P moves under the condition of market clearing as a function… pic.twitter.com/EgiXi7o2SK

— AXEC (@EgmontHandtke) December 16, 2025

Occasional X: Clueless economists / Money (LXXIII)

#Economics#AllYouNeedToKnow

Monetary Theory has been proto-scientific garbage since the time of the Founding Fathers, but some people still parrot it.

For the axiomatically correct reset, see
The Dark-Matter Theory of Fiat Money {78a}https://t.co/x4NOcsCBMS

— AXEC (@EgmontHandtke) December 16, 2025

Occasional X: How it works (CDXXIII)

#Economics#AllYouNeedToKnow

“Modern day capitalism has the government supplying billions of £ of fiat currency to the wealthy, without obligation.” (Tony Weston)

The free-market economy runs on profit. Macroeconomic profit is given by the axiomatically correct Profit Law /…

— AXEC (@EgmontHandtke) December 15, 2025

Occasional X: The futile attempt to recycle Marx (XLXIII)

#Economics#AllYouNeedToKnow

Whether Marx was a saint or an asshole is irrelevant. Whether Marx was poor or rich is irrelevant. The question is whether he was a scientist or a political agenda-pusher. In the grand scheme of things, only scientists matter.

Marx never understood…

— AXEC (@EgmontHandtke) December 15, 2025

Occasional X: Clueless economists / Profit (CXX)

#Economics#AllYouNeedToKnow

“Profit is a signal which tells us what we must do in order to serve people whom we don’t know.” (F. A. Hayek Quotes)

Hayek never understood profit and how the economic system works. That is the unassailable scientific disqualification.

The… pic.twitter.com/v1mYYfnVJ8

— AXEC (@EgmontHandtke) December 15, 2025

Occasional X: Clueless economists / Money (LXXII)

 

#Economics#AllYouNeedToKnow

“Understanding the monetary system as it exists …” (Stephanie Kelton)

The Dark-Matter Theory of Fiat Money {78a}https://t.co/x4NOcsD9Cq

— AXEC (@EgmontHandtke) December 15, 2025

Occasional X: MMT ― trolling for the Oligarchy (II)

 

#Economics#AllYouNeedToKnow

MMT promotes socialism? Economists' stupidity knows no lower bound.

For details, see
MMT, Warren Mosler, and the little helpers from Wall Street and Academiahttps://t.co/3HTR2oUC7S

— AXEC (@EgmontHandtke) December 15, 2025

For the full picture, see 'Links on MMTers push Wall Street’s agenda' 

Occasional X: The foul spirit of political economics (CLXXXI)

 

#Economics#AllYouNeedToKnow

“MMT should not be politely debated or academically indulged.” (Peter McCormack)

Peter McCormack has no idea about profit and how the economic system works. MMT is not a Marxist theory. It is bad science, like the rest of legacy economics. Academic… pic.twitter.com/kKBvhu16d6

— AXEC (@EgmontHandtke) December 14, 2025

Occasional X: The foul spirit of political economics (CLXXX)

#Economics#AllYouNeedToKnow

Ricardo NEVER understood profit and how the economic system works. When the foundational concepts of the subject matter are inconsistent, the whole analytical superstructure is scientifically worthless. The same applies to Marx.

For proof, see ⇒…

— AXEC (@EgmontHandtke) December 14, 2025

Occasional X: The foul spirit of political economics (CLXXIX)

#Economics#AllYouNeedToKnow

“Many people on the left consider MMT a way of funding public services.” (Tony Weston)

What “many people on the left” think is irrelevant. Same with “many people on the right.” Science is not about left/right, but about true/false. MMT is… pic.twitter.com/N0WvRQxOLD

— AXEC (@EgmontHandtke) December 14, 2025

Occasional X: Clueless economists / Science (CCXLIII)

#Economics#AllYouNeedToKnow

“academia has failed because of peer review.” (vittorio)

The first thing to know for an academic is: economics ― understood as science ― is about knowledge (episteme) and NOT about opinion (doxa).

