This page has been archived and commenting is disabled.
The IMF And Austrian Theory
Submitted by James E Miller via Mises Canada,
Back in the early 1960s, financial journalist Henry Hazlitt warned against efforts to create an international system to help facilitate the smooth transfer of currencies. Representatives from the world’s leading governments were attempting to increase liquidity in global markets. They wanted to make sure the banking system and sovereign governments would never had a lack of funds. Hazlitt was not fooled. “In plain English” he wrote, “they are pushing for more world inflation.” His words, though accurate, went unheeded. The International Monetary Fund, which was established decades earlier, was to play a role in facilitating endless inflation.
Half a century later, the IMF has overseen a tumultuous business cycle that came to a screeching halt in 2008. Big, overleveraged banks were on the verge of collapsing; millions of people lost their jobs and their homes; governments spent billions of dollars to maintain their welfare safety nets. The end result, which is still ongoing, is stagnant economic growth with dim prospects for recovery.
The IMF not only failed to stop the financial crisis from occurring, it encouraged the coordinated credit expansion that allowed housing bubbles in various industrialized countries. But now, the global financing giant appears to be having a “repent thy sinner” moment. In the Fund’s recent bi-annual report, the organization warns that the ultra-low interest policies of central banks is setting the stage for a new bust. According to the Guardian, the IMF says that “more than half a decade in which official borrowing costs have been close to zero had encouraged speculation rather than the hoped-for pick up in investment.”
Does this sound familiar?
Austrian-minded economic observers have been issuing the same warning for years. In the lead-up to the collapse of Lehman Brothers, mainstream commentators were aglow at the new prosperity. They thought the good times were here to last. Investment expert Peter Schiff was famously mocked on national television for saying that U.S. housing prices were unsustainable. Few economists sensed that anything was amiss, even as the Dow Jones Industrial Average hit historic highs. They were all doing their best Irving Fisher impressions; convinced that the market would never plummet but only keep rising.
The housing bubble, of course, came and went. Austrians foretold its bursting and were roundly ignored by most in the econ profession. Brad Delong dismissed the Austrian theory of the 2008 downturn, while calling fear of credit expansion a product of homophobic anti-semitism. Paul Krugman – maintaining his image as an unserious curmudgeon who moonlights as an economist – provided the New York Times with a nice strawman of what constitutes the Austrian explanation of business cycles. Noah Smith recently said Austrians are victims of brain worms.
Now the IMF appears to corroborate what Austrians have been saying all along: if you give banks cheap money, they will invest it in endeavors that aren’t always sustainable. This includes commodities and capital goods. Central bank monetary policy pumps up bank balance sheets, providing the incentive to drive up prices in goods that are deemed profitable. Not all of this investment is reflective of consumer demand. Inflation begets inflation, until the money spreads wide enough in the economy to raise prices at the consumer level. Central banks have two choices at this point: keep printing money or cease the expansion. If money keeps flowing into the system, the currency will soon lose all value. Should the central bank stop printing, there will be a recession of sorts. There is no alternative.
The Austrian theory of the business cycle has never been a radical premise. It only stipulates that any workaround of the natural cycle of economic growth must come with ensuing costs. It’s a simple law: you can’t get something for nothing. A majority of economists believe the opposite. In other words, they believe in magic.
The IMF may finally be waking up to the damage wrought by reckless credit expansion. Its warning couldn’t come at a better time. As Michael Pollaro of Forbes points out, money expansion is decelerating in the U.S. The slowdown in growth could explain the stock market sell-off seen in recent days. When it comes to whacky, out-of-sync monetary policy, a bust is always imminent. When or how the next will occur is unknown; but it will happen.
The IMF’s proposed solution fails to fix the core of the problem. The Fund wants new regulations to curb excessive risk-taking and bubble activities. But the answer isn’t tougher regulation or more vigilant supervision. The only way to stop the relentless boom-and-bust cycle is to allow the market to coordinate individual time preferences with the supply of money. Interest rates can form on their own through the voluntary buying and lending of currency.
So if the Austrian school was so prescient in predicting the housing collapse, and the international body responsible for supervising the global banking system agrees with its theory, where are the apologies? Why haven’t Paul Krugman and his statist comrades, at the very least, acknowledge some merit in the Austrian argument?
The answer is obvious. The second that expansionist, counter-cyclical monetary policy is seen as mere procrastination and not a solution, it will lose all credibility. The big banks will lose their lender of last resort. And sovereign governments will lose their most prominent financier. Ambrose Evans-Pritchard, The Telegraph’s house inflation worshipper, wants permanent, massive money printing to keep the world economy afloat, even as five straight years prove its uselessness. Some people never learn; or won’t let the truth of things interfere with their secondary agenda.
Nobody in the economic intelligentsia is implying that the IMF is staffed by paranoid cranks. They continue to ignore and belittle the Austrian school. This pompous and undeserved behavior will go on until it’s too late. In the process, the ivory tower disciples of Keynes will only further prove their intellectual bankruptcy. The average person never trusted them to begin with. And things certainly won’t change now.
