Of (Economic) Myths And (Central Banking) Heretics

Of (Economic) Myths And (Central Banking) Heretics

By Tyler Durden
Zero Hedge
November 2, 2010

Now that a revisionist political backlash against a system that failed its constituency in every possible way is in full force judging by the sea of red almost visible on the metaphoric CNBC heatmap (and literally so, after a casual glance at the turn in the AUDJPY pair derivative known as the futures), it is time for today's little political diversion to end, and for everyone to redirect their attention to where it belongs: namely the Marriner Eccles building located ironically enough on Constitution Avenue in D.C. With just over 12 hours left until what some consider the most important decision in the history of Keynesian economics, and of the fiat monetary regime, we wish to bring to you an extract from William Buckler's recent edition of his most excellent Privateer newsletter. In it he talks about myths and heretics, about dogma and revolution, about ignorance and abuse thereof, but mostly, he talks about the Federal Reserve, and its imminent end. Since pretty much everything else about what may happen tomorrow has been said, here is an essayistic view about what may happen the day after tomorrow.

Of Myths And Heretics

Around 250 BC, the Greek mathematician Eratosthenes proved that the earth was round and calculated its circumference with remarkable accuracy. Almost 1800 years later in 1519, 237 men under Ferdinand Magellan set out in five ships from Seville in Spain. Three years later, 18 men in one ship returned, having completed the first widely known historical circumnavigation of the earth. Even after this proof, many clung to the myth that the earth was flat. Some still do to this day.

In the 15th century, Copernicus displaced the Earth from the centre of the universe, holding that it revolved around the sun - which was the centre of a universe of fixed bodies. In the 16th century, Galileo discovered the moons of Jupiter, proving that not all “heavenly objects” orbit around the earth or the Sun. Giordano Bruno went still further, maintaining that the universe was infinite and therefore had no “centre”. Copernicus got away with it, not having the instruments to prove his contention. Galileo was forced to recant. Bruno refused to recant and was burned at the stake. The reaction to these discoveries by the “powers that be” is typical and reverberates throughout history.

Continued. . .