Economic News

FlyingDutch wrote:
I'm not done yet, i will respond on Revolt tomorrow!
It's a very interresting thread indeed!!Yeah, economics can be explained much simplers then most economist do, they make it hazy and many work for an agenda, so keep you in the dark.




They would have you believe it was so difficult so their "Elitist" schooled economists can run everything. The reality is , Economics really do not have much to do with Mathametics other than reflections of what is currently occuring. The emphasis is on Science and they supress Science in all aspects of society.

-Revolt 426


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V. Conclusion

If one Austrian School of Economics follower were to read this entire critique/arguement , i am quite sure at the very least they would have questions about their own school of economics. Even while they question their own teachings, many will draw upon strawman arguments, the usual ones being "That's Socialism" , "Centralized Power" , "Government is the enemy" , "Regulation is the enemy" , "The Free markets would regulate themselves and build infrastructure"...... These arguments are nothing more then a poor, brainwashed individual , clinging to the Von Mises theories that he/she thought were the truth and cannot handle letting go. This is the precise reason why many concerned people now refer to the Austrian School as a Cult. A Cult of people who are unwilling to compromise, listen or think about any monetary reform other then that of Dr. Von Mises and/or Murray Rothbard.


If you are already beginning to question the Austrian School, Please try to imagine someone educated in Monetary Science listening to absurd arguments on a daily basis, that he/she knows will not work - attempting to highlight the errors and being attacked by a herd of Von Mises readers?. That is my situation, along with a few others on this Forum. We truly care about this Nation, and we know the Austrian School's foundations are 100% lies (Being the Utopian Self Regulating Market, The Insistence that Gold MUST be a Currency, The argument that monetary supply contractions are "meaningless" , the argument that Gold gives currency value as opposed to it's underlying economy, the argument that the Government is too "Stupid" to do anything). All of these arguments have been 100% DEBUNKED in this paper - yet i am positive this thread will get responses to very tune i have just mentioned, in the form of "The laws of supply and demand will determine everything" , or anything short of using Gold as a currency is "Robbery". If This were true, your FIAT dollars would not be able to purchase Gold, hence another strawman argument.

So before replying to this with an attack, i would suggest re-reading it , then re-reading it again. If you still don't understand it, you have every right in the world to cling to your Austrian Teachings - but know in your heart they are not going to work and should they be instated they will do nothing but ACCELERATE the World Wide Economic Collapse, a Collapse greater then the Lombard Banking Collapse of the 14th Century which was later dubbed "The New Dark Age" , in which 1/3rd of Europe was wiped out and the Bubonic Plague emerged.

This has happened before, and unfortunately History repeats itself, and many do not learn from History because they do not read it. They instead, prefer the easy way to learn history - by listening to someone else talk about it instead of researching it. Before demonizing a President, before screaming that word "Socialism" - THINK ABOUT WHAT YOU ARE SAYING, because you are INFLUENCING OTHERS to believe FALSE HISTORY.

To all that have taken the time to read this, i greatly appreciate it. If it intrigues you, do more research and educate others.

-Revolt 426


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http://christianinfobomb.com/phpBB3/viewtopic.php?f=12&t=13915&p=59906#p59906


Revolt 426:


Joined: Mon Jul 06, 2009 5:31 pm
Posts: 222

II. The Government Must NEVER INTERVENE IN or REGULATE the Economy

This foolish myth from the Austrian School of Von Mises is based on the idea that the only way to have a stable market without tyranny is for the Government to remain 100% un-involved in it, that includes issuance of currency. The claim is, an invisible, mythical hand will swoop down and always correct any problems. This rumor is debunked at a later point in this essay. Contrary to this rumor, there are certain regulations (obviously , not all of them) that would very much benefit the Nation. I will go over a few of these regulations and debunk this notion that an Economy with no regulation is infallable and sound. In addition to the utopian "No Regulation" rule, United States history was never based on the Government staying completely out of the economy since our first President, George Washington, who was dedicated to infrastructure projects.

