Liberty Forged

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

Posts Tagged ‘robert murphy’

whatever neffs

Posted by Jesse on March 14, 2009

if business owners expected “customers” to steal and murder, who would ever open a business?

if i pay for a service i expect what i paid for. if i don’t receive good service, why would i want to continue paying for it?

are you looking forward to your social security check in how ever many decades? i know i’m not. where’s the measure of success? i want to see some competition!

if the government is going to give my money to failed banks, “defense” contractors, jail people who smoke pot and try to prop up economic policies that don’t work, or even “invest” in some broad long-term Obama-vision that no one can seem to explain or agree on, why would i want to pay or invest in such an idea? the problem is, unlike in a free market, what choice do i have? they just take the money. and that’s supposed to be a good example of good government?

and then on top of that we have an organization that tries to rule the market too!

Unnatural Disaster by Thomas Woods

“As with all goods, the supply and demand for lending capital determines the price. If more families are saving or more banks are lending, borrowers don’t have to pay as much to borrow, and interest rates go down. If there’s a rush to borrow or a dearth of lending capital, interest rates go up.”

“Thus the interest rate coordinates production across time. It ensures a compatible mix of market forces: if people want to consume now, businesses respond accordingly; if people want to consume in the future, businesses allocate resources to satisfy that desire. The interest rate can perform this coordinating function only if it is allowed to move freely in response to changes in supply and demand. If the Fed manipulates the interest rate, we should not be surprised by discoordination on a massive scale.”

“The more the Fed inflates, the worse the reckoning will be. Every new wave of artificial credit deforms the capital structure further, making the inevitable bust more severe because so much more capital will have been squandered and so many more resources misallocated.”

Also see:

What is the Free Market by Murray Rothbard

The House Poor by Karen de Coster

And it’s this type of analysis I equate with law and rulers. If a dictator ignores the people’s cries [consumer demand] and continues to press on and oppress, eventually there will be all out war. Dictatorial rule is known for ignoring what people need and want. It destroys prosperity and trust. the ruler is acting in self-interest and is only concerned with the general welfare in so far as it affects self-interest. and the general welfare is defined by whatever the laws are, not what you or I think it may be.

i don’t expect you to agree with me, i don’t expect to change your mind, but if you claim to be able to empathize with “poor” people, or “minorities”, then i expect that one should be able to understand a very simple principle as letting people keep what is rightfully theirs, and not simply say “we’re taking from you for your own good”. you have to be able to convince those people and not just oppress them with your political programs. that’s not a very good long-term strategy to say the least.

Posted in Mine | Tagged: , , , , , , , , , , , , , , , , , , , , , , | Leave a Comment »

So yeah, did you know people predicted this economic mess… with detailed accuracy? (A partial study guide.)

Posted by Jesse on October 22, 2008

Instead of furthering the inevitable liquidation of the maladjustments brought about by the boom during the last three years, all conceivable means have been used to prevent that readjustment from taking place; and one of these means, which has been repeatedly tried though without success, from the earliest to the most recent stages of depression, has been this deliberate policy of credit expansion. … To combat the depression by a forced credit expansion is to attempt to cure the evil by the very means which brought it about; because we are suffering from a misdirection of production, we want to create further misdirection–a procedure that can only lead to a much more severe crisis as soon as the credit expansion comes to an end. …It is probably to this experiment, together with the attempts to prevent liquidation once the crisis had come, that we owe the exceptional severity and duration of the depression.We must not forget that, for the last six or eight years, monetary policy all over the world has followed the advice of the stabilizers. It is high time that their influence, which has already done harm enough, should be overthrown.

June 1932
Introduction to Monetary Theory and the Trade Cycle

(PDF, pp. 5-7), from Prices and Production and Other Works.

———- ———- ———- ———- ———-

Paul Krugman just won the Nobel Prize in Economics from…can you guess?…a central bank.

Not convinced that means anything significant? Okay, fine. Everyone has special interest. It’s policy that matters. Is it good or bad?

How much do you know about the factors involved? What is the issue? Why did it happen all of a sudden?

For so long many people have maintained that the economy is good overall. People argue that it needs to be tweaked and that’s what we all draw lines in the sand about. But What if it is something much more fundamental? What is the consequence of leaving out relevant information?

This interview is great because it is an example of how austrians incorporate praxeology. The economy is more than just some graphs. Anyone who is trying to provide for themselves and needs to work for a living understands that life doesn’t revolve around mathematical equations, functions, CPI, GDP, etc.

Robert Murphy explains in simple terms how the austrian business cycle theory explains(mp3) the general goings-ons of the Fed’s intervention in the economy and how this affects the business world.

The funniest part of the whole interview is the part about drunk college kids trying to swim out to a pile of cash…you have to hear it. Great analogy.

——————————————————-

For more on the related topic

“The Bailout” Reader is here

The Depression Reader is here

Ron Paul has a nice shortie on the Austrian view as well.

Posted in Constitution, Current Events, economy, Education, free market, Politics, Ron Paul | Tagged: , , , , , , , , , , , , | 1 Comment »