Posts tagged Austrian Economics
China warns investors to prepare for “wave of bankruptcies”
Things as we have said for nearly 2 years are not good in the Ultimate Crony Capitalist State. In fact they are quite bad.
It is textbook Austrian economics on an almost unimaginable scale.
Central banks poured “stimulus” into the system in 2008-2009 (I am almost sure the Fed leaned on them to do this.) Then as things started to slow a couple years later the Chinese poured more funny money into the system in an effort to keep the real estate boom in China going. They sort of succeeded – for a little bit.
But now there is nowhere to run.
There is also the outside possibility that the Chinese learned something from Japan and the United States. If they let the fat melt off now and then regather there is a very real possibility that they could emerge as a first class rival to the USA. But it would have to melt a lot of fat and I doubt the Communist Party would be able to handle it. But that’s interesting too.
Premier Li Keqiang told lenders to China’s private sector factories they should expect debt defaults as the world’s second largest economy encounters “serious challenges” in the year ahead.
Speaking after the annual session of the national people’s congress, Li Keqiang said: “We are going to confront serious challenges this year and some challenges may be even more complex.” He told lenders to China’s private sector factories they should expect debt defaults.
Image credit: http://www.againstcronycapitalism.org
About Nick Sorrentino
Nick Sorrentino is the co-founder and editor of AgainstCronyCapitalism.org. A political and communications consultant with clients across the political spectrum, he lives just outside of Washington DC where he can keep an eye on Leviathan.
Glenn Jacobs spoke to a group regarding Austian Economics several months back in the video shown below which I had intended to share. Today I realize that despite the best of intentions and saving the video I had not yet posted the presentation by Glenn Jacobs, published by messengersforliberty, which I would encourage all to watch. Should you have the opportunity to attend a meeting featuring Glenn Jacobs as speaker I would recommend attending, as you will find him to be a highly personable and intelligent individual, and that you will find your time very well spent.
Austrian Economics with Glenn Jacobs
Published by messengersforliberty
This economic presentation with Glenn Jacobs, aka Kane, was documented on September 5, 2013.
“It really ticks me off when I hear leftists and statists talk about how the free market causes wealth inequality, the free market doesn’t. The free market though out history has allowed poor people to pull themselves up and has given people more socio economic ability to move up and down the socio economic ladder, up, than anything else in history.
Paul Krugman, who is a keynesian economist par excellence, just wants to inflate like crazy, but yet he writes a column for the New York Times and it’s called ‘Conscience of a Liberal’, because he loves poor people despite the fact that he’s the guy that’s killing them, but then he’ll look at someone like me and say you hate the poor. I don’t hate the poor, I hate the fact that they’re poor.”
Follow Glenn Jacobs on Twitter:
The Media Is Trying To Bury Gold
Ezra Klein once wrote:
Good economists are great storytellers. They sculpt narratives with squiggly graphs and crowded charts.
That’s actually the polar opposite of a good economist, as anyone familiar with Austrian Economics understands. But that’s how mainstream economists operate.
Let’s take a look at how Bloomberg writer, Nicholas Larkin, is “sculpting” gold with “squiggly graphs” and “crowded charts”:
How does one “sculpt” a gold narrative to make it look unattractive?
Well first, you declare that a “Bust” has occurred. And then you make sure that the “squiggly graph” makes it seem like that is the case. You do that by adjusting the time frame of the graph to fit the “narrative”. In other words, the above chart only shows the years 2008-2013.
But what happens when you to expand the chart out:
That changes the narrative…doesn’t it?
Instead of a “Bust”, what we’re actually dealing with is a “Normal Pullback”. Anyone who pays attention to markets has an awareness of the push and pull that occurs at all times. The gold price ran virtually straight up for a good decade!! It would be naive to think that a pullback would never occur.
The media’s constant portrayal of gold’s pullback as a “Bust” is purposefully done. The government (and it’s media) hate anything that challenges their paper money empire. Gold is always the main threat. They know it, they hate it, and will always try to paint gold as some loser metal that you should never consider owning.
There has been no “Bust” in gold.
If you want to see what a real bust looks like, take a look at the old Lehman Brothers chart:
It’s important never to fall victim to the establishment’s “narratives”.
Credit for “squiggly graphs” and “crowded charts”: http://lionsofliberty.com
Economist Attacks Ron Paul
Recently, Ron Paul wrote a important piece, Chained CPI Chains Taxpayers. In the piece, Dr. Paul explains how the chained CPI “is an effort to alter the perceived impact of inflation via the gimmick of ‘full substitution.””
Economist David Henderson objects to this view. He writes:
By using the words “gimmick” and “perceived,” Paul makes it sound as if the purpose of the chained CPI is to trick people into thinking that their cost of living has not gone up as much as the old CPI said. That’s not true. The purpose of the chained CPI is to get a more accurate read on how much the cost of living has gone up.