“In order to tell the politicians and… pic.twitter.com/OJYMrRzucr

— AXEC (@EgmontHandtke) December 13, 2025

Occasional X: Clueless economists / Science (CCXLII)

#Economics#AllYouNeedToKnow

“Being 'heterodox' has become a sedative for academic underperformance: soothing, self-exculpatory, and ultimately empty.” (Piotr Żoch)

Heterodox economics is scientifically worthless, just like Orthodoxy. There is nothing to choose. For details,…

— AXEC (@EgmontHandtke) December 13, 2025

Related 'How Heterodoxy became the venue for science’s scum' 

Occasional X: The futile attempt to recycle MMT (CLXXX)

#Economics#AllYouNeedToKnow

“Could you give me an example of where MMT has been successfully implemented before.” (Billy Davies)

In practice, MMT has been implemented everywhere for a long time. In essence, it means persistent deficit-spending/money-creation. Economists are… pic.twitter.com/8jESbz1WHl

— AXEC (@EgmontHandtke) December 13, 2025

Occasional X: J.S. Mill was a champion of science (III)

 

#Economics#AllYouNeedToKnow

J.S. Mill was the only scientist among brain-dead economists. He understood the difference between science and politics.

Why J.S. Mill had no friendly word for the bigots and votaries of common sensehttps://t.co/tunyuW5tbZ pic.twitter.com/DfiWzuXHBi

— E.K-H (@AXECorg) December 13, 2025

Occasional X: The futile attempt to recycle Hayek (XLIX)

#Economics#AllYouNeedToKnow

Hayek never understood profit and how the economic system works. The same holds for Keynes. This is why the Hayek-Keynes discussion has always been disinfotainment for retarded economists.

The free-market economy runs on profit. Macroeconomic profit…

— AXEC (@EgmontHandtke) December 12, 2025

Occasional X: Clueless economists / Price Mechanism (VII)

#Economics#AllYouNeedToKnow

The axiomatically correct macroeconomic Law of Supply and Demand ⇓ tells one how ― in the elementary case ― the avg price P moves under the condition of market clearing as a function of avg wage rate W, inverse avg productivity R, and… pic.twitter.com/DonR9yPd9P

— AXEC (@EgmontHandtke) December 11, 2025

Occasional X: Clueless economists / Science (CCXLI)

#Economics#AllYouNeedToKnow

“Neo-liberalism, Thatcherism, Trickle-down economics or whatever you call it … is based on myths/lies as without them, the whole thing would crumble.” (David Graeber Institute)

The free-market economy runs on profit. Macroeconomic profit Qm is…

— AXEC (@EgmontHandtke) December 11, 2025

Occasional X: The foul spirit of political economics (CLXXVIII)

#Economics#FailedFakeScience

“At the Old Parkland campus in Dallas, TX. Property & Prices; Exchange & Production; Calculation & Coordination.” (Peter Boettke)

The wooden mosaic at the Old Parkland campus in Dallas reveals who is responsible for the complete failure of…

— AXEC (@EgmontHandtke) December 11, 2025

Occasional X: Clueless economists / Money (LXXI)

 

#Economics#AllYouNeedToKnow

“There is nothing underneath, as it were, holding it [money] up.” (Perry Mehrling)

Nothing underneath money is needed to hold it up.

The Dark-Matter Theory of Fiat Money {78a}https://t.co/SvOZ93oiOT

— E.K-H (@AXECorg) December 11, 2025

Occasional X: How it works (CDXXII)

#Economics#AllYouNeedToKnow

“Yeah… that’s trillions in U.S. debt that expires in 2026. … And all of it has to be refinanced at much higher interest rates than the near-zero environment it was originally issued in.” (NoLimit)

The free-market economy runs on profit.…

— AXEC (@EgmontHandtke) December 11, 2025

Occasional X: Clueless economists / Money (LXX)

#Economics#AllYouNeedToKnow

“The Federal Reserve System is one of the great communities of economists in the world.” (Steven Durlauf)

Yes, but economics is known to be failed/fake science.

Economics claims to be a science, but it still is NOT. The major approaches…

— AXEC (@EgmontHandtke) December 10, 2025

Occasional X: The futile attempt to recycle MMT (CLXXIX)

#Economics#AllYouNeedToKnow

“2/the debt are the private sector net savings.” (Patricia Pino)

No.

