Liberty Forged

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

Posts Tagged ‘hoover’

Monetary Policy & One World Government

Posted by Jesse on November 26, 2008

Bank Closure Map

“We will not have any more crashes in our time.”
– John Maynard Keynes in 1927

“No Congress of the United States ever assembled, on surveying the state of the Union, has met with a more pleasing prospect than that which appears at the present time. In the domestic field there is tranquility and contentment…and the highest record of years of prosperity. In the foreign field there is peace, the goodwill which comes from mutual understanding.”
– Calvin Coolidge December 4, 1928

“There will be no interruption of our permanent prosperity.”
– Myron E. Forbes, President, Pierce Arrow Motor Car Co., January 12, 1928

“I cannot help but raise a dissenting voice to statements that we are living in a fool’s paradise, and that prosperity in this country must necessarily diminish and recede in the near future.”
– E. H. H. Simmons, President, New York Stock Exchange, January 12, 1929

“There may be a recession in stock prices, but not anything in the nature of a crash.”
– Irving Fisher, leading U.S. economist , New York Times, Sept. 5, 1929

“Unless we are to have a panic — which no one seriously believes, stocks have hit bottom.”
– R. W. McNeal, financial analyst in October 1929

“This crash is not going to have much effect on business.”
– Arthur Reynolds, Chairman of Continental Illinois Bank of Chicago, October 24, 1929

“I have no fear of another comparable decline.”
– Arthur W. Loasby (President of the Equitable Trust Company), quoted in NYT, Friday, October 25, 1929

“Hysteria has now disappeared from Wall Street.”
– The Times of London, November 2, 1929

“Financial storm definitely passed.”
– Bernard Baruch, cablegram to Winston Churchill, November 15, 1929

“I am convinced that through these measures we have reestablished confidence.”
Herbert Hoover, President of the United States, December 1929

“[1930 will be] a splendid employment year.”
– U.S. Dept. of Labor,
New Year’s Forecast, December 1929

“The spring of 1930 marks the end of a period of grave concern…American business is steadily coming back to a normal level of prosperity.”
– Julius Barnes, head of Hoover’s National Business Survey Conference, Mar 16, 1930

“While the crash only took place six months ago, I am convinced we have now passed through the worst — and with continued unity of effort we shall rapidly recover.”
– Herbert Hoover, President of the United States, May 1, 1930

“Gentleman, you have come sixty days too late. The depression is over.”
– Herbert Hoover, responding to a delegation requesting a public works program to help speed the recovery, June 1930

“…by May or June the spring recovery forecast in our letters of last December and November should clearly be apparent…”
– Harvard Economic Society May 17, 1930
“… irregular and conflicting movements of business should soon give way to a sustained recovery…”
June 28, 1930
“… the present depression has about spent its force…”
Aug 30, 1930
“We are now near the end of the declining phase of the depression.”
Nov 15, 1930
“Stabilization at [present] levels is clearly possible.”
Oct 31, 1931

“All safe deposit boxes in banks or financial institutions have been sealed… and may only be opened in the presence of an agent of the I.R.S.”
– President F.D. Roosevelt, 1933

Posted in america, barack obama, campaignforliberty, capitalism, central banking, collectivism, congress, Constitution, Current Events, economics, economy, Education, federal reserve, free market, Gold, government, history, international, limited government, Mine, old right, Politics, Pro Market, republican, revolution, Rights, Ron Paul, the fed | Tagged: , , , , , , , , , , | 2 Comments »

Most of my writing are comments are other blogs….

Posted by Jesse on October 17, 2008

my blog is more of a library with a little bit of “diary/notes” that I feel like recording.

another comment I have made on LibertasExemplar


i wish more people would try to apply the logic you just cited to other problems. (in this country, not other people’s countries) you are exactly correct in asking how government distorts the market. the current banking/wall st. crisis is difficult to analyze for precisely the reason there is and have been massive government interventions.

short term and long term is highly important. if we talked about the theory of intervention in more depth we could expose the reasons why the market is far superior to government control of the economy.

there is no choice that separates short and long, they are integrated. what differentiates the two is a matter of efficiency. so it is simple, yet complex. which is exactly the reason it is inefficient for a central authority to even attempt to command such a complex phenomena as the market.

government cannot control the economy, in fact, it is subject to the economy, not the other way around. this is why it is futile and destructive for government to assume authority in these matters. just as government is supposed to be of, by, and for the people, so is the market. but the market comes first. government is born out of the market. (choices are limited, we live under oppressive standards, lets create a more prosperous environment where our rights are secured and protected, i.e., the liberal idea of the function of government) one can only explain the market and act in it, whereas government is instituted and established to protect the rights to life and property. the market is made up of human actors that produce the goods that we enjoy in life.

it’s easy to see how they are similar, and indeed we can integrate them, but it is completely against the idea of a free society to say that government should create the market and dictate the rules thereof. a free society can be explained in terms of economy, and the government should, if at all, only exist to protect that right to act in the economy so long ones actions are not coercive. a peaceful society should be protected. it cannot be dictated.

so this statement is exactly backwards: “trying to divorce the “free-market” from what is actually happening in the world.”

“That to secure these rights, governments are instituted among men, deriving their just powers from the consent of the governed. That whenever any form of government becomes destructive to these ends, it is the right of the people to alter or to abolish it”

this statement exactly represents the true nature of the market. it is supposed to be voluntary. it cannot be ‘coercive’ and at the same time ‘free’. value is subjective. it cannot be dictated. which is exactly why this bailout is flat-out robbery. “the people”, the citizens are buying at a price that is being dictated by government. there is no choice. this is not the function of government. government is instituted to protect and secure the property of its people, not squander it.