But how can chained CPI not be a distortion? Henderson, himself, writes:
When the price of one good rises a lot and the price of another good rises a little or not at all, and those goods are, in many people’s minds, substitutes, people will tend to substitute out of the good whose price has risen more and into the good whose price has risen less. So the purpose of the chained CPI is to take account of that in order to estimate the cost of achieving a given level of utility.
First off, if the price of one good rises and therefore I substitute a lower priced good, my standard of living has indeed been altered. If I like steak, but the price of steak rises beyond my budget and I substitute a Mrs. Stouffer’s television dinner, Henderson may not see the decline in my standard of living that has occurred, nevertheless in my mind as consumer, the decline is pretty damn obvious. I have made a substitution, not because I see the two products as nearly identical but because the price increase for steak has pushed it out of my budget. Henderson is wrong in implying that because I am substituting one good for another that I see the two products as early identical.
Second, Henderson pulls out of his hat the use of “utility” as though it were somehow a calculatable cardinal number. There is no such calculatable number. Austrian economics teaches us that all we can do is rank our values on a value scale.
As Murray Rothbard put it:
Ron Paul image added to original post.
Posted by Robert Wenzel
The Best Introduction to Austro Libertarianism Ever Given
Walter Block writes:
Tom Woods gave the opening address for the Mises University of 2013 last night.. In my opinion, this was just about the best introduction to Austro libertarianism ever given.
I fully concur. This one is for the ages.
The Attractiveness of Austrian Economics | Thomas E. Woods, Jr.
Video location: https://www.youtube.com/watch?v=DStLhWMRERM#at=1116
Published by misesmedia
Video Information: Archived from the live Mises.tv broadcast, this lecture was presented by Tom Woods at the 2013 Mises University, hosted by the Ludwig von Mises Institute in Auburn, Alabama, on 21 July 2013.
Posted by Marc Clair
Chris Rossini on RT; Discusses Business Cycles and the Fed
Check out this clip of Lions of Liberty contributor Chris Rossini on RT’s “Prime Interest”, discussing business cycles and the Federal Reserve.
Glenn Jacobs discusses Austrian Economics, Internet Sales Tax, & the Federal Reserve
Published by messengersforliberty
WWE wrestler, Glenn Jacobs, discusses Austrian Economics, Internet Sales Tax, & the Federal Reserve. This video documentation was captured during a TN Campaign for Liberty event on June 13, 2013.
H/T to the Libertarian Party of Tennessee
Tennessee Needs a Political “Cage Match”
Those of us in Tennessee have seen nothing short of political waltzes performed for our entertainment. Occasionally a small spat may arise but then the waltz continues. This show is scheduled prior to elections in Tennessee, and as normal, one must lead and one must follow. Once the show is done we find that the “leader” only has the leadership ability to lead their hand into our pocket.
Time for a revival, of political sense, is on the Tennessee horizon perhaps. The cage match is about to begin, and lucky for us it is a tag team event. The announcer yells into the microphone… “In this corner, wearing the blueish red, or maybe reddish blue trunks, are the current title holders”. Sadly these titles include expanded spending, complete disregard for those they were elected to represent and the safeguarding of the welfare, and occasional warfare state, by the contributing corporations that fuel their re-election campaigns.
The announcer continues… “representing the great state of” (audience thinking - please don’t say it!) “Tennessee, Alexander, Ramsey and Corker!”. The crowd goes wild, with boos and a chant of “RINO” that is shaking the rafters.
The announcer continues… “and their opponent in the opposite corner wearing red, white and blue trunks, Glenn Jacobs”. Now the crowd stands and cheers thinking maybe this one time justice for We The People of Tennessee will be served.
Final words for the announcer… “Let’s get ready to rumble!”, and we are!
Glenn Jacobs, also known in the wrestling circles as Kane, is considering a run in political arena. Although the match with three to one odds are unfair, for the three, due to political regulations Glenn Jacobs can face but one opponent at a time. In this opening match, titled “RINO Hunt”, should Glenn climb into the ring located a Neo-Con Plaza, Vegas books have Jacobs as a 3:2 favorite despite a slew of early wagers by lobbyists from all corporate and military avenues supporting his potential opponent, Lamar Alexander. Alexander has his share of supporters, but this is unable to be immediately confirmed until all the lobbyist phone numbers have been collected, called and results tallied.
Glenn Jacobs, better known as Kane, is a smart and likable guy. He’s considering a run for U.S. Senate against incumbent Lamar Alexander in 2014. Alexander is everything one might loathe in a mainstream GOPer — he’s for interventions abroad and at home, which in Joe Sobran’s playful definition makes him a “moderate.”