»
- 15914 reads
- Printer-friendly version
- Send to friend
- advertisements -
#imf
IMF chief Christine Lagarde says the plunge in global stock was due to a market 'over-reaction'.
latest
https://tersee.com/#!q=imf&t=text
(chirp,.... chirp,....chirp)
WE WANT EBOLA PORN!
OR AT LEAST SOME OF THOSE RUSSIAN BRIDES WHO YOU KEEP ADVERTISING...
WITH MONEY GUNS!
YEAH, BRING IT!
"...the damage wrought by reckless credit expansion"
Big Complicated sounding words for: I N T E R E S T T I E D T O T H E U N I T O F E X C H A N G E
Translation: SCAM (dressing)
all hail the orange muppet!
...and they made her say "7".
Actually, some people in the economic intelligentsia are saying that the IMF is staffed by people who don't know what they're doing; I don't recall any mention of "paranoid" cranks; but economic cranks; yes; they have very credible critics who have experience at high levels and have done a lot research on them and their theories and they don't believe they are a useful force in the world; because they don't know what they're doing.
i look at it this way: I had a UC-Berkeley PhD student acquaintance who contested my assertions, saying "the US will never get downgraded from A++" waaaayyy back in 2000-01. I was just a kid, maybe I was even talking out of my ass, but even then my meager econ training was flashing a red warning singal, telling me "this can't go on forever." It took a decade for my insights to come to pass.
the intelligentsia have detractors, they have guys like Wait What who will question their assumptions as invalid in the real world, whom they will ignore and push aside, in order to maintain a circle of affirmation that allows them to sleep comfortably at night. this is why orgs like the IMF, World Bank, OECD, central banks, will never have the insights necessary to solve macro-economic problems. they train their intellectual progeny to think like they do, within the limits of macro-econometric models they assume will work as flawlessly as they work on their supercomputers.
it's the utmost of hubris to think that the most sophisticated supercomputer can model the real world in its every detail, and produce appropriate policy derived from those models.
then again, maybe they can; I don't have access to IBM's Sequoia. Maybe it's telling them the only solution is to reduce the global population to coincide with what economic efficiency requires; a smaller, well trained population not prone toward excessive child bearing. if physical contact is required to transmit Ebola, then those less-likely to be sexually active and more physically distant are going to survive while the more intimate (and lascivious) will be the most likely to go.
damn this happy hour alcohol... it always seems to get my mind running in directions most inappropriate for polite society.... this was supposed to be a 1 sentece post.
agreed. you're describing intellectual lemmings, except in the process of taking us over the cliff, they game the system so as to blind us as they grab our parachutes. they float to the ground, and then grab everything else.
computer models are by nature incomplete, which is the ultimate weakness in their predictive value using non-linear models.
thus, those of us aware of the game go long pitchforks and boiled rope, and try to stay out of sight until those items have an opportune moment for use.
there is no polite society for friday happy hour curmudgeons with a bone to pick.
fight club, its what we do.
this was supposed to be a 1 sentece post
Not to worry, it is happy hour here too so all posts read as one sentence.
Texas rumor - Shiner Bock prevents Obola. I don't know hemorraghic fever from shinola but I ain't taking chances.
Learned how to don and duff ppd today to protect against Ebola; if I would have known the truth I would have just brought a couple of cases of Shiner( or maybe a whole keg, it's better that way as all beer is).
it's the utmost of hubris to think that the most sophisticated supercomputer can model the real world in its every detail, and produce appropriate policy derived from those models.
In its current form, the Simulation Argument began in 2003 with the publication of a paper by Nick Bostrom.[1] Bostrom considers that the argument goes beyond skepticism, claiming that "...we have interesting empirical reasons to believe that a certain disjunctive claim about the world is true", one of the disjunctive propositions being that we are almost certainly living in a simulation.[2] Bostrom and other writers postulate there are empirical reasons why the 'Simulation Hypothesis' might be valid.[1][3] Bostrom's trilemma is formulated in temporal logic as follows:[4]
Chalmers, in The Matrix as Metaphysics agrees that this is not a skeptical hypothesis but rather a Metaphysical Hypothesis.[5] Chalmers goes on to identify three separate hypotheses, which, when combined gives what he terms the Matrix Hypothesis; the notion that reality is but a computer simulation:
To summarise; Something somewhere is probably running a simulation of reality on a computer. There is the potential for an infinite number of these simulations that could be run thoughout the expanse and duration of this universe. If any one of those simulations could accurately reflect reality, then any of civilisations within those simulations may also develop the capacity to create a simulation of the universe. Simulations within simulations within simulations. Turtles...all the way down...
The main thrust of your comment is accurate though. Orthodox economics is a tool of the political and financial elite, used to justify policies that benefit a few. It is not an impartial and independent discipline.
