Despite the fact that the fix has been in since the days of FDR, Bernanke’s press conference this week is a sure sign that Keynes is on the ropes.
And just in case you missed EconStories‘ “Fear the Boom and Bust” from last year…
April 28, 2011 • 8:42 PM 1
December 12, 2010 • 7:34 AM 0
Since 1913, it has engaged in a deliberate policy of inflation- an expansion of the money supply that has resulted in precipitously rising prices. Inflation benefits debtors at the expense of creditors. It benefits those with market power who have the ability to increase prices without losing market share. Inflation destroys real capital and overstates profits. It encourages speculation and spending, at the expense of prudence and savings. Inflation discourages ownership and fosters renting, depriving people of private property and liberty. It hurts those on fixed incomes, especially the poor and middle class…
…There is no historical evidence that a nation which relies on the excess creation of money will benefit from long term prosperity. In actuality, the opposite occurs.
… and calls for Congressional action to
I have my doubts that this will occur but it would be a great first step that has been made more possible by the recent appointment of Ron Paul as Chairman of the Domestic Monetary Policy Subcommittee
June 15, 2010 • 4:29 AM 0
December 26, 2009 • 3:03 PM 0
This is a book for anyone and everyone wanting to make sense of the economic turmoil of the last two years. At the outset, Day very clearly states that his purpose…
…is merely to consider how, after more than 200 years of refining the science of political economy, we arrived in the present situation, and to reflect upon where we are likely to go next. My hope is that it will provide you, the reader, with a rational context that will help you make more informed decisions as you face the difficult challenges that lie ahead. It will also help you put the economic news reported by the financial media in a more historical perspective.
On each point – how we got here, where we’re going, a rational context and a historical perspective – Day delivers; offering a penetrating analysis of three of the most reported, yet inaccurate, economic statistics (GDP, inflation and unemployment), a devastating critique of Keynesian and Monetarist thought, a clear and concise explanation of the Austrian school and its business cycle theory; then ties it all together in a sobering forecast for the future.
As for his conclusions, frankly, I hope he’s wrong. Unfortunately, I think he’s right.
December 14, 2009 • 9:46 PM 0
I’m thoroughly enjoying my read of The Return of The Great Depression, authored by Vox Day. I won’t venture a review yet since I’m not done but it’s safe to say, it’s very well done. Here’s a bit from a section on the Beast from the Sea, the Federal Reserve.
What the theoretical economists and the practical financiers alike have failed to take into account is that the impossibility of socialist calculation applies to the price of money as well as to the prices of goods and services. A central banker has no more ability to correctly ascertain the intersection of the collective supply and demand curves for money in a modern economy than the historical communist planner was able to calculate the correct number of shoes required in the now-defunct socialist economies. The significant point is not that the Federal Reserve’s inability to enforce its target price of money or control the size of the money supply, but its inability to know independent valuations of money set on a dynamic basis by its various buyers and sellers according to their momentary needs. Lacking this godlike knowledge, its actions will inevitably be incorrect no matter what it does, which necessarily casts serious doubt on the utility of the concept of central banking.