There is no such thing as the private sector. There are the business sector and the household sector. The balance of the household sector is saving/dissaving, and the balance of…

— AXEC (@EgmontHandtke) December 10, 2025

Occasional X: Clueless economists / Distribution, Inequality (XV)

#Economics#Distribution

“The Bayesian posterior probability that income distribution is driven by credit acceleration rather than New Keynesian mechanisms exceeds 99.999%. This level of confidence simultaneously falsifies all six structural pillars of the NK model …” (James…

— AXEC (@EgmontHandtke) December 10, 2025

Occasional X: The futile attempt to recycle behavioral economics (X)

#Economics#AllYouNeedToKnow

“A reliable way to make people believe in falsehoods is frequent repetition, because familiarity is not easily distinguished from truth.” (Daniel Kahneman)

Over the last 250+ years, we have made little progress in economics. Daniel Kahneman's quotes…

— AXEC (@EgmontHandtke) December 10, 2025

Occasional X: Economists still get saving/dissaving and loss/profit wrong (IV)

#Economics#AllYouNeedToKnow

“No one is claiming that I ≠ S.” (Shahin Ashkiani)

It is NOT the case that saving governs investment or that investment governs saving or that both are equal by definition, as Keynes said. ⇓ Both are independent, and they together determine… pic.twitter.com/Ldq0QKLyUE

— AXEC (@EgmontHandtke) December 10, 2025

Occasional X: Paradigm Shift (XCI)

#Economics#AllYouNeedToKnow

“The Lucas Critique was not about the number of parameters in econometric models, but the nature of parameters (structural vs reduced form); and his advice was not to simplify models, but to build them from assumptions on economic primitives like… pic.twitter.com/XBGSWnVU5i

— AXEC (@EgmontHandtke) December 10, 2025

Also on lucasian76 

Occasional X: The futile attempt to recycle Marx (XLXII)

#Economics#AllYouNeedToKnow

“Without Marx's theory of value there's no way to *quantitatively* link profit to unpaid labor time.” (Ian Wright)

Marx's lethal mistake has not been the Labour Theory of Value, but the Theory of Profit.

Marx never understood profit and, by…

— AXEC (@EgmontHandtke) December 10, 2025

Occasional X: The futile attempt to recycle Keynesianism (XCII)

#Economics#AllYouNeedToKnow

“He [the economist] must understand mathematics and speak in mathematics.” (J. M. Keynes)

For 200+ years, economics has claimed to be a science. But it still is not. The major approaches (Walrasianism, Keynesianism, Marxianism, Austrianism, and… pic.twitter.com/LMU2H5vE5w

— AXEC (@EgmontHandtke) December 9, 2025

Occasional X: Clueless economists / Profit (CXIX)

#Economics#AllYouNeedToKnow

“The US National Debt has now increased by $2.2 trillion since the Debt Ceiling was raised back in July. The Federal Government continues to borrow from our future to spend money like drunken sailors today.” (Charlie Bilello)

Charlie Bilello does…

— AXEC (@EgmontHandtke) December 9, 2025

Occasional X: Paradigm Shift (XC)

#Economics#AllYouNeedToKnow

“Economic questions haven’t suddenly become irrelevant and I don’t see any other field that replaces economics.” (Itai Sher)

Another field will not replace economics. However, legacy economics will be replaced by a new approach. This change is known… pic.twitter.com/gbRW4jEz61

— AXEC (@EgmontHandtke) December 9, 2025

Occasional X: The futile attempt to recycle behavioral economics (IX)

#Economics#AllYouNeedToKnow

“I don't care whether we call it economics or not, but the stable preferences point is important and also not that restrictive.” (Brian Albrecht)

Stable preferences are not the starting point of economic analysis. Economics has defined itself as a… pic.twitter.com/9jMXES63bG

— AXEC (@EgmontHandtke) December 9, 2025

Occasional X: How it works (CDXXI)

#Economics#AllYouNeedToKnow

“America just crossed a threshold from which empires do not return.” (Shanaka Anslem Perera)

No panic, this is old stuff. Wake up and read the 2020 post.

From the debt economy to the gift economy: how America is brainwashed to love budget deficits…

— AXEC (@EgmontHandtke) December 9, 2025

Occasional X: Clueless economists / Science (CCXL)

#Economics#AllYouNeedToKnow

There is no such thing as 'economic sciences'. ⇓ pic.twitter.com/ZTW2ZkCDaI

— AXEC (@EgmontHandtke) December 8, 2025

Occasional X: The foul spirit of political economics (CLXXVIII)

#Economics#AllYouNeedToKnow

Thomas Sowell's quotes are psycho-sociology, not economics. As a matter of fact, he never understood profit and how the economic system works.