Our only real hope is that the Keynesians cause such a collapse that their philosophy will be forever buried along with central banks.
You don't have to hope for that. It's the end game of Keynesian economics where voodoo and economic policy meet. Austrian economics = real world but with real world restrictions. Those money printer ass bags can't have any limitations. No sir.
plenty of keynesians here tonight downing common sense, simply because it doesn't fit the kleptocratic agenda.
bring it on.
you should stop with keynesian bla bla, xxx bla, nothing fucking work anylonger.
keyne theories are as overwhelmed as any other economist on this planet, NOBODY know how to manage this mess.
just like computers and internet, humanity is loosing control on what it invented and and the face of the world gonna be seriously damaged.
the only smart move i see is to offgrid the planet to go back reel economy and near exchange macro market for goods.
any country can build its own tv, cell phone and cars, we must stop to sell AAA to BBB and ccc to DDD. this cannot work anylonger, the balance is broken.
same for food.
rest do not matter.
You manage your shit and leave my shit to me. Don't saddle me with a parasitic psychopath to manage ALL of ours. I just want to be free and free from.
It is unfortunate that most of us will likely end up buried in the same pit. They will not go peacefully.
I have been convinced by their critics; for what ever that's worth; nothing, I would assume.
aaahhhhhhhhhhhhhhhhhhh
we must all listen to the orange lady from Europe with the funny accent who pays no taxes.
Got it.
Loud and clear.
The skim.
It always gets back to the skim.
The average person should have and should be buying Gold and Silver, if they didn't trust. I don't think they have.
the 'average person' doesn't think about any of this stuff. ever.
Fuck the Austrian school.
They favour concentration of capital.
actually Austrians favor freedom. It's not difficult to explain things like ABCT and the pernicious effects of inflation, but bear in mind that the non aggression principle is a huge axiom and obviously is opposed to a system of force and theft and reveres the individual being free and not subject to even an overwhelming majority's whims, something to which the Austrian school alone holds title.
Sorry mate but I don't buy what you are selling?
I have now suscribed to a different school........
http://mercury.blogs.com/.a/6a00d834518c6c69e201053723dc9a970b-800wi
You have the honest Austrians corrupted by the money power and the dishonest austrians who are part of it.
Real Austrians oppose any statist intervention, and people make money by providing what others want at a price that is desirable to them, such that they will voluntarily pay for it.
I am not against the state providing a stable means of exchange. ( in the truest sense of this word and not in CB speeak - if for example there is a loss of income then print to maintain the stock and flow dynamcis of the physical economy)
I am against money (gold ) lenders inflating and deflating the money supply within a stateless system that the Austrians obviously want for their own benefit.
In a stateless system tyranny can just as easily operate outside the state.
corruption is not endemic, though, because people will not use that currency if it is manipulated/won't park their money at the corrupt banks, if they lend it out and do frac reserve, etc. As opposed to the statist quo, which has the FRN the legal tender backed by violence, and taxes on alternatives like PMs and increasing capital controls. There is always going to be corruption; free markets root out these minor fires whereas in statist quo, the bad stuff is never squelched and everything becomes a powder keg for a huge conflagration because people abdicate personal responsibility/doing their due diligence thinking .govt has their back, like FDIC, etc.
Yeah ,free market nirvana
But free for who ?
I love those buzzwords.
Get a life mate.
Dublin was a free market in the early middle ages .........it was one of the largest slave markets in europe.
https://www.youtube.com/watch?v=rerm4Bu-Cf4
baby, meet bathwater.
better to have the sociopaths left without a foothold than cooperating against the rest of us.
you describe fascism, where sociopaths gather and act anywhere they can exercise the power made available.
opposition to that comes from one quarter. those who value freedom above all, and are willing to defend it, until such time as we are left alone to act by the choice of mutual advantage, and where force and coersion are only used in defense against those sociopaths who view themselves as above all, and thereby justified in taking by agression.
ant, or grasshopper.
Let us try it your way. Give me all the power you suggest should be held by someone and we'll see how it works out for you. Odds are you will not favor your false pretense philosophy any longer.
Seems to me Dublin has transformed from mindless slaves into brainwashed ones. I can talk since I'm half Irish and half Scot, the pricks that stayed with the Queen. At least Kilkenny brews good beer. Dublin brews that burnt shit.
Better tyranny from without the State than from within.
This is paper currency after all. No Government that I am aware wants paper money...currency...let alone paper money backed by gold.
My guess is the USA has just asked for all the IMF gold back with this Ebola thing...but we'll see.
We're swimming in refined product right now. It simply defies logic for the holder of the world's reserve currency not to back it with something the whole world agrees is of the greatest of value.
Oil will do of course.
So will natural gas it would seem.
corruption is not endemic... it is pandemic. show me 1 place in the world history that didn't succumb to corruption and I'll show you place that died a fast and insignificant death. the world is all about relationships and the breakdown of those relationships for self-serving purposes.