First and foremost, before even addressing types of regulations, the fact of the matter is De-Regulation is what created this crisis. This is a Derivative Crisis combined with a thermo-dynamic breakdown of our Nations Physical Economic Infrastructure or Physical Economy relative to the population density. For those that do not understand what is going on , A Derivative is a mass of Toxic Unpayable debt in the form of Many Mortgages slapped together and called a "Collaterized Debt Obligation" or a "Mortgage Backed Security". These masses of DEBT were created to the tune of atleast 1.5 Quadrillion Dollars (1500 Trillion) , with some newer estimates higher, and Stamped as Triple A "Assets" by regulators. The Derivative industry is 100% Private/Off Book, and was illegal from 1936 till the 1980's When Ronald Reagan legalized them. This overhanging debt is making it impossible for Commercial Banks to function , because all of the major Commercial Banks of the world are interlinked with Derivative Contracts. The important note here is, if Glass Steagalls Prohibition for Commercial/Deposit Taking Banks from Speculating was not repealed in 1999 under Bill Clinton, the Republican Congress and intense lobbying and lying by Larry Summers, this crisis would not be a Break down, but a fixable Depression. However, since Commercial Banks were allowed to engage in speculation - we now have a spider web of 1.5 Quadrillion or more dollars of worthless debt interlinking all major Commercial Banks and Major Insurance Companies. The Insurance Companies, such as the cash unit the criminals use to transfer money to banks AIG , engaged in insuring these Derivatives in the form of Credit Default Swaps (CDS) . When a speculator purchases a Credit Default Swap the Insurer has an obligation to pay a sum near the principle investment to the Speculator. So, in the case of Lehman Bros. , which had massive AIG (CDS) associated with that Investment House, Lehman was intentionally allowed to collapse and it caused a Chain Reaction which took out numerous other institutions including most important, AIG. AIG was Nationalized as a conduit for all bailout money to pay off speculators in the form of Credit Default Swaps - Insurance policies on nothing more than GAMBLING. So in the name of humanity, at least recognize this situation is UNCORRECTABLE unless these institutions with Derivative Exposure are put through Chapter 11 Bankruptcy Re-Organization to audit and freeze all speculative bets in the form of ANY Derivatives permanently to relieve the crushing debt that will eventually destroy the entire world economy.


-Let us start with the infamous Glass Steagall Act, passed by Franklin Roosevelt in 1933. This Act provided standards for Chartered Banks in the form of prohibiting them from Speculating with Depositor Money. Much of the bubble that was imploded in 1929 was a result of the then equivalent to Derivatives, "Options". Prior to this law, Banks that took Deposits were allowed to speculate with other peoples money!. The result of this Act passing and being signed into law was the forced splitting of Mega-Bank (Commercial Banks that were merged with Investment Houses) to isolate the "Option" crisis to Investment Houses and free the Commercial Banks of these debt burdens so they could continue to function. One notable result was the splitting of JP Morgan Bank into JP Morgan and Morgan Stanley. It this a damaging regulation?, to prevent Bankers from speculating with entrusted deposits from the population?. I surely do not think so, and as we all know, this crisis would not be here today if the above parts of that act were not repealed in 1999 which resulted in a 1.5 Quadrillion Dollar bubble of Derivatives and our current MELTDOWN. The Austrian's argue that if Fractional Reserve Banking were not allowed then this act would not be required. I do not see how this assumption is accurate considering if there were no regulations in the alleged Austrian Version of a "Free Market" , there would be nothing preventing the Bankers from taking Deposit money and doing it anyway, after all they are criminals. In addition, i see nothing wrong with setting standards for Commercial Banks, since the goal of a Commercial Bank is to provide credit to business and productive activities as opposed to being parasites. Another problem with this assumption is that using Gold as a currency has been proven to wreck economies , because there is no way to determine the value of the Gold without a relative currency, and it has no resemblence to the value of an actual currency (As shown in this paper) - The result of a Domestic Gold Standard was shown in the resulting Depression after the Panic of 1837 by the policies of Andrew Jackson and Martin Van Buren. So, as shown again, the idea that if an economy has absolutely no regulation , Gold or other commodity based standards will automatically be sound and correct itself is a utopian falsehood. This area of history is one completely ignored by Goldbugs - while they simoultaniously tout President Jackson as a Hero for "Defeating" the Central Bankers, when infact , the Second National Bank was not a Central Bank (But this is another issue) , and he did indeed wipe out much of the Nations wealth which lead to the Civil War about 25 years later.


-Take the ability for speculators.... like Nazi, George Soros to "Short" (or dump and drive down currency's) of third world nations, and recover the currency once it has drastically dropped to profiteer off of other human beings suffering. Exchange Rate Controls in the form of an International Gold Standard to Fix Exchange Rates would quickly solve this problem. In addition, it would stabilize international trade during times of duress (like now). The Bretton Woods System was an International Gold Standard, which anchored the dollar to Gold at 35$ an ounce thus fixing all exchange rates based on each nations Gold Reserves relative to the dollar. The Bretton Woods system worked just fine in regards to preventing currency speculation and stabilizing trade. Suppose for a minute, in our current economic breakdown crisis, one currency inflates and one deflates - would this not render it impossible to trade between these Nations?. The Austrian School opposes Exchange Rate Controls "That is Tyranny", On the contrary, the ability to have your currency destroyed by parasites is tyranny. This system was of course collapsed by Henry Kissinger under the Nixon Administration, not exactly a group of good people. Did they collapse the exchange rate controls to give you freedom or take it away?

