Liberty Forged

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

Posts Tagged ‘fiat’

MSNBC asks Ron Paul for education on the economy.

Posted by Jesse on January 27, 2009

“The Federal Reserve pyramids debt“. A fraud and ponzi scheme if there ever was one.

Does Obama even entertain discussion on this issue? Hahahaha.

Posted in *Take Action, america, anarcho capitalism, anarchy, antiwar, barack obama, books, business, campaignforliberty, capitalism, central banking, collectivism, congress, Current Events, democrat, economics, economy, Education, election 2008, family, federal reserve, free market, Gold, government, history, humor, international, Libertarian, Libertarianism, life, limited government, LvMInstitute, media, Mises, obama, Politics, Pro Market, revolution, Rights, Ron Paul, Rothbard, socialism, the fed | Tagged: , , , , , , , , , , , , , , | Leave a Comment »

Gov’t schools equal gov’t spending and war. (and the myth of FDR)

Posted by Jesse on March 3, 2008

The budget should be balanced. Public debt should be reduced. The arrogance of officialdom should be tempered, and assistance to foreign lands should be curtailed, lest Rome become bankrupt.”
~ Marcus Tullius Cicero (106–43 B.C.)

Tim Case writes Devils:
In a recent conversation among friends concerning the present crop of presidential candidates, a close friend emphatically stated that if Ron Paul wasn’t the Republican candidate then, “I will vote for the worst possible candidate with the hope he/she will speed up the implosion of this unconstitutional government…”

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From Antiwar.com Radio with Scott Horton

Interview on March 3, 2008

Jacob Hornberger, founder and president of the Future of Freedom Foundation, discusses the debasement of the dollar to finance out of control government spending and empire, the history of inflation, how it works as a hidden tax, how Bernanke’s admission that it was The Fed who caused the Great Depression, the Republican fake patriots lead by fear monger Bill Kristol, the the chickenhawk, draft-dodgers attempts to live vicariously through the boys they send to war, the White Rose in WWII Germany, Barack Obama, the Bill of Rights, Bush’s handing of Baghdad over to Tehran, and don’t forget the Future of Freedom Foundation’s upcoming conference: “Restoring the Republic: Foreign Policy & Civil Liberties” in Virginia, June 6-8.

MP3 here. (46:12)

He was born and raised in Laredo, Texas, and received his B.A. in economics from Virginia Military Institute and his law degree from the University of Texas. He was a trial attorney for twelve years in Texas. He also was an adjunct professor at the University of Dallas, where he taught law and economics. In 1987, Mr. Hornberger left the practice of law to become director of programs at The Foundation for Economic Education in Irvington-on-Hudson, New York, publisher of The Freeman. Freedom Daily. Fluent in Spanish and conversant in Italian, he has delivered speeches and engaged in debates and discussions about free-market principles with groups all over the United States, as well as Canada, England, Europe, and Latin America, including Brazil, Cuba, Bolivia, Mexico, Costa Rica, and Argentina. He has also advanced freedom and free markets on talk-radio stations all across the country as well as on FOX New’s Neil Cavuto and Greta van Susteren shows. His editorials have appeared in the Washington Post, Charlotte Observer, La Prensa San Diego, El Nuevo Miami Herald, and many others, both in the United States and in Latin America. He is a co-editor or contributor to the eight books that have been published by the Foundation.

Posted in *Take Action, abortion, antiwar, Constitution, Current Events, democrat, economy, Education, election 2008, free market, Gold, government, healthcare, internet, Libertarian, mccain, obama, old right, Politics, republican, Rights, Ron Paul, technology, Video | Tagged: , , , , , , , , , , , , , , , , , , , , , , , | 3 Comments »

Stagflation! Must be that strong economy…

Posted by Jesse on February 29, 2008

The problem with “debt monetization”

Posted in abortion, antiwar, Constitution, Current Events, democrat, economy, Education, election 2008, free market, Gold, healthcare, internet, Libertarian, mccain, obama, old right, Politics, republican, Rights, Ron Paul, technology, Video | Tagged: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | 2 Comments »

Recession or Depression? by Rockwell

Posted by Jesse on January 18, 2008

You can find the article here.

