Archive for the ‘Economics’ Category

Moral Relativism and Subjective Value

Moral Relativism and Subjective Value

Imagine a universe in which there are no sentient, conscious beings. How valuable would gold be? How long would a meter be? What would be the meaning of good or evil or beautiful or ugly? With no one available to ascribe those values, what value would any of these concepts hold? Indeed what is meaning, itself, without sentience to assign it? Read On…

Nothing About this Economy Is Surprising

Nothing About this Economy Is Surprising“Insanity: doing the same thing over and over again and expecting different results.” — Albert Einstein

This Einstein platitude is so overused that I’m somewhat embarrassed to be planting it at the beginning of this article. But then I think about how utterly applicable it is to this piteous disaster we still call the global economy, and its presence becomes profoundly justifiable. Read On…

When the Dollar Collapses, Where Will You Put Your Money?

When the Dollar Collapses, Where Will You Put Your Money?Over the last several years, I have written a multitude of articles about my conviction that the global economy is destined to collapse on a scale humanity has never experienced before. But contrary to some insinuations, my primary objective with these articles is not to create fear and panic. My goal has always been to disseminate these theories to an audience capable of returning debate and criticism. If I am correct, I would hope to prepare at least some small contingency of readers; as a species, I am convinced human beings must find a new way of doing things — because the consequences of the old ways are descending upon us like a maelstrom. So I ask: when the dollar collapses, where will you put your money? Read On…

The Treasury Bubble Blows On

The Treasury Bubble Blows On“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.” — Alan Greenspan

Before he sold his soul and renounced free market economics, Alan Greenspan was one of my heroes, and the above quote exemplifies why. Read On…

Some Very Interesting Facts About Capitalism

facts about capitalism

Here are some very interesting facts about capitalism:

1.  The term Capitalism was popularized by Karl Marx and Friedrich Engels. They explicitly coined the term to refer to the owners of private wealth. This term is a Communist interpretation of markets — from a decidedly egalitarian perspective. It is based on a context in which governments own a significant portion of the capital in society and the economy. It is incomplete and utterly incompatible with concept of free markets – especially as defined by the Austrian School of Economics.
Read On…

Japan, the U.S., and Quantitative Easing

Japan, The U.S., and Quantitative Easing“When future historians look back on our way of curing inflation, they’ll probably compare it to bloodletting in the Middle Ages.” – Lee Iacocca

Japan, the U.S., and Quantiative Easing…

For those of you who aren’t familiar with quantitative easing: it is the important-sounding way central banks manage the economy through monetary policy. The most common way is by manipulating the rate at which they loan to other banks; when the economy is running too hot, the central bank will raise the rate at which it loans money — thereby discouraging borrowing and capital investment. Likewise, if the economy is in the tank a central bank can lower the rate at which it lends to other banks, thereby encouraging borrowing and capital investment in the economy. Read On…

An Artificial Economy

An Artificial Economy“Instead of furthering the inevitable liquidation of the maladjustments brought about by the boom during the last three years, all conceivable means have been used to prevent that readjustment from taking place; and one of these means, which has been repeatedly tried though without success, from the earliest to the most recent stages of depression, has been this deliberate policy of credit expansion. . . . To combat the depression by a forced credit expansion is to attempt to cure the evil by the very means which brought it about; because we are suffering from a misdirection of production, we want to create further misdirection — a procedure that can only lead to a much more severe crisis as soon as the credit expansion comes to an end. . . . It is probably to this experiment, together with the attempts to prevent liquidation once the crisis had come, that we owe the exceptional severity and duration of the depression. We must not forget that, for the last six or eight years, monetary policy all over the world has followed the advice of the stabilizers. It is high time that their influence, which has already done harm enough, should be overthrown.” –Friedrich August von Hayek (1932)

Your government is creating bubbles all around you, in an artificial economy.  Read On…

The Intrinsic Value of Nothing, Part Two

Intrinsic Value of Nothing“There is no such thing as prices outside the market. Prices cannot be constructed synthetically, as it were…

It is ultimately always the subjective value judgments of individuals that determine the formation of prices…”

— Ludwig von Mises, Human Action

“During thousands of years, in all parts of the inhabited earth, innumerable sacrifices have been made to the chimera of just and reasonable prices.” – Ludwig von Mises, The Theory of Money and Credit

In my previous article (Part One of this two-part series), I discussed the fallacy of intrinsic value – especially as it relates to the U.S. dollar, and the shell game the federal government has been playing for the last hundred years or so. In the tornado of debate, castigation, and general mayhem that ensued, some good points emerged – not the least significant of which was the observation that there is a difference between exchange value and use (or utilitarian) value. Read On…

The Intrinsic Value of Nothing, Part One

Intrinsic Value of Nothing“Action is purposive conduct. It is not simply behavior, but behavior begot by judgments of value, aiming at a definite end and guided by ideas concerning the suitability or unsuitability of definite means. . . . It is conscious behavior. It is choosing. It is volition; it is a display of the will.” – Ludwig von Mises

Reach in your wallet, and pull out a dollar bill. Look at it for a moment. Now ask yourself, what is this worth? Next, consider the intrinsic value of nothing — because the idea that anything has “intrinsic value” is a fallacy. Read On…

The God Complex: A Permanent Ban on Financial Derivatives

The God Complex: A Permanent Ban on Financial Derivatives“Knowing a great deal is not the same as being smart; intelligence is not information alone but also judgment, the manner in which information is collected and used” — Dr. Carl Sagan

A surprising number of people in the world today believe society should create a permanent ban on financial derivatives — claiming they are nothing more than gambling instruments, whose only function is to deprive innocent and uninitiated investors of their hard-earned money. And then there are those who know better. Read On…