Economics has defined itself as a social science and accordingly has been based on subjective/behavioral…

— AXEC (@EgmontHandtke) December 8, 2025

Occasional X: Clueless economists / Money (LXIX)

#Economics#AllYouNeedToKnow

Roger Farmer has long been known to be a failed/fake scientist. ‡ This applies also to monetary theory.

For the consistent macroeconomic Axiom Set, see the working paper
The Dark-Matter Theory of Fiat Money {78a}https://t.co/x4NOcsCBMS

‡ For…

— AXEC (@EgmontHandtke) December 8, 2025

Occasional X: The futile attempt to recycle Marx (XLXI)

#Economics#AllYouNeedToKnow

“'1. Die Arbeit ist die Quelle alles Reichtums und aller Kultur, und da nutzbringende Arbeit nur in der Gesellschaft und durch die Gesellschaft möglich ist, gehört der Ertrag der Arbeit unverkürzt, nach gleichem Rechte, allen Gesellschaftsgliedern.'…

— AXEC (@EgmontHandtke) December 8, 2025

Occasional X: Clueless economists / Profit (CXVIII)

#Economics#AllYouNeedToKnow

“You have to be wildly optimistic to believe that corporate profits as a percent of GDP can, for any sustained period, hold much above 6%.” (Warren Buffett)

Clearly, Warren Buffett does not understand profit, and therefore, how Capitalism works.…

— AXEC (@EgmontHandtke) December 7, 2025

Occasional X: The futile attempt to recycle Hayek (XLVIII)

 

#Economics#AllYouNeedToKnow

For 200+ years, economics has claimed to be a science. But it still is not. The major approaches (Walrasianism, Keynesianism, Marxianism, Austrianism, and their derivatives) are mutually contradictory & axiomatically false & materially/formally… pic.twitter.com/Gen5hVaqUx

— AXEC (@EgmontHandtke) December 7, 2025

Occasional X: Paradigm Shift (LXXXIX)

#Economics#AllYouNeedToKnow

Modern economics is, what Feynman called, a cargo cult science. Real economists are not interested in how individuals behave; only PsySocs are. Economists are interested in how economic systems behave.

Economics has defined itself as a social… pic.twitter.com/rf1ZtqYZQs

— AXEC (@EgmontHandtke) December 7, 2025

Occasional X: How it works (CDXX)

#Economics#AllYouNeedToKnow

“Something not talked about enough is how the year 1971 broke the US economy forever.” (Boring Business)

The graphic in the appendix shows the relationship between real wages and productivity under the condition of market clearing. It is based on… pic.twitter.com/ldp74tr8c4

— AXEC (@EgmontHandtke) December 7, 2025

Occasional X: The futile attempt to recycle MMT (CLXXVIII)

 

#Economics#AllYouNeedToKnow

“As an accounting identity the 'debt' is a record of government-issued financial wealth held by the non-government sector.” (?whispers?)

The MMT error/fraud lies in the word non-government sector. There is NO such thing as the “non-government… pic.twitter.com/ll10GIQjUu

— AXEC (@EgmontHandtke) December 6, 2025

Occasional X: The futile attempt to recycle Marx (XLX)

#Economics#AllYouNeedToKnow

“I'm not an economist. I'm a Marxist.” (Grace Blakeley)

Marx never understood profit and, by consequence, how the economic system works.

Economics claims to be a science, but it still is NOT. The major approaches (Walrasianism, Keynesianism,…

— AXEC (@EgmontHandtke) December 6, 2025

Occasional X: How it works (CDXIX)

#Economics#AllYouNeedToKnow

The world is now $324t in debt, … Who do we owe this much fucking money to?” (Noah’s Ark)

How do you think the economy works? Hard work, innovation, entrepreneurs, risk takers, or the Invisible Hand of free markets?

The free-market economy runs on…

— AXEC (@EgmontHandtke) December 6, 2025

Occasional X: Clueless economists / Money (LXVIII)

#Economics#AllYouNeedToKnow

“In a dynamic general equilibrium model, …” (d'Avernas et al.)

This half-sentence says all about hopeless legacy economics.

For the basics of the consistent monetary theory, see
The Dark-Matter Theory of Fiat Money {78a}https://t.co/x4NOcsD9Cq

— AXEC (@EgmontHandtke) December 6, 2025

Occasional X: The futile attempt to recycle Marx (XLIX)

#Economics#AllYouNeedToKnow

“Bro read the fucking book.” (reddington)

Marx never understood profit and, by consequence, how the economic system works.