Many people are finally saying the R word: Recession. The fundamentals don’t look good. The externals are even scarier: dollar and stocks skidding, gold and other prices (particularly producer prices) rising. But what has tipped the psychological scales is the statistic no one has cared much about in many years: unemployment.

The actual rate is very low by any historical standard: 5%. What matters here is the direction of change. It jumped from 4.7%. In the old days, unemployment rates of 5% and 6% were considered “full employment” in the Keynesian models. If government attempted to push employment below that level (and it is absurd to think that anyone in Washington can control the economy in that way), it would risk setting off inflation, or so it was believed.

If the actual unemployment rate is low, why this wave of pessimism? All data in the postwar period of American economic history consistently show that an increase in the rate has coincided with the onset of recession. The parallel between the two is the most consistent feature of the business cycle. See the NBER list: 2001, 1990–91, 1981–82, 1980, 1973–75, 1970, 1960–61, 1957–58, 1953–54, and so on. In each case, unemployment begins to rise at the onset.

Now, keep in mind that the link between rising unemployment and recession is largely true by definition only. In other words, those charged with defining what is and what isn’t a recession put a huge weight on rising unemployment. So of course it appears that weak labor markets are what push an economy into recession.

This is sheer fallacy, and a particularly dangerous one. Rising unemployment is a symptom of a recession, not its cause. If the critical problem of recession is unemployment, policy makers are tempted to address this one area to the exclusion of everything else.

Already, Bush administration spokesmen are talking about a “fiscal stimulus” to counter this trend. But why isn’t this laughable on its face? Perhaps if Bush had been a famed penny pincher, you could see how a stimulus would make some sense on the surface. But it is hard to imagine a more fiscally profligate regime than the Bush administration. We can confidently say that more spending is not the answer.

The view that unemployment causes recession was one of the great errors of the New Deal and the Great Depression. The government looted the private sector and transferred it to visible jobs programs. It forced business to maintain high wages precisely when the market was attempting to equilibrate them downward. It increased the costs of hiring just when the costs needed to be lower.

None of it did any good; in fact, it delayed recovery for many years. Lionel Robbins, in his classic book The Great Depression, wrote this in 1934: “If it had not been for the prevalence of the view that wage rates must at all costs be maintained in order to maintain the purchasing power of the consumer, the violence of the present depression and the magnitude of the unemployment which has accompanied it would have been considerably less…. A policy which holds wage rates rigid when the equilibrium rate has altered, is a policy which creates unemployment.”

Writing in 1931, in his book Causes of the Economic Crisis, Ludwig von Mises explained that there would be no involuntary unemployment in a free market. There will always be some unemployment in a market in the same way that there are houses that are empty and not selling and resources that are not being used for production. This isn’t due to market failure but to individuals who have the freedom to lower their asking price, provided they are permitted by policy to do so and businesses are free to negotiate wages freely.

What, then, is the solution to unemployment? “The determination of wage rates must become free once again. The formation of wage rates should be hampered neither by the clubs of striking pickets nor by government’s apparatus of force. Only if the determination of wage rates is free, will they be able to fulfill their function of bringing demand and supply into balance on the labor market.”

There is an error even more fundamental than seeking an interventionist solution to the problem of unemployment. It is the attempt to seek a solution to the recession itself, as if it were the critical problem. Writing all throughout the 1930s, both Mises and F.A. Hayek tried to explain that the recession itself served a market purpose, in the same way a correction to an inflated stock market serves a purpose. It re-coordinates economic structures that have grown seriously out of balance.