-How about Coin Clipping? If we were to have a Domestic Gold Standard imposed on us , the ancient issue of people clipping small pieces of gold off each coin and smelting them into bullion would return , would it not?. With a paper currency, you can cut the bill in half and tape it back together and it still represents the value of the underlying physical economy.

- Bank "Redlining" is also a regulation i find would improve the population. "Redlining" is when a Bank intentionally does not lend or provide services in specific areas because they are either not as profitable, or they wish for this area to remain undeveloped.... If this is allowed to occur, the Bankers certainly have Free Markets, but what about the poverty stricken people who are unable to get lines of credit ?. This is Freedom similar to the Confederate Constitutions definition of what Freedom ought to be, without the General Welfare clause.

- Land Speculation is a very large , and ignored issue in the current economic system. Wealthy people with nefarious intentions buy up lots of land for the sole purpose of leaving them undeveloped. Exxon Mobile and Royal Dutch Shell purchase lots of oil field land and intentionally do not develop them to drive oil prices up.



"How important is land speculation in today's economy? You be the judge. Here we see one of the aces that Donald Trump held during his financial slump of the 1990s: the old Penn Central rail yards, 52 acres on the west side of Manhattan. This photo actually appeared in a late 80s advertisement for the planned "Trump City." Trump held the site, looking just like this, for about fifteen years. Finally, after many rounds of taxpayer-funded offerings -- including the re-routing of the West Side Highway -- the site was developed, into upscale housing."
http://www.henrygeorge.org/bust.htm


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http://bx.businessweek.com/dealing-with-the-home-mortgage-crisis-/view?url=http%3A%2F%2Flibertyrevival.wordpress.com%2F2010%2F02%2F03%2Fthe-austrian-school-deception-22%2F

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Webster Tarpley on Ron Paul's economic philosophy:


Republican Ron Paul, interviewed on August 10 after the close by the infamous Kudlow, blamed the credit market panic on interest rates which had been too low. Paul should recall that any interest rates above 5%, as charged on these mortgages, are historically very high. (During World War II, for example, successful New Deal policies allowed a typical 2% yield for a 10-year Treasury note, with other rates in line with that.) Paul was adamant that there be no bailout, but did not distinguish between help for ordinary people facing foreclosure and eviction on the one hand, and bailouts for predatory financier sharks on the other. His only advice was to “let the market liquidate bad debt and bad investment” – which, under current conditions, will mean that more than 10 million people will be thrown out on the street during the next few months. One hears an echo of monetarist Andrew Mellon, Herbert Hoover’s Secretary of the Treasury, whose advice on how to deal with the Great Depression was “Liquidate labor, liquidate stocks, liquidate real estate….” Those on the receiving end of such “creative destruction,” as Schumpeter called it, have generally lost their enthusiasm for monetarism.

Paul mocked warnings that “poor people are losing their homes” – a sadly Dickensian moment, since that is just what is happening to ten million Americans. When asked how much he would like to cut federal spending, Paul said that under his presidency it would come down by “50-60-70%” – figures which seem to bode ill for the future of Social Security, Medicare, Medicaid, food stamps, unemployment insurance, WIC, Head Start, S-CHIP (medical care for poor children), TANF (what is left of welfare for mothers with dependent children), and other programs which keep many Americans alive. The Republican line from Giuliani to Paul is that these institutions are part of the hated “nanny state.” When asked for specifics about what he would cut, Paul mentioned the abolition of the Department of Education, a favorite target of Republicans. Does that include Pell grants and federal support for subsidized Stafford loans, which are the only way the ghetto poor and much of the middle class can hope to send their children to college? No help here for victims of the current economic breakdown crisis, but Kudlow said that this approach would be well received on Wall Street..

GOPer Ron Paul has said that he admires the late Ohio Senator Robert Taft, “Mr. Republican,” who was like many in his family a member of Skull and Bones. One wonders if this admiration includes Taft’s sponsorship of the infamous union-busting Taft-Hartley Act, which has allowed many southern states to effectively block union organizing with so-called “right to work” laws, thus greatly facilitating the demolition of the US labor movement over recent decades. Taft-Hartley has been the key to the race to the bottom in wages and working conditions in this country. It should be repealed and replaced with a modern version of the pro-labor Wagner Act, which made it easier for workers to organize, bargain collectively, and defend themselves. Repeal of Taft-Hartley would be a first step towards rolling back the low-wage Walmart-McDonalds model for the US economy.