Liberty Forged

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

Posts Tagged ‘personal’

Keynes’ General Theory. Much like cluster bombs for the world.

Posted by Jesse on March 5, 2008

The Crisis Point of the Inflationary Boom
By Sean Corrigan

Posted on 3/4/2008

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In a recent survey — jointly conducted by CFO magazine and Duke University — one of the top concerns being expressed by industry executives across the United States, Europe, and Asia was that of the rising cost and — to a slightly lesser extent — the reduced availability of labor, especially that of the skilled variety.

The worry most forcibly competing with this angst was that of whether “consumer demand” would hold up in coming months.

For a Keynesian this conflict can have no meaning, for the central chicanery around which the General Theory is constructed is that depressions can be warded off through monetary debasement, simply by stuffing the workers’ pockets with extra cash, while simultaneously fooling them as to the real value of the nominal wages being received in such a newly clipped coinage.

In the case where wages are rising (labor costs are mounting) because employment is near full (suitable candidates for work are hard to find) then, assuming the mythical “propensity to consume” remains broadly constant, consumer demand should be a shoe-in, and unlearned industrialists need not lose too much sleep over their prospects for either sales or profits.

Granted, “end demand” could also become (temporarily) curtailed by a sudden outbreak of thrift, that virulent, unpredictable strain of global pandemic feared by the macromancers more than dirty bombs, bird flu, melting ice caps, and a direct asteroid strike, combined, for its potency in disrupting the pristine, academic beauty of their consumption functions and ISLM curves.

The unlikelihood of this taking place in a world whose mail boxes bulge daily with unsolicited offers of new credit, and whose masses have been conditioned to view shopping as a sacramental rite, should be all too apparent.

In fact, what our survey results really display are the classic symptoms of the unhealthy discoordination that an unbacked credit expansion induces in the body economic.

What we see here is that most of the businessmen canvassed are finding their costs are rising and, in particular, the dominant cost they typically bear: that associated with retaining a competent and motivated workforce. At the same time, those who do not directly play a part in satisfying the needs of end consumers (an overriding majority, if our sample is representative of industrial and commercial organization as a whole) are beginning to fret about a slackening of demand for their (mainly higher and intermediate goods) output.

As Mises, Hayek, et al. took great pains to explain, what this means is that the seemingly golden age — in reality, a thinly gilded one — during which the first, most favored issuers of cheap credit and artificially boosted equity prices enjoyed almost effortless success, has reached the limit of its ability to postpone the workings of fundamental economic law.

Even if financial capital once appeared so abundant as to provoke strange, Swiftian fantasies about the “saving glut” and the “asset shortage,” real, physical capital was never called into being quite so readily, since its creation requires not the staccato keystroke of a fiat banker, but entrepreneurial vision, hard work, and genuine saving.

By that last we mean a voluntary abstention from current consumption, undertaken in order to improve the chance of greater plenty in the future, and not the corrupt preemption of a man’s spending power — effected with monetary trickery — which inflationists laud as “forced saving.” Being a species of initially unrecognized compulsion, this is a deceit doomed to fatal self-contradiction, once its dupes wake up to the nature of the con being practiced upon them.

Since the boom has been driven forward according to the projections of the borrowers and the low-hurdle eagerness of their lenders, rather than being predicated on meeting the imperatives of consumer sovereignty, we eventually find ambition has come to overmaster achievability and hope to have triumphed over hardheaded calculation.

To be harmonious and self-consistent, production should be guided by the wants of those whose ability to express them comes by virtue of being in harness to the same web of mutually supportive processes that help satisfy the needs of others, in turn. If not, scarce physical resources will be squandered in trying to realize misplaced visions of a world as overbrimming with affordable means as the unnaturally low interest rate treacherously seems to imply.

Worse still, once the fever of the boom spreads from its initial promoters and their preferred clients to infect the populace at large, sobriety and forbearance tends to vanish in a kind of Gresham’s Law of the spirit. A world awash with “liquidity” is not one where the steady flame of good husbandry can outshine the neon-lit promise of instant gain.

