Liberty Forged

the State has no money of its own, so it has no power of its own. ` Nock

Archive for December, 2008

Demand and Supply (in other words – “Cough it up”)

Posted by Jesse on December 31, 2008

Gary North on the war for the change in your pocket:

“One of the best tests for determining whether a financial columnist or a professional economist is a Keynesian is to examine his views on personal spending. If he favors an increase of personal spending as a means to stimulate the economy, he is a Keynesian. He may not call himself a Keynesian, but he is a Keynesian.

John Maynard Keynes believed that an economy could become a self-reinforcing economic depression because the general public saved too much money. He believed that the key to economic growth is not productivity, but rather spending. He did not believe that the price system is a reliable system of resource allocation. For example, he did not believe that the interest rate is a price that allocates investments and savings. He believed that it is possible that many people in the economy can save money by hoarding currency – not depositing it in a bank, where it is immediately lent. This, he said, undermined the interest rate’s role in equating savings and investments.

First, this observation is irrelevant in a world in which almost all currency is either deposited in a bank account or sent abroad, where it functions as a currency for black markets.

Second, hoarding currency pressures sellers to reduce prices. This acts as an incentive for people to buy more goods and services with their currency. The supposed excess of supply then disappears. Holding currency is a means of thrift. This thrift produces a positive result: lower prices and therefore greater purchasing power for the currency. This process was disparaged by Keynes as a liquidity trap. It was no trap. It was a benefit for holders of currency.

Keynes and his disciples had a solution to the liquidity trap: increased government spending and monetary inflation. This debases the currency, forcing hoarders to spend. The process by which this was accomplished, worldwide, was World War II. In the name of the war effort, every nation authorized its central bank to inflate.

This is what they are all doing again, in our Keynesian world, in which hardly anyone in the West hoards currency. Central banks are inflating. Governments are running huge deficits.

…………..read the whole article here

The fact that professional economists have returned to Keynesianism – in the words of the Bible, like a dog to its vomit – should not surprise anyone. Professional economists cannot shake their faith in big government. They cannot shake their faith in deficit spending. They also cannot shake their faith in the power of government to increase productivity merely by spending money on boondoggles. They believe in government, and in government boondoggles, with the same kind of commitment that theologians in the Middle Ages believed in scholastic theology. They cannot think outside the box. The box is labeled: “Spend!”

The government is determined to thwart all attempts of individuals to save more money and therefore increase productivity. It is committed to the idea that the individual is unreliable in his commitment to deficit spending. There was even a slight uptick in the second quarter of 2008 in household savings. It rose by a little under 3% per annum. This was a reversal of recent years, when most American households did not increase savings at all. In fact, they actually borrowed a in order to maintain their spending habits.”

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>Retail Bailout? – Patrick Byrne: How do we get rid of the Federal Reserve? .. “von Mises”

Posted by Jesse on December 31, 2008

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Posted in america, anarchy, books, business, campaignforliberty, central banking, collectivism, congress, economics, economy, Education, federal reserve, free market, Gold, government, history, international, limited government, LvMInstitute, Mises, Rothbard, society, the fed | Tagged: , , , , , , , , , , , , | 1 Comment »

Permit needed to sell Fruitcakes

Posted by Jesse on December 31, 2008

From Bah Humbug

REDDING, Calif. —  Shasta County health officials are cracking down on an 86-year-old disabled World War II veteran who has been selling homemade fruitcakes for more than a decade.

The Department of Environmental Health cites an obscure law banning food businesses in private homes.

Jack Melton of Redding gave away many of his pecan-filled fruitcakes. But health officials saw a small handmade window sign offering some for sale.

Health specialist Fern Hastings says Melton must use a commercial bakery that has passed a health inspection even if he gives his cakes to the public.

Melton says the 10- to 14-dozen fruitcakes he sold each year helped supplement his Social Security benefits.

But the retired electrician says at his age, it’s probably time to quit anyway.

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Obama/Biden/Bush/Cheney: Same strategy, different election

Posted by Jesse on December 30, 2008

Biden: Progressive Internationalism: A Democratic National Security Strategy is a clear alternative to “the neoconservative right and the non-interventionist left.”

  1. [Promote] Franklin Roosevelt’s pledge to make America the “arsenal of democracy”
  2. America should use its unparalleled power to defend our country and to shape a world
  3. We favor vibrant, entrepreneurial markets, open trade, and active governance to ensure honest competition.
  4. U.S. leadership is integral to shaping a world congenial to our interests and values……strengthening and reforming international institutions — the United Nations, the international financial institutions, the World Trade Organization

PNAC:

Project for the New American Century is a non-profit, educational organization whose goal is to promote American global leadership.

We aim to make the case and rally support for American global leadership

• we need to increase defense spending significantly if we are to carry out our global responsibilities today and modernize our armed forces for the future;
• we need to strengthen our ties to democratic allies and to challenge regimes hostile to our interests and values;
• we need to promote the cause of political and economic freedom abroad;
• we need to accept responsibility for America’s unique role in preserving and extending an international order friendly to our security, our prosperity, and our principles.
————————————

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“The Bailout/Economic Crisis” predicted over 150 years ago

Posted by Jesse on December 30, 2008

there are two issues — and only two — that have always endangered the public peace.

They are slavery and tariffs.

Slavery is a violation, by law, of liberty. The protective tariff is a violation, by law, of property.

It is indeed impossible to imagine, at the very heart of a society, a more astounding fact than this: The law has come to be an instrument of injustice.

there are two kinds of plunder: legal and illegal.

But how is this legal plunder to be identified? Quite simply.

See if the law takes from some persons what belongs to them, and gives it to other persons to whom it does not belong.

See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime.

Then abolish this law without delay, for it is not only an evil itself, but also it is a fertile source for further evils because it invites reprisals. If such a law — which may be an isolated case — is not abolished immediately, it will spread, multiply, and develop into a system.

————————[mp3 available here// complete with introductory article]——————

From bastiat.org: Found on the site US History resources in the translation by Dean Russell for the Foundation for Economic Education

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