"They favour concentration of capital."
Isn't that what's happening with keynesian economics?
Do you think I am a Keynesian ?
So in your mind if you are not a Austrian you must be a Keynesian ?
How quaint.
Your mind is a product of the zero hedge lab experiment.
Might be just a point of view problem. We do not have an inflation problem in the USA. Indeed even during the Civil War the Bucky was King Dollar!
And so it is during this Civil War. Only difference this time is that the dollar is the world's reserve currency. Those who have bet against that thing...including our own Government might add...have been annihilated.
great, revert to strawman and ad hominem attack - fine foundation you have there.
In my Goldfinger voice,
"No, Mr. Bond (Cork), I think you are an idiot".
@The Dork of Cork: "Fuck the Austrian school."
No, Fuck Lagarde! How much to get a well-hung and infected Liberian to do Largarde? The video rights to some porn site would make a fortune!
Price to watch: $5.
Satisfaction: Priceless. Especially when viewed 3-4 weeks after the event.
Yeah, fractional reserve banking and government fiat paper have done such a good job of keeping money in the hands of the people.
Giving the banks the power to create endless currency by just making a loan have made the banks a smaller and smaller part of the economy.
Riiiiight.
Yes there was wealth concentration under the gold standard. But it was not the gold that was the problem. It was fractional reserve banking enabled by government forcing the people to take the bankers fractional paper as if it was really money.
Read Murray Rothbard's What Has The Government Done to our Money.
Until you progressives stop being useful idiots for the banksters we all are screwed., that is , unless we stack or encrypt.
Economics is a mixture of theories that do not stand up and statistics . The result is BS
Read about " debunking economics " from Prof . Steve keen
http://www.goodreads.com/book/show/10303367-debunking-economics---revise...
Fuck the NeoCOyNe$ians.
They favour concentration of capital.
There, fixed it for ya.
"The business cycle" is a contrived inflation and deflation event designed to further concentrate money claims.
You are right, but I think the "business cycle" is a model for understanding that contrivance, and is not an endorsement of it. Or at least it should be. A "natural" state would reach equalibrium and there wouldn't be cycles, except for those that orginate externally.
I'm very disappointed in you. Hopefully you're just having a bad week. Austrian economics does not endorse or wish to be responsible for or create any business cycles; it exists, in part to explain the persistant existence of business cycles.
What money printing ?
Nobody deposited money in my bank account and asked that I drink myself senseless.
The money must be invested somehow to get a yield.......but a yield on what exactly ?
perhaps its someone else drinking themselves senseless.
But if nobody has money for the next round.............
What then ?
Wheres the yield baby ?
You ain't going to get a Austrian to buy the house drinks.
They do this everyday in the USA...and more than likely in Europe too.
More than likely your bank account is kept in balance by the State...even though the Bank is being robbed on a daily basis. A good example is Target. That is a huge retailer that got taken down for 400 million last Christmas.
No one said a word.
well, maybe if you're drunk now, you'll be a clearer on these things tomorrow.
Here's a great metaphor for modern day monetary policy..........
http://www.youtube.com/watch?v=gwyDFhLSg2A
But Lagarde said the markets were fairly priced today. Perhaps even oversold.
The Austrian success story ?
Irish M3 :
Y2007 M8 : 235,134 million
Y2014 M8 : 167,820 million
Discuss...............
what did you actually save ?
Tokens ?
What intrinsic value has a token ?
How much real energy capital is burned to save tokens ?
In Ireland almost all of the liquid fuel is burned in the search for scarce tokens.
Almost no liquid fuel is used to produce stuff for consumption as there is no local fucking demand signal.
Any demand signal is of a corporate nature that jumps intrinsic demand as purchasing power has been extracted from the individual.
We can see this best in Ireland where you get a clash of fabian socialists who want to build more houses for people as they have no purchasing power and Austrians who want to extract even more purchasing power.
Both types will extract purchasing power regardless.
Its quite sick really.
Meanwhile in the real world there is 8,000 empty houses in Cork city. (A city of only 40,000~ housing units)
Why are these houses empty - because people don't have the purchasing power.
And round and round it goes where it stops nobody knows........
You need to get yer butt to the USA then. Talk about "exorbitant privilege." Friggin UK.
We don't have that problem over here. You still have property taxes...but the amount of vacated real estate over here is simply enormous. All you need is one US dollar.
Neighbors might look funny though...
Have you somehow conflated Austrian with Austerity ? They're two diferent words.
I would like her definition of how the market should react; that is, what criteria should be used to decide what equities are worth or if value needs adjustment? Because when you make a statement like that, it's totally subjective without an explanation of any kind. The statement standing on its own is basically useless. Supporting statements like "we'd like to see"... well, you know. Disney time.
The market will react exactly how it did. It's funny that free market proponents dismiss the evidence that is right in front of their faces.