To recap, what then we find is that not only does the availability of financial capital become wholly divorced from the extent of the pool of physical capital goods; not only does much of that pool become misused (and, hence, ultimately, stripped of its original “capitalness”); but that the wellspring of capital maintenance and augmentation — namely, voluntary saving — is concreted over to provide a gaudy, Baroque fountain of greater exhaustive consumption.

As this happens, many final-goods prices will rise as they are revealed to have been undersupplied in relation to the monetary means now pouring into the hands of their would-be consumers. Where such goods also comprise inputs to production taking place further upstream (as is archetypically the case with, say, energy), this increase in expense will primarily add to costs and may therefore begin to sap profitability, if these are not either offset with greater efficiencies or fully recouped in higher selling prices.

Furthermore, as they find their standards of living slipping, those workers who are so enabled — and they will be legion at the height of the boom — will be far less shy about insisting upon more from their employers, by way of compensation for their efforts. Labor costs will now feature in the list of boardroom anxieties.

Simultaneously, since “demand” will have come to a white-hot focus of insistency on end-consumer items, all those who can do so will be shifting resources towards meeting it. If this means abandoning half-completed schemes for long-duration projects in favor of pursuing more mundane but now more lucrative goals, such as putting food on the average man’s table and keeping his boiler stoked with fuel in the here-and-now, so be it.

Unfortunately for the Keynesians, with their quaint, quasi-hydraulic depiction of the economy, such intensified end demand will not automatically translate into higher revenues for all the businesses strung out along the chain of production, just as a sudden appetite for beef will not instantly cause the grass upon which the cattle feed to grow more luxuriantly in the pasture.

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What it will tend to do instead is to strip those not immediately involved in meeting that end demand of their ability to call upon productive resources on the same terms as before.

Squeezing margins as in a vice, this development may also diminish the orders received from those closer to the shop front, since these erstwhile business customers will now be too busy scrambling to restack their emptying shelves to contemplate closing off the sales area for a refit, much less to ponder the purchase of a gimmicky new IT system, or to think of splashing out on an expensive and distinctly nonessential corporate makeover.

This last may not wholly be a matter of discretion since, besides seeing their own wage bill expand, consumer-goods merchants are likely to see inventory replacement come complete with higher invoices, so working-capital needs may soon start to crowd out much more deferrable fixed-investment schedules.

Costs up, labor more pricey, yet demand flagging: this is the fate of all too many of the myriad businesses which comprise the vast, hidden, submarine bulk of the iceberg that is our modern, highly specialized, vertically stratified, distributed assembly-line economy — to the befuddlement of a mainstream lacking a proper theory of capital or a true appreciation of the role of time.

Welcome to the crisis point of the inflationary boom!

Sean Corrigan is Chief Investment Strategist at Diapason Commodities Management. Send him mail. See his articles. Comment on the blog.

Posted in *Take Action, abortion, antiwar, Constitution, Current Events, democrat, economy, Education, election 2008, free market, Gold, government, healthcare, internet, lew rockwell, Libertarian, mccain, Mises, obama, old right, Politics, Pro Market, republican, Rights, Ron Paul, Rothbard, technology, Video | Tagged: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | 2 Comments »

Iraq Veterans to testify in DC

Posted by Jesse on March 4, 2008

Patriot missiles: Iraq Veterans Against the War
After Vietnam, American veterans testified to the atrocities they witnessed. Now soldiers who fought in Iraq and Afghanistan are about to do the same

This month, for four days in Washington, DC, beginning on March 13, there will be a second Winter Soldier gathering – 37 years after the first. Organised by the protest group Iraq Veterans Against the War (IVAW), US veterans of Iraq and Afghanistan since the 9/11 attack on New York will testify about their experiences. They will present photographs and videos, recorded with mobile phones and digital cameras, to back up their allegations – of brutality, torture and murder.

