The Fed’s latest inflationary scheme sounds like a technocratic innovation. It lowered the costs of currency swaps between central banks of the world with the idea that the Fed would do for the globe what Europe, England, and China are too shy to do, which is run the printing presses 24/7 to bail out failing institutions and economies. In effect, the Fed has promised to be the lender of last resort for the entire global economy.
[Read more...]Vindicating the Austrian School of Economics
August 16, 2010 By Leave a Comment
Finally the Austrian school of economics, sometimes referred to as the Austrian Business Cycle Theory (SBCT), is getting some respect, as we learn from DailyBell.com, that quoted an editorial from Ron Smith at The Baltimore Sun saying “The few economists that warned that the credit explosion of recent years would hasten and deepen financial disaster were mainly from the so-called Austrian school and were derided by their Keynesian counterparts as kooks. Who looks kooky now?”
[Read more...]Krugman’s Hoover History
March 25, 2010 By Leave a Comment
At his popular New York Times blog, Paul Krugman is at it again, offering a very misleading analysis of deficit spending. Without technically lying, Krugman perpetuates the myth that Herbert Hoover insisted on budget austerity in the midst of the Great Depression. Then Krugman interprets a chart with adjectives that show his eyes can only see what his Keynesian theory will allow.
[Read more...]National Debt: $12.4 Trillion and Counting
February 18, 2010 By Leave a Comment
We have deficits and debts on the brain today. The federal deficit for the first four months of fiscal 2010 just clocked in at $430.7 billion. That’s 8.8% higher than the year-ago figure.
We remember that when the annual deficit hit a record high $430 billion under the second Bush administration, we thought the world was going to end and we’d have to “buy guns, ammo, dry goods, go into hiding, cling to God and wait for the country and the rest of world to collapse.”
[Read more...]Keynesian Economics: A Halfwit’s Guide to Monetary Inflation
February 12, 2010 By Leave a Comment
Information Clearing House Newsletter had the quote, “Believe those who are seeking the truth; doubt those who find it” by Andre Gide, which is generally true about most things, except in the case of economics, because the only true economic theory has already been found, and it is the Austrian school of economics, also known as the Austrian Business Cycle Theory (ABCT), and I have nothing but contempt for anyone who says differently, especially since it can be found every day, for free, at mises.org, and so to believe anything else is just a matter of stupidity and/or willful ignorance.
[Read more...]The Fallacy of the Fallacy of Composition
January 15, 2010 By Leave a Comment
No unarmed profession has done as much harm as economists.
Recently, Yukio Hatoyama, the new Japanese Prime Minister, proved it again…revealing a budget deficit that must have made Paul Krugman drool. The Japanese government will spend 92.3 trillion yen next year, about 1 trillion dollars. Tax receipts will be enough to cover only half that amount, leaving the nation with the biggest shortfall since WWII.
[Read more...]
Leaping Toward the Keynesian Dream
The Fed’s latest inflationary scheme sounds like a technocratic innovation. It lowered the costs of currency swaps between central banks of the world with the idea that the Fed would do for the globe what Europe, England, and China are too shy to do, which is run the printing presses 24/7 to bail out failing institutions and economies. In effect, the Fed has promised to be the lender of last resort for the entire global economy.
[Read more...]