This is the problem, perception of reality, or the lack thereof. The Krugmanites and statists believe they can make a model and have nature conform to it. In reality, no matter what, we always end up conforming to nature.
'll Escurraçado but I will say what I think.
The world's largest scourge are the commodities exchanges.
No country in the world should sell their commodities on the Chicago Stock Exchange.
Each country should have its own stock exchange in the country and permit the sale of surplus.
In case of severe drought, excessive rainfall, which is produced in a country should stick to its inhabitants without exports that year.
If anything remains, then yes other countries offer a fair price.
Nothing to export production without first meet domestic market after all, that they were produced, they were passed to heat or floods, and everything that is produced in that territory belongs first and foremost, to that population.
Only change this small prism alter much in world trade may believe.
:-)
And all of this time I've been fooled into thinking that the grower or gatherer of the goodies owned them and not the state. Anytime the PEOPLE own anything, think government owned.
Christine Lagarde's time is coming. It's almost Halloween. She has her IMF broom.
As an average working person who has been reading and reading and reading over the years I understand the gist of this article.
As to my average neighbour? Deer in headlights rolling the dice. But we all understand one thing and that is???? You can't get something for nothing. ( Unless you are 1%). However the average working person only sees their next few paychecks and the dwindling performance in investments. They are playing a survival game.
They have not connected the 2. They do not see the actions of CB's as directly robbing them. They are buying the media message. It is really as simple as that.
I do not know when this hits home for the many. The awakening that they have been intentionally robbed. That their lives are being robbed for the sake of a few (ultimately) by the more than few (the economic Phd idiots)
This guy excuses much. I believe it is not just some intellectual disagreement of theory but a very intentional game being played.
The IMF economists are simple pawns. Krugman is an idiot. But they are all played by flattery and Nobel prizes and thousand dollar dinners. Flattered puppets all patting each other on the back.
I think Yellen is a simpleton. Flattered and seduced and bribed into walking over a moral line. Fools and idiots. Yellen likely has been taken down this river of stupidity partially by her need to be the big cheese AND a woman to boot. And she is being booted right into the front of a speeding train.
But Joe public does not get it at all. And we have many "market players" here. Trying to make a buck off this system and hoping they know the final high. Believing. Or some thinking they will be able to get out; meanwhile making $$. And why not?
As long as we paly along and allow it to go on....guess what? It will. Until it does not. Think anyone here will get the nod?
Like I always say. GET THE FUCK OUT OF THE SYSTEM. TAKE YOUR MONEY/FUTURE OUT OF THE SYSTEM. RUN....DO NOT WALK. FLEE. Deny the use of your hard earned excess capital to the vultures.
When does it change? Maybe when it all comes down and middle class is on the soup lines. THEY are coming after retirement funds. These are just to big not to rape. Psychopaths and users. Get the fuck out before there is legislation of this idiot Myra program. Why do you think that idea was floated out? Why do you think Cyprus bail-ins led to legislation thoughout G7? Do you think they will not ue this? Spin this?
I personally have no desire to own 50% gov. bonds in my retirement account. So I collapsed it. Bottom of the ocean and I am too senile to remember where.
Ah well. Time to pat the cat and pour a gin.
The IMF should learn that risk always bites us all differently as time moves on...
http://nihoncassandra.blogspot.ca/2014/10/the-risk-that-will-bite-you-ne...
"When does it change? Maybe when it all comes down and middle class is on the soup lines. THEY are coming after retirement funds. These are just to big not to rape. Psychopaths and users. Get the fuck out before there is legislation of this idiot Myra program. "
That's right. Next they will just take. You'll have no option. The SS trust fund was just spent. The Psychopaths think of the little people as cattle ready for the slaughter.
Probably utterly worse than that.
Gov. pensions will be shrunk.
BUT it is all these juicy retirement funds. I can hear the panting of desire in my ears. Trillions of savings. Now. That is way too tempting. SS and such will have to survive on some welfare level. Poverty for all.
But those individual retirement funds. The 401k's and Roths and , in Canada, the RRSP and TFSA's and throughout the Western world. Juicy shite. Trillions of dollars that have not been raped totally. (they have been raped by lack of returns and stock manipulations etc.)....but to get OUR hands on it DIRECTLY. All thet cash. What are all the hard working people doing with all "my" cash?
Are we all so stupid that we cannot see it coming? The real big boyz, and their minion puppets cannot stand that retirement accounts are not their property yet. I can hear the drum beat and feel the salivations.
I think it was the Norwegian Sovereign fund that got hassled cause they would not play along in some idiptic scheme. They? The amalgamation of real greed plus their little puppets NEED the trillions to save the balance sheets.
Joe six pack with $150K put away in a 401K? Watch out. The SWAT team is coming.
Indeed Yogi, yes indeed. Sheep to be sheared.
When Brazil agreed to IMF assistance was chaos!
I am representative of this lost decade.
I'm one of the young guys that got no job, I saw my father with all work effort falling living standards.