The veterans are not against the military and seek not to indict it – instead they seek to shine a light on the bigger picture: that the Abu Ghraib prison regime and the Haditha massacre of innocent Iraqis are not isolated incidents perpetrated by “bad seeds” as the military suggests, but evidence of an endemic problem. They will say they were tasked to do terrible things and point the finger up the chain of command, which ignores, diminishes or covers up routine abuse and atrocities.

Some see it as their responsibility to speak out – like Jason Washburn, a US marine who did two tours in Afghanistan and one in Iraq; Logan Laituri, a US Army forward observer in Iraq; and Perry O’Brien, an army medic deployed to Afghanistan in 2003. They believe that, as veterans, they are the most credible sources of information. They say they were put in immoral and often illegal positions. They will speak about what they saw, and what they were asked to do.

Posted in 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 | Tagged: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | 2 Comments »

Concerns about preventative medicine and US healthcare.

Posted by Jesse on March 4, 2008

My response to innercontinental.wordpress.

Jesse (18:11:22) : Your comment is awaiting moderation
Ron Paul is a teacher. That’s the whole reason he got into politics. To teach people about what he had learned concerning economics.

Health should be left to the people and doctors. Not government policy.

People should have freedom of choice and association.

Ron Paul’s policies are preventative policies. Unlike the other candidates, he does not propose how to fix everything. He is just stating the truth about what problems we are facing.

That’s why he’s not taken seriously. The problems we are facing in America are systemic and will take a whole lot of healing. Unfortunately no candidate seems to have a good understanding of the major issues and will only serve to prolong or exascerbate the issues.

One reason healthcare is such an issue is because of cost.
http://www.ronpaul2008.com/articles/54/free-market-medicine/

Another is a matter of choice.
http://www.ronpaul2008.com/articles/53/dietary-supplements-and-health-freedom/

And, lastly, actual science in any field is required. Naturally, one doesn’t have to be a government employee to find a cure, or some other way of helping people.

Thats my two cents. Yes! There is a candidate who is talking about tough medicine. Preventative medicine. And he is a docotr by trade!

Posted in abortion, antiwar, Constitution, Current Events, democrat, economy, Education, election 2008, free market, Gold, government, healthcare, internet, mccain, obama, old right, Politics, republican, Rights, Ron Paul, technology | Tagged: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | 1 Comment »

Good conspiracy, bad theory, and the DC complex.

Posted by Jesse on February 24, 2008

The Conspiracy Theory of History Revisited
by Murray N. Rothbard
This article originally appeared in Reason, April 1977, pp. 39–40.
An excerpt.
“There are, of course, good conspiracy analysts and bad conspiracy analysts, just as there are good and bad historians or practitioners of any discipline. The bad conspiracy analyst tends to make two kinds of mistakes, which indeed leave him open to the Establishment charge of “paranoia.” First, he stops with the cui bono; if measure A benefits X and Y, he simply concludes that therefore X and Y were responsible. He fails to realize that this is just a hypothesis, and must be verified by finding out whether or not X and Y really did so. (Perhaps the wackiest example of this was the British journalist Douglas Reed who, seeing that the result of Hitler’s policies was the destruction of Germany, concluded, without further evidence, that therefore Hitler was a conscious agent of external forces who deliberately set out to ruin Germany.) Secondly, the bad conspiracy analyst seems to have a compulsion to wrap up all the conspiracies, all the bad guy power blocs, into one giant conspiracy. Instead of seeing that there are several power blocs trying to gain control of government, sometimes in conflict and sometimes in alliance, he has to assume – again without evidence – that a small group of men controls them all, and only seems to send them into conflict.”