Note in the article, at the Daily Caller, that Jacobs’ influences are Austrian economists. Ron Paul is routinely made fun of at the Daily Caller — duh, Ludwig von who? — for his supposedly eccentric interests (eccentric meaning they’re not held by Mitt Romney or Ted Cruz), but the Caller seems favorable toward Kane. That’s great; I never gripe when one of our people is treated respectfully. I suppose it couldn’t hurt that Kane could pound a neocon into the ground while doing 20 other things (but since he believes in the nonaggression principle, he wouldn’t).
Then we have this brief video piece from Gary Franchi’s Next News Network.
Finally, here is an interview that I posted here for fellow Tennesseans and people elsewhere that Gary and N3 held with Glenn Jacobs recently, to get a better understanding of Glenn Jacobs and his thoughts on the issues.
Folks, should this match come to fruition, and if you have had enough of the lobbyist controlled, Obama supporting, status quo champions of the welfare and warfare state, loving to redistribute your hard earned money to their own special interests, corporate partners and Wall Street, and should you think the great state of Tennessee is long over due for intelligent and responsible leadership, take a look and a listen. You know what, there might be some hope after all this time! It may be time to take the blinders off of those who are unknowingly stuck in the political party “box” mentality, thinking that supporting these lap dog politicians is the only choice they have.
Posted by NextNewsNetwork
WWE Pro Wrestling champion Glenn “Kane” Jacobs is about to deliver a mental smackdown on Tennessee’s Lieutenant Governor over a debate on the internet tax AKA the “Marketplace Fairness Act”!
As many Tennessee residents are aware of, RINO Ramsey has many interests, but we the people of Tennessee is not one of them. Ramsey, along with fellow “republican conservatives”, such as Lamar Alexander and Bob Corker, help to prove the only difference in party politics is the lapel pin they may be wearing.
From an earlier message sent by Matt Collins:
Lt. Governor Challenged To Debate Internet Sales Tax By Professional Wrestler
Ron Ramsey Pushes Internet Sales Tax; Grassroots Pushes Back
Knoxville, TN – Lt. Governor Ron Ramsey was challenged to a debate on the Internet Sales Tax by professional WWE wrestler and anti-tax activist Glenn Jacobs. In a blog post today Glenn Jacobs (stage name Kane) criticized the Lt. Governor for pushing the Internet sales tax and called for a debate on the topic at the Lt. Governor’s convenience. The blog post can be viewed here: http://www.tnliberty.org/?p=
“Lt. Gov. Ron Ramsey claims that the Internet sales tax mandate is not a new tax. Nor, according to Ramsey, is it an unfair tax. Ramsey is wrong on both counts.” Glenn writes. “ I, therefore, invite Lt. Gov. Ramsey for a policy debate on the issue of the Marketplace Fairness Act in a public forum at his convenience.”
In recent weeks Glenn Jacobs has been appearing in various media outlets advocating against the national Internet sales tax mandate with appearances on nationally syndicated terrestrial radio, satellite radio, and local radio stations in Tennessee. Jacobs has written multiple blog posts and op-ed pieces against the national Internet sales tax mandate.
Earlier this week the TN Campaign for Liberty challenged Lt. Gov Ramsey to show he had paid the obscure TN Use Tax for his online purchases after he called the vast majority of Tennesseans “criminals” for not paying it. That release can be viewed here: http://tnreport.com/2013/05/
The national Internet sales tax mandate will likely come up for a vote in the US House of Representatives later this year. The bill is known as the “Marketplace Fairness Act” and is being opposed by the Campaign for Liberty, eBay, the Cato Institute, the Heritage Foundation, the National Taxpayers Union, Americans for Tax Reform, Americans for Prosperity, Freedomworks, the Heartland Institute, Congresswoman Marsha Blackburn, and many other conservative figures.
Glenn Jacobs lives with his family in Jefferson City, Tennessee and is a co-founder of the Tennessee Liberty Alliance www.TNLiberty.org. Mr. Jacobs is a critic of big government and a professional wrestler with the WWE.
As 2012 draws to a close, it’s hard not to be reminded that 2013 will begin with Ron Paul retired from Congress. For all those years he was a fearless truth-teller, who exposed and denounced the horrors, domestic or foreign, of the regime. His farewell address – something practically unheard of for a congressman in the first place – will continue to be read years from now, as future Americans look back with astonishment that such a man actually served in the US Congress.
For most of his career, those speeches were delivered to a largely empty chamber and to audiences of modest size around the country. A man of Ron’s intelligence could have grown in stature and influence in no time at all had he been willing to play the game. He wasn’t. And he was perfectly at peace with the result: although he wasn’t a major political celebrity, he had done his moral duty.
