December 07, 2016

Current bank regulating technocrats posing as scientifically knowledgeable are just vulgar impostors.

Sir, Anjana Ahuja refers to how Galileo was imprisoned by the Roman Catholic Church for his conviction that the Earth went round the Sun, and warns scientists may well feel the heat from those in power once again, referring here clearly to Donald Trump. “Echoes of Galileo in the populist retreat from reason” December 7.

Sir, careful there, often those in power masquerade as scientists. For instance bank regulators of the Basel Committee and the Financial Stability Board, behave much more like theologians than the scientists they purport themselves to be. Their creed is: Assets perceived ex ante perceived as risky are ex post risky, and so banks should therefore hold more capital against these.

And if a third, or much lesser class Galileo like me, dares to argue that what is perceived as risky, becomes less dangerous precisely because of that ex ante perception; while what is perceived as safe becomes more dangerous precisely because of that ex ante perception, then he has to be ignored and his questions should not be answered. 

Sir, you want further proof about these fake scientists? Ahuja writes: “Why is science under siege? One possible explanation is that it favours objective evidence over subjective experience.” Well, the Basel Committee never even researched in order obtain objective evidence of what has caused all previous major bank crises, before adopting their own subjectivity as their guiding light.

Lately I have been wondering whether I need to go on a hunger strike or take similar extreme actions, in order to get some response to some very basic questions from the impostors. But perhaps I should refrain from doing so, since I could be burned at the stake… and without the science respectful FT, perhaps also feeling alleviated, not even reporting on the incident.

Like Martin Luther I might just nail my questions on some Church door in Basel, and take it from there.

PS. Let us not forget that Galileo's views were at one moment considered "alternative facts" or "fake news"