The State of Conspiracy
by Andrew Ward [February 23, 2008]

So I’ve been living and working in Mordor for about half a year. The experience has been quite illuminating. I realized right off the subsidized-bat that I wasn’t in Kansas anymore when I saw the King’s crime of Taxation Without Representation printed on local license plates. Now that’s supposedly a protest slogan, but it seems more like a slave’s sick, self-deprecating joke. The highways are congested with cars and cameras, but the overpasses aren’t mounted by gun turrets, so the workers don’t complain much. For those who don’t or won’t drive, there’s a neat metro system where the trains run on time some of the time to all kinds of “free” museums espousing the progressive history of government. The parks are there for the people to roam, play frisbee toss, lick ice cream, and read the daily spin under the shadow of various pagan monuments. Meanwhile, the instructed Decider instructs the young armies to invade faraway lands full of sand. There are few worries over war among the diverse populace, for our fair and balanced press has confirmed that the best defense is a blitzkrieg offense. Civilizing these countries through a barrel of a gun with American Democracy is not just for the common good of our infallible nation, but for the world good as well.

I have front row seats to the madness of post-9-11 Washington D.C. The overtly fascist overdrive of the U.S. government has twisted an already backwards nation into a Homeland of Terror. Most of the happy people say the loss of freedom is justified because we obviously “need to be safe from the gang of cavemen.” However, there are those brazen individuals who are more concerned with domestic black helicopters than “the gang of cavemen.” Unanswered questions in the 9-11 Commission Report have led to the creation of quite a few theories revolving around September 11th. But mainstream inputs have already debunked all that Conspiracy Theory rubbish… haven’t they? Hologram planes aside, one or more of the following is true about that tragic day: the government’s past actions provoked the attack; the government was grossly unable (or unwilling?) to protect the country; or it was all just a huge, high-tech deadly magic show put on by very secret, compartmentalized elements of the U.S. (and/or foreign) government. Remember the Maine? Hitler’s Reichstag? The Gulf of Tonkin non-event? Is it really unreasonable for one to suspect the beneficiaries of war and government growth to have had a hand in 9-11? Could a twin tower-sized inside job actually be pulled off? Many folks were outraged with the New York Post’s April 12, 2002 headline: “Bush Knew!” (as if Dubya knows anything). But even the notion that September 11th was an inside job orchestrated solely by the Bush administration ignores the Oligarchy, which has dominated the United States for over a century, regardless of which puppet is in office.

For multiple reasons, I’ve had the opportunity to listen to all kinds of so-called “Conspiracy Theorists” over the phone. Many of them inform me that we’re being listened-in on by They. So goons from NSA or DHS put food on the table by monitoring… me?! I’m flattered! But I’m hearing deep anti-Establishment stuff here, so are They really dumb enough to let this conversation go unmonitored? Anyway, I’m lectured about fluorinated water and the vaccinations with mercury. This troubles me, because I like water and my mom made sure I received every vaccination. Others say I must watch Zeitgeist and Loose Change, for both these online flicks have all the Answers. I’m also told about the founders being Free Masons and then I see the map of the Executive Mansion resting at the top of a city street pentagram. Well… I always suspected that Satan’s power flows through the White House. And what’s this about the U.S. still being under the Martial Law enacted by President Lincoln? No wonder that neo-Confederate Tom DiLorenzo hates Honest Abe so much! These conversations warp me into a dimension where my birth certificate legally handed me over to the “State” of D.C.’s jurisdiction. The task is now to reclaim my legal sovereignty from the U.S. Corporation and to escape the Uniform Commercial Code, the Elite’s shadow legal system that redundantly enslaves us all through a web of buried technicalities. But even as I reach as high as I can for the pyramid’s peak, it is, much to the delight of the owl-worshipping aristocracy, always out of reach.