Little did he know that those thankless years of pointing out the State’s lies and refusing to be absorbed into the Blob would in fact make him a hero one day. To see Ron speaking to many thousands of cheering kids, when all the while respectable opinion had been warning them to stay far away from this dangerous man, is more gratifying and encouraging than I can say. I was especially thrilled when a tempestuous Ron, responding to the Establishment’s description of his campaign as “dangerous,” said, you’re darn right – I am dangerous, to them.
Some people used to tell Ron that if only he’d stop talking about foreign policy he might win more supporters. He knew it was all nonsense. Foreign policy was the issue that made Ron into a phenomenon. There would have been no Ron Paul movement in the first place had Ron not distinguished himself from the pack by refusing to accept the cartoonish narrative, peddled not only by Rudy Giuliani but also by the luminaries of both major political parties, accounting for the origins of 9/11.
How many bills did he pass, right-wing scoffers demand to know. A successful Republican politician, in between his usual activity of expanding government power, is supposed to have rearranged the deck chairs on the Titanic five or six times, by means of bills with his name on them. At best, the bills these politicos boast about amounted to marginal changes of momentary significance, if even that. More commonly, even the bills they trumpeted turned out to be ambiguous or actually negative from a libertarian standpoint.
What is Ron’s legacy? Not some phony bill, of zero significance in the general avalanche of statism. For his legacy, look around you.
The Federal Reserve, an issue not discussed in American politics in a hundred years, is under greater scrutiny now than ever before. Austrian economics is enjoying a rebirth that dwarfs the attention it received when F.A. Hayek won the Nobel Prize in 1974 – and when you ask people how they heard about the Austrian School, the universal answer is Ron Paul. One man brought about this intellectual revolution. How’s that for a legacy?
And that’s not to mention how many people Ron introduced to libertarian thought in general, or how many hawks reconsidered their position on war because of Ron’s arguments and example.
Even the mainstream media has to acknowledge the existence of a whole new category of thinker: one that is antiwar, anti-Fed, anti-police state, and pro-market. The libertarian view is even on the map of those who despise it. That, too, is Ron’s doing.
Young people are reading major treatises in economics and philosophy because Ron Paul recommended them. Who else in public life can come close to saying that?
How many bills did he get passed? Talk about missing the point.
Where are the hordes of students dying to learn from Herman Cain, Michele Bachmann, Rick Santorum, Newt Gingrich, Tim Pawlenty, or Mitt Romney?
Remember, too, that in politics there’s always some excuse for why the message of liberty can’t be delivered. I have to satisfy the party leadership. I have to keep the media off my back. The moment is inopportune. My constituents aren’t ready to hear it – so instead of explaining myself and persuading them, I’ll just keep my mouth shut, or minimize my position to the point where I sound like any old politician, except ten percent better.
And all the while, would-be donors are assured that this is all a facade, that the politician is really one of us and not what he appears to be. For the time being, you understand, he has to contradict his core beliefs in order to ingratiate himself into the favor of those whose support he will one day need.
Once elected, he still cannot really say what he thinks. Don’t you want him to get re-elected?
Ron never acted this way. At times he would explain the libertarian position in ways likely to resonate with a particular audience, but he never compromised or backed away.
It’s been said that if you ask Ron Paul a question, he gives you a straight answer. That’s an understatement. All through his presidential campaigns he sent the guardians of opinion into hysterics. Why, he can’t say that! That wasn’t even one of the choices! To the gatekeepers’ astonishment, his numbers kept on growing.
No politician is going to trick the public into embracing liberty, even if liberty were his true goal and not just a word he uses in fundraising letters. For liberty to advance, a critical mass of the public has to understand and support it. That doesn’t have to mean a majority, or even anywhere near it. But some baseline of support has to exist.
That is why Ron Paul’s work is so important and so lasting.
Ten years from now, no one will remember the men who opposed Ron in the GOP primaries. Half of them are forgotten already. But fifty years from now (and longer), young kids will still be learning from Ron: reading his books, following his recommendations for further study, and taking inspiration from his courage and principle.
With Ron’s Congressional career drawing to a close, we should remember that we have witnessed something highly unusual, and exceedingly unlikely to be repeated. And we should also remember Ron’s parting advice: the real revolution is not in Washington, DC. It’s in the world of ideas.
That’s what Ron is devoting the rest of his life to, and it’s one more thing he has to teach us. So watch for news of his institutionalized work for peace, his homeschooling curriculum, his homepage, and his TV network. Far from retiring, Ron Paul is stepping up his work for liberty. And in this work, there is a place for all of us.
December 21, 2012
Llewellyn H. Rockwell, Jr. [send him mail], former editorial assistant to Ludwig von Mises and congressional chief of staff to Ron Paul, is founder and chairman of the Mises Institute, executor for the estate of Murray N. Rothbard, and editor of LewRockwell.com. See his books.
Copyright © 2012 by LewRockwell.com. Permission to reprint in whole or in part is gladly granted, provided full credit is given.