Economics claims to be a science, but it still is NOT. The major approaches (Walrasianism, Keynesianism, Marxianism,… pic.twitter.com/mthvq4LLdA

— AXEC (@EgmontHandtke) December 5, 2025

Occasional X: The foul spirit of political economics (CLXXVII)

#Economics#FailedFakeScience

“As an undergraduate student, I left the traditional economics track for one simple reason: I wasn’t learning much about how the economy actually works in the real world.” (Jostein Hauge)

That's the first step. The decisive second step is the…

— AXEC (@EgmontHandtke) December 5, 2025

Related 'Economists: scientists or political clowns?' 

Occasional X: False communication on social media (I)

#WisdomOfLife

Learn reading. ⇓ pic.twitter.com/5yloB3zcjq

— AXEC (@EgmontHandtke) December 5, 2025

Occasional X: Clueless economists / Money (LXVII)

 

#Economics#AllYouNeedToKnow

Neither Steven Hail nor the IMF's Rodrigo Valdés “do understand monetary system mechanics.”

For details, see ⇒
The Dark-Matter Theory of Fiat Money {78a}https://t.co/x4NOcsD9Cq

— AXEC (@EgmontHandtke) December 5, 2025

Occasional X: Clueless economists / Science (CCXXXIX)

#Economics#AllYouNeedToKnow

“Keynes and Euclidean economists in a non-Euclidean world.” (Shahin Ashkiani)

The prime task of theoretical economics is axiomatisation.

For 200+ years, economics has claimed to be a science. But it still is not. The major approaches (Walrasianism,…

— AXEC (@EgmontHandtke) December 5, 2025

Occasional X: The foul spirit of political economics (CLXXVI)

#Economics#AllYouNeedToKnow

You say you are 63 years old. It's about time you studied real economics! For a start, see ⇒

The Dark-Matter Theory of Fiat Money {78a}https://t.co/x4NOcsCBMS

Listening to prominent economists ('Bernanke, Gertler, Kirzner, Boetke, no less')… pic.twitter.com/EYGWn7RRla

— AXEC (@EgmontHandtke) December 4, 2025

Occasional X: How it works (CDXVIII)

#Economics#AllYouNeedToKnow

“Even at $30 trillion, America has the wealth to pay off its debt. The real question is whether Americans are willing to be taxed more or have their government spend less.” (Tabarrok & Cowen)

Tabarrok & Cowen do not understand profit and, by…

— AXEC (@EgmontHandtke) December 4, 2025

Occasional X: How it works (CDXVII)

#Economics#AllYouNeedToKnow

“THE BANK OF JAPAN JUST BECAME THE WORLD’S LARGEST HEDGE FUND” (Shanaka Anslem Perera)

Shanaka Anslem Perera does not understand profit and, by consequence, how the monetary economy works.

The free-market economy runs on profit. Macroeconomic…

— AXEC (@EgmontHandtke) December 4, 2025

Occasional X: Clueless economists / Science (CCXXXVIII)

#Economics#AllYouNeedToKnow

“… this is the same guy who claimed to be the greatest lover in vienna, …” (Robert Murphy)

'Who was the greatest lover in Vienna?' is a disinfotainment question; it leads to nothing.

“Economics is the study of the economy, not the study of… pic.twitter.com/42tVKQgwXf

— AXEC (@EgmontHandtke) December 4, 2025

Occasional X: AI — boosting scientific competence in economics (VI)

#Economics#AllYouNeedToKnow

“'Will AI Improve Undergraduate Economics Education?” (Matthew Kahn)

Will AI figure out that economics has always been materially/formally inconsistent and help to make economics a science?

For 200+ years, economics has claimed to be science, but… pic.twitter.com/4j3IFN7TuE

— AXEC (@EgmontHandtke) December 4, 2025

Occasional X: Clueless economists / Science (CCXXXVII)

#Economics#AllYouNeedToKnow

For 200+ years, economics has claimed to be a science. But it still is not. The major approaches are mutually contradictory & axiomatically false & materially/formally inconsistent & ALL got profit wrong.