I saw absurd taxes arise.
I saw state-owned companies were privatized companies, which gave a huge profit.
For the purposes of the IMF is a state enterprise hanger jobs.
In my concept, state-owned company is a distributor of income.
State enterprises move as pachyderms but with high security, many generate profits accruing to the state the population of that country.
Sell ??the world's largest mining company, Vale do Rio Doce private at a bargain price initiative was the end-of-sting.
Do not be alarmed if, in any world crisis Brazilians to revolt and do as in Venezuela.
Privatize.
Back to State - and to us, the people - everything was stolen through bribery.
Argentina did it with the oil company, took back the Spaniards.
hehe.
I think that CFR and IMF had much to do with this pain.
Object is; own everything.
Argentinian people? Fuck that. Resources? Well we will take them all.
Fuck them all. IMF loans are nothing more than loan shark deals.
Get out of the system. Deny them one single dime parked in a bank.
It may not be easy but...
Machines make the money no matter what the People do.
Long after the Governments go belly up the machines will keep making the money. Samuel Morse invented the telegraph in the 1840's...did that bankrupt the postal service? Nope.
You have to drill down on what has value.
A letter with postage matters.
"Ebola free" of course though.
Rubbish, flies in the face of fact etc etc. Central banks continue to print 'money' & the currency still has its value. In fact even the price of gold has fallen some 30% in the last couple of years.
The Mises institute still preaches the quantity theory of money, & so in fact it is its opinion that is worthless, not the currency.
Try the Gold Standard Institute, they at least give lip service to quality. A good place to start anyway.
Nope.
Then you'll continue to believe the Mises Institute, whose opinion will continue to be worthless, while the currency is still 'money'.
"The Mises Institute ..."
It's namesake had about 10*99 the intellect of its current members. Don't equate the two.
... and feel free to disprove Mises' theories of money and credit via ratiocination. I look forward to your response.
Ratiocination!? Is that some word you just made up?
You're a funny cunt tho....
No, that's CunnyFunt to you, bitch!
Look up the word. It's in every praxeologist's vocabulary.
;-)
I learnt 2 big complex words from a funt today
hope my small brain can remember them, tho I have my doubts...
Hey it works until it doesn't right? All these years later and gold is still not considered currency so it must be worthless right? Wait, what is this? Did you say an oz of gold used to sell for $20 and now it sells for over $1,200? Does that not seem as though gold has held it's value while the dollar has lost nearly 100% of it's value in a little over 100 years?
If all that mattered were quantity then yes. Since that is obviously not the point of Austrian economics your man is straw. Value is the key. Markets only work if buyers and sellers are able to exchange what they consider to be fair value. Your currency almost has as little value as your 'work' here. The market is really just a metaphor for nature. You can fight nature (build dams, light the night, 'control' markets) but in the end you will bend and bow as you conform to nature. We all die. Nature always wins. Markets make and break based on value. The current system is breaking because it has less and less value to most people. When the system goes there will still be a market. The market always wins.
Be gone.
Let me kow how you get on when your children are choking as you stuff trillion $ bills down their throats to try to keep them alive.
Let me know just how valuable your fucking fiat is then
"Central banks continue to print 'money' & the currency still has its value."
Depends what you're trying to buy with that currency. Stocks? Bonds? You don't seriously believe there's any real value there, do you?
Want to buy a house? Where I live a 4 bedroom home on a standard west side lot is about 1.5 M. Go east where all the crime is, and you can still get in for under 1 M. No inflation there, right?
Done any food shopping lately? According to my wife, the accountant, prices have been rising by 8-10% annually for at least the last 5 years. Has the average wage gone up by that amount? I doubt it.
This is not a Mises vs Keynes argument, it's a simple observation of a physical reality. You increase the supply of money without a corresponding increase in production, you get inflation. Where the inflation appears will vary according to particular circumstance, but appear it will, and with just as much certainty as the sun rises each morning.
@ THE DORK OF CORK:
Except his name shouted in capital letters, you can join two neurons perhaps one on each side of the brain and produce something tangible?
Without quotes, please.
Maybe some life experience in some distant country that has had the shit that is being overwhelmed by the IMF.
The Catholic University Law School where I studied, the curriculum was all about the beautiful things of Keynes.
Fortunately, I had a teacher who told him to do work in this line, but in the classroom was the Austrian school.
I learned a lot.
Not missing a class, was one of those classes that the whole class was present.
hehe.
@ Kirk2NCC1701:
I liked what you wrote.
The thing is there.
Ah, I'm a fan NCC-1701 series 1960.
Acts. Spock.
:-)
"[The tyranny of modern economics] continue to ignore and belittle the Austrian school. This pompous and undeserved behavior will go on until it’s too late. In the process, the ivory tower disciples of Keynes will only further prove their intellectual bankruptcy. The average person never trusted them to begin with. And things certainly won’t change now."