Have you heard the conspiratorial view of the first through third national banks, where the good ol’ U.S. of A is little more than a sovereign-in-name-only satellite for the British Empire? In this story, Andrew Jackson is hailed as the greatest American ever. Five months after the expiration of the first U.S. Bank’s charter in 1811, Americans would find the British burning down the White House (hallelujah!). However, a miraculous post-war stand by General Jackson in New Orleans sent those Red Coats reeling. Two years after the war’s end in 1814, the privately owned Second Bank’s charter is authorized by then president James Madison, so in 1832 it’s up to president Jackson to veto the rebirth of the dragon-demon from hell. Perhaps Jackson was aware that Mayer Amschel Rothschild once said, “Permit me to issue and control the money of a nation, and I care not who makes its laws.”? Unfortunately for you and me, “Old Hickory” was not around to stop the banker’s secret 1910 Jekyll Island meeting where legislation to cartelize the banking industry was crafted. These bankers, out of the goodness of their hearts, had their men in Congress push for the “much-needed” Federal Reserve Act, which eventually passed in December of 1913 during the administration of their pet president, Woodrow Wilson.

Let’s now take a friendly visit to the generally subversive Council on Foreign Relations, a globalist policy club for the elites founded in 1919 by president Wilson’s right hand man and soul mate, Colonel Edward Mandel House. For almost a 100 years now, CFR members have included the heads of academia, law, media, insurance and especially finance; and every presidential administration since the 1920s has been dominated by CFR members. According to Alex Jones, the mission of the Council on Foreign Relations is to destroy the United States. While I’m not a fan of fronts for the House of Morgan and Rockefeller, does anyone really believe CFR members like Dan Rather are aware of, say, Cecil Rhodes’ American Round Table group? That aside, only 0.001% of the U.S. population can claim membership to the Council on Foreign Relations. With one exception, every media anointed presidential front-runner in this election is a proud, card-carrying member of the highly exclusive CFR. The Huckster is that exception, but the Establishment needed a relative outsider to don the robes of conservative savior. They’d take anybody but that kooky, crackpot Ron Paul. You should all know the media’s song:

Long shot, 9-11 Truther, Ron Paul. Crackpot, Libertarian, Ron Paul. Long shot, Neo-Nazi, Ron Paul!

*End Transmission*

It has long been the dream of powerful men to possess Earth. Throughout history rulers of many a great empire have tried to conquer what they figured was the whole thing. These mad dogs were not raised to be content with the power that they merely inherited. No, the father to son line is always, “There are always more sheep to shepherd.” And thanks to technology, this ant world of ours is becoming a much more manageable ant farm. The State, their corporate beneficiaries and financial masters have managed to sell mercantilism and paper money to the whole world with the goal of obtaining total control. These powers use the United States as the military engine for their New World Order; and a militaristic Empire that the world despises is easily disposable down the road, along with all those silly notions of sovereignty. One hears this and replies “Oh, so you believe in the Illuminati!” Not knowing much about Adam Weishaupt, I explain the long history of the international banking cartel, the socialist tax-exempt foundations and all about the State-media, but their programming responds snidely with “Conspiracy Theorist.”

So while I may never acquire the all-seeing Eye’s view of the Puzzle, I think it’s pretty clear that Conspiracy is a dirty word for a reason: the Establishment engages in conspiratorial acts on a daily basis. It would be foolish for They not to publish loads of worthless historical facts, promote stereotypes along with skin-deep diversity, teach dismal sciences, and report misinformation in order to divide, distract, and mislead the serfs. Think of the armies of dumbed-down children ushered into their local brainwashing center for at least eight mind-numbing hours. Fortunately for Liberty, most don’t finish their homework on so-called market failure. But for “adults” there’s that old, Banker-financed Marxist child’s fable of the Proletariat vs. Bourgeoisie which has crowded out the more accurate, generalized depiction of our situation: the ruling class vs. We, the People. It should be of no surprise that libertarians are widely seen by their fellow peons as poor-hating, ego-worshipping children who just want more of Society’s money.

Maybe this is just the chemtrails talking, but “Conspiracy Theorists” are not crazy for wanting to expose the men behind the curtain. The real crazies are the statists blinded by the curtain of red, white, and blue.

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