In other words, they urged that we look back before the recession, to the good old days of economic boom, and realize the prosperity of the past was a partial illusion. The recession is the way that the economy tells the truth about the fundamentals. The illusion itself is caused by errors in monetary policy. Interest rates are driven down by the Fed, and this causes widespread errors in the investment sector. These investments are unsustainable over the long term. The recession is the time of cleansing out errors and reestablishing economic soundness.

The housing boom and bust is only a symptom of a wider problem. If the economy has indeed fallen into recession, we can know with certainty that recession is precisely what the economy needs the most. It is the equivalent of the drunk who needs time on the wagon.

The rap on the Austrian School of the 1930s is that they counseled a do-nothing policy on the depression. That is not true. There are many things that government can do but they all amount to doing less, which is a positive action of sorts. It must not attempt to prop up and raise wages. It must stop taxing business so heavily and raising the costs of investment. It must cut regulations that are hampering recovery. It can cut spending dramatically as a way of returning resources to the private sector where they can do some good.

What government cannot do without causing even more problems is take positive action against symptoms, such as falling stocks or housing prices, rising unemployment, business failures, and falling incomes. This is precisely what caused the Great Depression to get its name instead of being called what it might have been called: the recession of 1929–1931.

Posted in *Take Action, Current Events, economy, Education, free market, healthcare, old right, Politics, Pro Market, Ron Paul | Tagged: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | 3 Comments »

Another in depth look at Ron Paul and claims of bigotry.

Posted by Jesse on January 17, 2008

It’s long but worth a read. Over at opednews.com

“While I strongly believe that Paul did not write the newsletter material quoted in the TNR article, for reasons I will discuss below, it should nonetheless be noted that a good bit of what TNR holds up as oh-my-God!-shocking actually is… not. For example, criticism of Israeli policies, or concern about the influence of the Israeli lobby upon U.S. foreign policy, is not anti-Semitic. Nor is opposition to foreign aid to Israel, especially in the context of Paul’s opposition to all foreign aid.

Similarly, criticism of the Council on Foreign Relations, the Trilateral Commission, and Yale’s sordid Skull and Bones society is surely not outside the bounds of respectable discourse. And concern about an “industrial-banking-political elite” is hardly sinister; jeez, what intelligent non-Establishment political observer doesn’t worry about some variant or other of this? Isn’t that essentially what Eisenhower was warning about in his famous “military-industrial complex” speech?

And when did it become “paranoia” to oppose the Federal Reserve System and to support a gold standard instead of easily-inflated paper currency?”

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“TNR claims one article “had kind words” for Klan nutball David Duke. Upon actually reading it, however, one finds no “kind words” for Duke (though the short article is somewhat obnoxious). Rather, the article — written immediately after Duke’s shocking 44 percent showing in the 1990 Louisiana Senate primary — examines Duke’s strategy of building a populist movement against high taxes, big government, and welfare, as a possible model for other candidates without Duke’s nasty background and racist views. Tellingly, TNR fails to quote a later newsletter at their site that denounces Duke as “an adherent of the violent philosophy of the KKK” and wonders why the media spends so much time attacking the politically impotent Duke and tiny bands of skinheads instead of going after the likes of Oliver North “who has done much more damage to America than a few scattered fascists.” TNR, in full smear mode, ignores such nuances.

To point out such misrepresentations and exaggerations — and there is much more — is not mere nitpicking, nor is it an attempt to excuse the genuinely vile stuff that TNR has uncovered. It is important because TNR pads the article with such material to back up its claim that the newsletters show “decades worth of obsession with conspiracies … and deeply held bigotry against blacks, Jews, and gays.” However, all the nasty, damning quotes TNR gives — the legitimate meat of their article — appeared sporadically over a narrow, specific time-period: about fifteen issues from very late 1989 to 1993 — about three years, not “decades.” (Comments sympathetic to the militia movement, none bigoted, appear in a couple of 1994 and 1995 issues.)”

Posted in antiwar, Constitution, Current Events, Politics, Ron Paul | Tagged: , , , , , , , , , , , , , , , | 1 Comment »