Från storm och regn

Nytt på gurufronten.

Trying to stay ahead of the government printing press is the modern citizen’s constant worry.

We have had nearly eight months of life and liberty stolen from us by politicians and their hysteria-promoting accomplices in media. How much more will we accept?

By flooding the market with cheap credit, Alan Greenspan pushed interest rates (including mortgage rates) down to artificially low levels. This caused the bubble in house prices and misallocated too many real resources to the housing sector.

Reserve Bank credit (i.e., the Fed’s sum total of interest bearing assets) ticked to $7.01 trillion, a $15 billion decline from last week’s reading. That pushed the three-month annualized growth rate to minus 2.5%. As the calendar is now beginning to lap last fall’s “not-QE” balance sheet growth, the year-over-year uptick fell to 84.5% from 87% two weeks ago.

Unfortunately, conquest and subjugation of others is hardly a trait unique to Europeans.

If the hallmark of conventional economics is unrealistic models, the hallmark of Austrian economics is a profound appreciation of the price system. Prices provide us with critical information about the relative scarcity of goods and services.

The best social policy is one that supports job creation and rising wages. Entitlements do not make a society more prosperous, and ultimately drive it to stagnation.

Because the rich generally save and invest more of their income than the less wealthy, they are the primary builders of the pool of available capital. Taxing away their incomes means less capital for everyone.

The Fed could certainly encourage more price inflation if it wanted to. But it seems the real goal is not steady inflation, but support for the financial sector.

Thomas Sowell has explained that while "Marx may have explicitly advocated the idea of a democratic worker's government, his own personal style was dictatorial, manipulative, and intolerant."

Önskar en fortsatt skön höstvecka,

Ps. Väderprognosen har gått från storm och regn till lätt bris och duggregn. ”Det skall f-n till att vara väderman/kvinna/hen/den/det.” ”IT TAKES ALL SORTS TO MAKE A WORLD.”

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