For more on praxeology, austrian theory of price, modern subjectivist economics, causal-realist economic theory, scientific economics and the constructs and structures thereof….Man, Economy, and State would be the source to read.


Capitalism is not the culprit, it’s bad policy by Peter Schiff


Ron Paul is going the distance.

Posted in antiwar, Constitution, Current Events, economy, Education, free market, Mine, Politics, republican, Rights, Ron Paul | Tagged: , , , , , , , , , , | Leave a Comment »

Great Depression parallels

Posted by Jesse on March 14, 2008

This review is excerpted from a letter to the William Volker Fund, dated November 14, 1959.

Lionel Robbins’s The Great Depression (Macmillan, 1934) is one of the great economic works of our time. Its greatness lies not so much in originality of economic thought, as in the application of the best economic thought to the explanation of the cataclysmic phenomena of the Great Depression. This is unquestionably the best work published on the Great Depression.

At the time that Robbins wrote this work, he was perhaps the second most eminent follower of Ludwig von Mises (Hayek being the first). To his work, Robbins brought a clarity and polish of style that I believe to be unequalled among any economists, past or present. Robbins is the premier economic stylist.

In this brief, clear, but extremely meaty book, Robbins sets forth first the Misesian theory of business cycles, and then applies it to the events of the 1920s and 1930s. We see how bank credit expansion in the United States, Great Britain, and other countries (in Britain generated because of the rigid wage structure caused by unions and the unemployment insurance system, as well as a return to the gold standard at too high a par; and in the United States generated by a desire to inflate in order to help Britain as well as an absurd devotion to the ideal of a stable price level) drove the civilized world into a great depression.

Then Robbins shows how the various nations took measures to counteract and cushion the depression that could only make it worse: propping up unsound, shaky business positions; inflating credit; expanding public works; keeping up wage rates (e.g., Hoover and his White House conferences) – all things that prolonged the necessary depression adjustments, and profoundly aggravated the catastrophe. Robbins is particularly bitter about the wave of tariffs, exchange controls, quotas, etc. that prolonged crises, set nation against nation, and fragmented the international division of labor.

And this is not all. Robbins also sets the European scene in the context of the disruptions of the largely free market brought about by World War I; the statization, unionization, and cartelization of the economy that the war brought about; the dislocation of industrial investment and agricultural overproduction brought about by war demand, etc. And above all, the gold standard of pre–World War I, that truly international money, was disrupted and never really brought back again. Robbins shows the tragedy of this, and defends the gold standard vigorously against charges that it “broke down” in 1929. He shows that the US inflation in 1927 and 1928 when it was losing gold, and Britain’s cavalierly going off gold when its bank discount rate was a low 4.5%, was in flagrant violation of the “rules” of the gold standard (as was Britain’s persistent inflationism in the 1920s).

Robbins also has excellent sections demonstrating the Misesian point that one intervention leads inexorably to another intervention or else repeal of the original policy. He also has a critique of the idea of central planning and a fine summation of the Misesian demonstration that socialist economies cannot calculate. Almost every important relevant point is touched upon and handled in unexceptionable fashion. Thus, Robbins, touching on the monopoly question, shows that the only really important monopolies are those created and fostered by governments. He has not the time for a rigorous demonstration of this, but his apercus are important, stimulating, and sound. Robbins sums up his book in this superb passage:

It has been the object … to show that if recovery is to be maintained and future progress assured, there must be a more or less complete reversal of contemporary tendencies of governmental regulation of enterprise. The aim of governmental policy in regard to industry must be to create a field in which the forces of enterprise and the disposal of resources are once more allowed to be governed by the market.

But what is this but the restoration of capitalism? And is not the restoration of capitalism the restoration of the causes of depression?

If the analysis of this essay is correct, the answer is unequivocal. The conditions of recovery which have been stated do indeed involve the restoration of what has been called capitalism. But the slump was not due to these conditions. On the contrary, it was due to their negation. It was due to monetary mismanagement and State intervention operating in a milieu in which the essential strength of capitalism had already been sapped by war and by policy. Ever since the outbreak of war in 1914, the whole tendency of policy has been away from that system, which in spite of the persistence of feudal obstacles and the unprecedented multiplication of the people, produced that enormous increase of wealth per head…. Whether that increase will be resumed, or whether, after perhaps some recovery, we shall be plunged anew into depression and the chaos of planning and restrictionism – that is the issue which depends on our willingness to reverse this tendency.

The Great Depression, in short, is a brilliant work that should be read by every economist. It is not at all outdated. It deserves the widest possible distribution, and would be indeed a fitting companion to Hazlitt’s The Failure of the New Economics – that refutation of the other great explanation of the Depression – the Keynesian.

Murray N. Rothbard (1926–1995) was the author of Man, Economy, and State, Conceived in Liberty, What Has Government Done to Our Money, For a New Liberty, The Case Against the Fed, and many other books and articles. He was also the editor – with Lew Rockwell – of The Rothbard-Rockwell Report.

Posted in america, antiwar, barack obama, books, business, capitalism, congress, Constitution, culture, Current Events, democrat, economy, Education, election 2008, federal reserve, free market, Gold, government, history, international, internet, iran, iraq, John McCain, lew rockwell, Libertarian, life, LvMInstitute, mccain, media, middle east, military, Mises, obama, old right, personal, philosophy, Politics, Pro Market, republican, Rights, Ron Paul, Rothbard, russia, senate, society, technology, thoughts, work, writing | Tagged: , , , , , , , , , , , , , , , , , | 4 Comments »