When the foundational concepts of the… pic.twitter.com/xi0gZMevuS

— AXEC (@EgmontHandtke) December 3, 2025

Related Link and 'ASSA2020 has been a success ― sorta kinda' 

Occasional X: AI — boosting scientific competence in economics (V)

#Economics#AllYouNeedToKnow#AI

“this is big... 50 AI researchers from Bytedance, Alibaba, Tencent, and other labs/universities just published a 300-page paper with surprising lessons about coding models and agents (data, pre and post-training, etc). key highlights: > small…

— AXEC (@EgmontHandtke) December 3, 2025

Occasional X: Clueless economists / Science (CCXXXVI)

#Economics#AllYouNeedToKnow

“In undergrad, I took a course called 'critical analysis of market economies'. 1st lecture, prof arrives & writes Y=C+I+G+XN on the blackboard. Then says: 'You won't see GDP equations here, because no human relations can be reduced to numbers.'”…

— AXEC (@EgmontHandtke) December 3, 2025

Occasional X: Paradigm Shift (LXXXVIII)

#Economics#AllYouNeedToKnow

“Macro without microfoundations needs to be expelled from the field.” (Sid Gundapaneni)

Actually, legacy microfoundations need to be expelled from the field.

Modern economics is, what Feynman called, a cargo cult science. Real economists are not… pic.twitter.com/PUd97myYLo

— AXEC (@EgmontHandtke) December 3, 2025

Occasional X: Clueless economists / Money (LXVI)

#Economics#AllYouNeedToKnow

“By making paper money legal tender, the government shut the door on sound money. Repealing legal tender laws is the first step back to liberty.” (Michael Milano)

The question is: How does money really work? Economists don't know. To answer this…

— AXEC (@EgmontHandtke) December 2, 2025

Occasional X: The futile attempt to recycle MMT (CLXXVII)

 

#Economics#AllYouNeedToKnow

“We want to change economics, and in changing economics, to change the world.” (Steven Hail, MMT)

Every idiot can change the world. The most important thing is to improve it. This goes beyond MMT because their understanding of economics is flawed.… pic.twitter.com/kpErKHcNAf

— AXEC (@EgmontHandtke) December 2, 2025

Occasional X: The foul spirit of political economics (CLXXV)

#Economics#FailedFakeScience

“'There is no good economics without good politics' — one of the principles of 'The London Consensus,' …” (Branko Milanovic)

Wrong priorities. Wrong methodology. Wrong understanding of science.

For 200+ years, economics has claimed to be science,… pic.twitter.com/HCUBXWeYN4

— AXEC (@EgmontHandtke) December 2, 2025

Occasional X: Clueless economists / Science (CCXXXV)

#Economics#AllYouNeedToKnow

“That's fine, as far as you don't label those who don't believe in your axioms or your definitions 'out of the field'” (Shahin Ashkiani)

For 200+ years, economics has claimed to be a science. But it still is not. The major approaches (Walrasianism,… pic.twitter.com/zV4ldumqb5

— AXEC (@EgmontHandtke) December 2, 2025

For details of the big picture, see cross-references Axiomatization. 

Occasional X: Clueless economists / Science (CCXXXIV)

#Economics#AllYouNeedToKnow

Veblen, too, got it totally wrong. This is much like Shahin Ashkiani nowadays.

Groundhog Day (economics)https://t.co/zGcZZCGHZk

— AXEC (@EgmontHandtke) December 2, 2025

Occasional X: The foul spirit of political economics (CLXXIV)

 

#Economics#AllYouNeedToKnow

“Went like this: first 1/4 was all about mystical interpretations of Keynes' GT, then when I was getting excited that it would be going somewhere, he pulled out the Mankiw book and started teaching IS-LM.” (Rafael Guthmann)

For 200+ years, economics… pic.twitter.com/ZAqvuetIyj

— AXEC (@EgmontHandtke) December 2, 2025

Occasional X: The foul spirit of political economics (CLXXIII)

#Economics#AllYouNeedToKnow

“I used my experience at Cambridge because I was to some extent at the epicentre of heterodoxy. The faculty of economics there is amazing.” (Pontus Rendahl)

Cambridge has always been a place where morons meet.

