Ludwig von Mises
The errors of Keynes have empowered sociopathic political classes all over the world and deprived the world of the economic progress we would otherwise have enjoyed. No amount of stimulus ever seems to be quite enough. And when the stimulus fails, the blinkered Keynesian establishment can only think to double down, never to question the policy itself. The Keynesians are pretending they have everything under control, but we know that’s a fantasy. Simply put, "Keynes must die so the economy may live."
"The classical or orthodox gold standard alone is a truly effective check on the power of the government to inflate the currency. Without such a check all other constitutional safeguards can be rendered vain."
It must be admitted that the worst excesses in this propaganda are not committed by professors of economics but by the teachers of the other social sciences, by journalists, writers and sometimes even by ministers. But the source from which all the slogans of this hectic fanaticism spring is the teachings handed down by the “institutionalist” school of economic policies. All these dogmas and fallacies can be ultimately traced back to allegedly economic doctrines.
Speaking very generally, American libertarianism is consistent nationalism: not the expansionist, militaristic nationalism of Europe, but that of the Founders. In this country, a nationalist necessarily upholds the American tradition of limited government, the rule of law, and – yes – “isolationism” (“She goes not abroad in search of monsters to destroy”). No wonder John Kerry preaches the virtues of a “borderless world,” and warns graduating students of the dangers of “looking inward”! Empires aspiring to world hegemony don’t recognize the legitimacy of borders, and as for looking inward – why do that when we have a whole world to conquer?
The paradox of "planning" is that it cannot plan, because of the absence of economic calculation. What is called a planned economy is no economy at all. It is just a system of groping about in the dark. There is no question of a rational choice of means for the best possible attainment of the ultimate ends sought. What is called conscious planning is precisely the elimination of conscious purposive action.
The history of economic central planning is not exactly glorious. In fact, as American economist Thomas Sowell once noted, "in general [central planning] has a record of failure so blatant that only an intellectual could ignore or evade it."
Human progress has been three steps forward, two steps back. That a non-fringe candidate of a major political party in the United States can call himself a socialist constitutes a leap backward. That it can happen after a century of socialistic horrors: impoverishment, ruination, tyranny, war, and tens of millions dead, bespeaks not just deadly ignorance and delusion, but depravity.
Will the Fed be able to keep the game going? In a word, no. We’ve already seen that even the tiniest of interest rate hikes has gone hand in hand with a huge drop in the markets. Furthermore, the Fed’s subsidies to the banks are now on the order of $11 billion annually, but if they want to raise the fed funds rate to, say, 2 percent, then the annual payment would swell to more than $40 billion.
We cannot be sure what shape the next crisis will take, although it seems likely that it will be yet another “deflation scare”, mainly caused by falling asset prices. However, we do know what the last crisis of the current system will look like. It will entail a crumbling of the public’s faith in fiat money and the institutions that issue and administer it.
While Brazilians are angry and tired of their economic hardships, they are also incensed at the country’s history of corruption, which now includes a massive presidential scandal carried out by politicians and lobbyists during the current and previous administrations. This misconduct has given residents of all walks of life enough incentive to take their demands to the streets. Mainstream media has covered the major protests overtaking the streets of Brazil at the outset of an apparent political revolution, but few discuss the problems that have been brewing for decades in South America’s largest nation.
If you thought negative interest rates were as bad as it could get with central banks, you might be in for a surprise. Central banks have been so spectacularly unsuccessful with their accommodative monetary policies that they are discussing pulling out all the stops to get the results they want. Either you support free markets and freedom of pricing or you support central bank price-fixing and creeping socialism. There is no third way or middle road — socialism and the free market are mutually incompatible.
In response to recent claims by the Obama administration and others that “millions of jobs” have recently been created We 'skeptically' examined the data to see if the claims were true. It turns out that job growth since the 2008 recession has actually been quite weak, and hardly something to boast about. Nevertheless, our conclusions from these analyses tend to rest on the idea that job growth is synonymous with gains in wealth and economic prosperity. But is that a good assumption?
Rubio post-mortems miss the point. In the end, it is just more fall-out from crony capitalism.
What made Europe and Japan agree that negative rates - with all their known and unknown consequences - are a solution to our current economic malaise?
There once was a time when economists would have been in an uproar upon witnessing the shenanigans of today’s central bankers. Nowadays they are not only acquiescing to them, they are actively demanding more and more intervention. Instead of being the voice of reason warning of the dangers such policies harbor, they have become cheerleaders for them. It is only a very small consolation that they will eventually be discredited. The cost will be extremely high.