This may be true but is it any wonder when essays such as this are representative of the opposition?
Keynesian disciples are no more intellectually bankrupt than was Plato. Although their fundamental principle is false, there is an elaborate tapestry of deception woven so intricately that a plethora of distant designs are fabricated with such stunning granduer, provocative emotion, and removed so far away from the principle's first induction that the "average person" can no longer identify the origin of the fundamental principle, let alone ascertain whether it is efficacious or bankrupt.
What do the Austrian disciples do while attempting to offer an opposition against those who appear inellectually bankrupt? They accept the same false terms that the keynsians require in order to deceive their believers. Why would the "average person" then trust anyone else who speaks the same language as the liars? Why would someone then trust anyone who uses the same false terms that tyranny needs in order to promulgate its power in an effort to appear that they oppose that tyranny?
Why do modern austrians agree that institutions that proliferate counterfeit are banks? Why do modern austrians agree that the proliferation of counterfeit is an investment at all? Why are modern austrians only now just saying that "you can't get something for nothing" while at the same time saying that contemporary "banks" are printing "money" which is facilitating "investments?" When banks facilitate money into the economy, this is indeed investment, it is an honest exchange of something-for-something, and that investment is good. By accepting those terms in quotes as defined by keynsians, austrians are contradicting themselves; over and over and over again.
Keynsian disciples lie by using language that is detached from what it is and re-attached to what it is not. They teach that its authoritarian institutions that are proliferating counterfeit are efficacious and offering an exchange of something for something. Austrian disciples are now beginning to say that the keynsian institutions are offering an exchange of something for nothing but by not reclaiming the language that that observation rests upon then the "average person" has great difficulty in either affirming or denying their statement, let alone trusting them. It is almost as if the keynsians are saying 2+2 = 5 and the austrians are saying that 2+2=4; disagreeing with the results but still accepting the terms.
Modern austrians are busy repeating the great ideas of the masters which tyranny has now driven out of context by usurping the language and for the wrong reasons, then, the conclusion of this article is correct: "things certainly won't change now." http://ocsure.blogspot.com
The G.D. Austrians don't have the G.D. solution either but are a sight better than what we have now....
The Austrian Economists may use some of the same deceitful labels as the Neo-Classical turds (worse than the Keynesian turds) because they need to specify reference points in the current corrupt financial system to explain what is going wrong including destructive cycles like the business cycle; however they do indirectly explain that bankster and government thuggery caused this, why this occurs (institutionalised legalised financial fraud), and how we could start to stop this; however until we accept that non-minimal government systems, bank fiat based financial systems, and corporate business systems are gangster heirachies, and fight this, nothing will really change; these heirachies are based on oppression, fraud and corruption, so things like wasted lives, wasted resources, and a priviledged decadent 'elite' should be expected in them!
Printing devalues the currency only if competitor currencies are not also debasing theit currencies In some way...... also depends where that money goes.
Can devalue the value of an economy with printing and increasing debt....and thus the currency if your shirt is too dirty.......however it is the velocity of money that will kill quick if you take your finger out of the dyke.
Can there be such a thing as the "velocity of [productive work]?
Or is what you are decscribing in fact the velocity of [the imitation of productive work]?
HUGE difference. These are as opposite as true and false, something and nothing.
Please learn the difference.
"For the beginning is thought to be more than half of the whole, and many questions we have are cleared up by it." -Aristotle
These articles that profess the incompetency of the fed or financial system is only a testimony of the stupidity of the author. THEY ARE EVIL, SELF SERVING, LUCIFERIAN, SYNAGOGUE OF SATAN SHIT BAGS. And they are hardly incompetent. They are very good at what they do.
@ Infnordz:
Yes!
All this, and a little more!
They were able to take a shit inflationary Germany and fifty years in advancing technology and industry every five years of our time.
Today you have rockets, jet planes, Guestapo - NSA, and that FBY lot of soups little letters - thanks to the Austrians!
Without an oiled Economics do not do that.
Hitler did a lot of shit, okay.
Left a Jew alive and gave the shit he gave.
Kkkkkkkkkkkkkkkkkkkkkkkkkk!
I am a very serious laugh, of course not needed to kill as many Jews, only the banksters, but it was late, it sends those who have money first.
These guys who left before that is produced along with NY and London Banksters of the Second World War.
Until today the Krupp steel is best, lenses in cameras, fine chemicals etc. .
Do not do that without a good economic foundation.
Investing in education and culture.
Japanese did the same thing from the Meiji Era.
A little history would do well to you.
No hard feelings.
:-)
The IMF isn't going to "wake up". They are this empire.
1944:
On 6 November Lord Moyne, British Minister Resident in the Middle East was assassinated in Cairo by two members of the Jewish terrorist group, the Stern Gang, led by future Prime Minister of Israel, Yitzhak Shamir. He is also responsible for an assassination attempt against Harold MacMichael, the High Commissioner of the British Mandate of Palestine, this same year.
