The Fantasy of Forecasting: Why Economic Models Fail Central banks and government economists love their charts. GDP growth, unemployment rates, CPI inflation—all delivered like gospel from sanitized boardrooms. But as Frank Shostak bluntly outlines, these models are only as good as their assumptions. And their assumptions are rotten. The entire framework ignores GDP versus real savings, mistaking monetary motion for genuine economic health. The mainstream economic machine builds its worldview on correlation—if A happens and B follows, then A must cause B. But this is pseudoscience wrapped in jargon. Just because unemployment is low and inflation is high doesn't mean one causes the other. These are coincidental signals, not causal explanations. What the Fed doesn't want you to realize is…
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