Marshall and the Cambridge school of…

— AXEC (@EgmontHandtke) December 2, 2025

Occasional X: Paradigm Shift (LXXXVII)

#Economics#AllYouNeedToKnow

“The trouble with macroeconomics is worse. I have observed more than three decades of intellectual regress.” (Paul Romer, quoted by Clint Ballinger)

For 200+ years, economics has claimed to be a science. But it still is not. The major approaches… pic.twitter.com/SjtIa6y7Xa

— AXEC (@EgmontHandtke) December 2, 2025

Occasional X: Clueless economists / Science (CCXXXIII)

#Economics#AllYouNeedToKnow

“The best part of this whole discussion about 'heterodox' approaches is that it takes me back to my undergraduate years, which I remember with real fondness.” (Jesús Fernández-Villaverde)

Jesús Fernández-Villaverde is the representative economist.… pic.twitter.com/BFZDSlTMly

— AXEC (@EgmontHandtke) December 1, 2025

(i) “Recursive Macroeconomic Theory, by Lars Ljungqvist and Thomas J. Sargent, fourth edition” is proto-scientific garbage.

(ii) Jesús Fernández-Villaverde is an #EconBlocker. ⇓

(iii) Academic economics is a scientific fraud. pic.twitter.com/0ul9FnYUjv

— E.K-H (@AXECorg) December 2, 2025

Related 'What’s wrong with DSGE models is the axiom set' and 'DSGE and profit―forget it! MMT and profit―forget it!'

Occasional X: Clueless economists / Science (CCXXXII)

#Economics#AllYouNeedToKnow

“Economics is fundamentally political. … This is something Adam Smith and Karl Marx would likely agree on.” (Jostein Hauge)

Firstly, economics is not a science. Secondly, the representative economist is too dumb for science.

Adam Smith never… pic.twitter.com/tGviHfSGu1

— AXEC (@EgmontHandtke) December 1, 2025

Occasional X: Paradigm Shift (LXXXVI)

#Economics#AllYouNeedToKnow

“Jesús has shown single handedly that econ Twitter is alive and well! … Nothing of what he says is wrong or even controversial in economics.” (Luis Garicano)

Everything Jesús says is proto-scientific garbage.

Modern economics is, what Feynman… pic.twitter.com/Yp5eple7ox

— AXEC (@EgmontHandtke) December 1, 2025

Occasional X: The futile attempt to recycle MMT (CLXXVI)

 

#MMT#FailedFakeScience

“Within a year every commentator & economist will be saying that the govt is not like a household.” (MMT for Progressives)

Within a year, no one will pay any attention to commentators, economists, or MMTers.

Exploding the Household Fallacy…

— AXEC (@EgmontHandtke) December 1, 2025

Occasional X: Clueless economists / Profit (CXVII)

# Economics#AllYouNeedToKnow

“… would it be better for citizenry if they held $1 trillion in net assets owed to them by their govt or by foreign citizens?” (Robert Murphy)

“… would it be better for citizenry if they held $1 trillion in net assets owed to WeThePeople [Sm] or…

— AXEC (@EgmontHandtke) December 1, 2025

Related 'Economists still can't get the sectoral balances right' 

Occasional X: Economists still can't get the sectoral balances right (III)

“Every financial asset is someone else's liability: ∑ A𝒻 ≡ ∑ L𝒻 or A-L=E(0)” (Relearning Economics)

True. That's why Qm≡−Sm. See

First Lecture in New Economic Thinkinghttps://t.co/uEg6iAgKll pic.twitter.com/N18T07aDqG

— E.K-H (@AXECorg) December 1, 2025

Related 'Down with idiocy' 

Occasional X: Clueless economists / Money (LXV)

#Economics#AllYouNeedToKnow

“Because a state which creates its own currency cannot run the fuck out of it.” (Phil Waller)

The counterfeiter never runs out of money.

The point with fiat money is whether it is injected (i) at the supply side (financing the aggregate wage bill)… pic.twitter.com/GGUWTZqVZy

— AXEC (@EgmontHandtke) December 1, 2025  

“It’s never so much [counterfeit money] that it will cause major problems.”

(i) How do you know how much it is?

(ii) Counterfeit money does not cause problems but profits.

“Then they catch the counterfeiters and take back control.”

(iii) Who are they?

(iv) The Central Bank…

— AXEC (@EgmontHandtke) December 2, 2025

Occasional X: Clueless economists / Household Fallacy (LXV)

 

#Economics#AllYouNeedToKnow

“A household economy is nothing like a national budget, and we really need to break that metaphor” (Zack Polanski)

The financial media are telling silly stories. The narrative's main ingredients are metaphors, false historical analogies, and…

— AXEC (@EgmontHandtke) December 1, 2025