Interestingly he also masterminds another successful assassination this year against the United Nations representative in the Middle East, Count Folke Bernadotte who, although he had secured the release of 21,000 prisoners from German camps during World War II, was seen by Yitzak Shamir and his terrorist collaborators as an anti-Zionist.
In Bretton Woods, New Hampshire, two further Rothschild world banks are created. The International Monetary Fund (IMF), and the World Bank.
Amen, zion.
Lagarde,
Take a tree branch and fuck yourself. SDR is not going to replace cash. We will not comply with the digital transactions
Since you don't pay IRS taxes, why should we listen to your bullshit. Await the IMF reply.
The IMF/FED/World Bank/etc. will take and take and take until one of the mechanics of the system fails. It will then be repaired with the help of the tax payers ( invloluntarily, think 2008 bail out, ZIRP, etc.) and the taking will continue again and again until the citizens wake up. Currently we may have 5% of the world paying attention and that's a high figure. The whole thing is executed perfectly from the shadows. The average citizen has no idea who the fed is comprised of, the IMF (IM what?), World bank (do they have atm fees?) There is resistance on the horizon to the zio banks and their agents, but they're seen as the enemy. While they go behind the podium periodically and speak a few words to busy the masses with continous analysis, behind the scenes their plans are executed with much precision. <sigh>
Economics Schools of whatever variations are just belief systems. They are used by Predators to justify their rip-offs.
What matters is fixing the systems of deformed markets where price discovery has gone awry. It is the return to basic discipline to ensure funtioning markets. Under present conditions, it is fixing debts that inevitable shall lead to pains.
Needless to say, captive systems like IMF so corroded that they seek to be useless. They are only useful to the Oligarchs together with the mainstream media to spin voodoo to sustain the raids and traps.
Now they are on to the elixir of structural reforms as panacea to the debt ridden economies. Another snake oil that with the exeption of muppets, markets will not buy.
Just stay away from Predators and paper investments and stay with physicals and be as debt free as possible. That's the only way to avoid being the easy preys. If you wish to play, remember that it is now all trading with worst than casino rules in place.
You can't spend moar than you urn.
Very Simple.
What you just stated just went off the ZH Cliff. When I die, Mrs Atomizer will cremate me. If she gets upset, I can be vacuumed from the Urn and send to the curb.
We both have twisted humor. We joke about this often. Seriously.
Fact is the IMF is a tool of the Western developed countries that provide its funding. This means that when the IMF rubber stamps their policy it means very little and we should not be reassured.
The pool of money the IMF loans and redistributes around the world helps to stabilize countries if they are failing or economically unstable. But many people do not understand who, and how they are funded. While the IMF exerts a fair amount of influence, it is political in nature and pushes the way the wind blows.
This bring up the issue and questions as to how muddled this system is. With a loud voice the IMF is overrated, it often uses only a small amount of money to make the very desperate march in line, at times this means not solving problems but helping to kick the can down the road. For more on the IMF see the article below.
http://brucewilds.blogspot.com/2013/04/imf-overrated-institution.html
E = mc(squared) is from the scientific school of thought.
There are not many schools of thought, just one.
If any evidence presents itself that shows E=mc2 might not be 100% accurate, it is thoroughly investigated to find the true relationship.
All schools of economics are a joke and represent the scientific world when people thought base metals could be turned into gold
When there is an economic school that predicts accurately how the economy will behave, economics will have become a science, today it is just alchemy.
"The average person never trusted them to begin with. And things certainly won’t change now."
Disagree.
The average person is now on the dole and depends entirely on the largess (even if only perceived). They are saviours to the average person.
Celestial Mechanics likes the Dual Mandate.
Expect new lows in the Dow and the S&P next week - downward pressure continues
The S&P 500 is still tracking in lockstep with the Dow Jones Industrials. Like the Dow, the S&P will continue its downward trek in the coming week. The corrective rally Thursday and Friday should have relieved the oversold pressure from earlier in the week allowing the index to trace out new lows over the coming week or so.
Dow:
http://www.globaldeflationnews.com/dow-jones-industrial-averageelliott-wave-update-for-week-ending-10172014/
S&P 500:
http://www.globaldeflationnews.com/sp-500-indexelliott-wave-update-for-week-ending-10172014/
ECB President Mario Draghi's last move towards more QE is no more than stupidity on steroids, even words like misdirected and boneheaded do it a disservice. This is more proof that the Euro-zone is in big trouble, both the union and the flawed currency is again begging to crumble.
One is forced to wonder if Japan and the Yen will crash first considering how each day Japan slides closer to the economic abyss or whether the Euro will lead the way into the wastebasket. Draghi has helped the countries of Europe kick the can down the road but this only delays the failure on the Euro. More on how the Euro-zone has failed to make any real reforms in the article below.
http://brucewilds.blogspot.com/2014/09/euro-zone-and-draghi-both-mired-i...