Submitted by Pater Tenebrarum of Acting-Man blog,
The Problem of Economic Ignorance
The fact that economic ignorance is widespread is really a big problem in our view. Unfortunately even what is broadly considered the economic mainstream thought is riddled with stuff that we think just doesn’t represent good economics. This is not meant to say that there is absolutely nothing worthwhile offered by the so-called mainstream. Often one comes across valuable insights and stimulating ideas. Still, there are a number of very fundamental issues on which various schools of economic thought don’t agree – beginning with basic questions of methodology.
Regarding the place economics should have in our lives, Ludwig von Mises once wrote: Continue reading »
– Inflation, Shortages, and Social Democracy in Venezuela (Ludwig von Mises Institute, Nov 29, 2013):
The economic turmoil in Venezuela has received increasing international media attention over the past few months. In September, the toilet paper shortage (which followed food shortages and electricity blackouts) resulted in the “temporary occupation” of the Paper Manufacturing Company, as armed troops were sent to ensure the “fair distribution” of available stocks. Similar action occurred a few days ago against electronics stores: President Nicolás Maduro accused electronics vendors of price-gouging, and jailed them with the warning that “this is just the start of what I’m going to do to protect the Venezuelan people.”
Earlier this month, in another attempt to ensure “happiness for all people,” Maduro began to hand out Christmas bonuses, in preparation for the coming elections in December. But political campaigning is not the only reason for the government’s open-handedness. The annual inflation rate in Venezuela has been rapidly rising in recent months, and has now reached a staggering 54 percent (not accounting for possible under-estimations). Although not yet officially in hyperinflation, monetary expansion is pushing Venezuela toward the brink.
In such an environment, paychecks need to be distributed quickly, before prices have time to rise; hence, early bonuses. This kind of policy is nothing new in economic history: Venezuela’s hyperinflationary episode is unfolding in much the same way Germany’s did nearly a century ago.
– Obama’s ‘Socialism’ Experiment Brought Home (ZeroHedge, Nov 8, 2013):
Submitted by Martin Armstrong via Armstrong Economics,
An economics professor at a local college made a statement that he had never failed a single student before, but had recently failed an entire class. That class had insisted that Obama’s socialism worked and that no one would be poor and no one would be rich, a great equalizer.
The professor then said, “OK, we will have an experiment in this class on Obama’s plan”.. All grades will be averaged and everyone will receive the same grade so no one will fail and no one will receive an A…. (substituting grades for dollars – something closer to home and more readily understood by all). Continue reading »
– To Boldly Go Where No Socialist Has Gone Before: Venezuela Creates Ministry Of Supreme Happiness (ZeroHedge, Oct 26, 2013):
If one (such as everyone at the Federal Reserve) thought that the world’s greatest artificial “wealth effect” would also generate the world’s happiest people, one would be dead wrong.
Take Venezuela – Hugo Chavez’ socialist paradise, which was recently inherited by Nicolas Maduro, when he proceeded to not only completely devalue the local currency but to engineer, through such exquisite central-planning that even the Politburo at the Marriner Eccles building is green with envy, the highest returning stock market on earth in 2013. Alas, either the locals are not quite as impressed with the Caracas’ “stock market” YTD return of over 300% (which doesn’t quite cover the loss in purchasing power for what things one can actually purchase in Venezuela)…
… or the chronic toilet paper shortages remind them that the phrase socialist utopia is the world’s greatest oxymoron.
As a result, president Maduro has decided to boldly go where no socialist has gone before and has unveiled a new Vice Ministry of Supreme Social Happiness, whose primary purposes will be to enforce “happiness.” In other words, something along the lines of the beatings will continue until happiness returns…
Americans may have the constitutional right to pursue happiness, but Venezuela now has a formal government agency in charge of enforcing it. President Nicolas Maduro says the new Vice Ministry of Supreme Social Happiness will coordinate all the “mission” programs created by the late President Hugo Chavez to alleviate poverty.
From the article:
“It is like a textbook case in government gone mad.
They have stolen the retirement accounts, devalued the currency, and put capital controls in place. There are trade controls so that people can’t import necessities into the country, but instead, have to manufacture them locally, with the government giving monopolies to their friends. They have price controls, which force the local supermarkets to not raise their prices. This will ultimately lead to shortages. And there are already shortages of certain items. They didn’t like an opposition newspaper, so they nationalized the newsprint manufacturing industry. In fact, just about every single thing that you could do to screw up a country, they have done. It is comical to see the extremes they have gone to. For example, in Argentina, if you publish an inflation statistic that differs from of the official government numbers, you could be hit with a $100,000 fine. I had never heard of this anywhere else – except maybe in communist Russia. They are really completely out of control and the country is spinning off into la-la-land.”
– Argentina’s Economic Collapse (Full Documentary)
– Lessons from Economic Crises in Argentina (Casey Research, June 5, 2013):
Nick Giambruno: Joining me now is David Galland, the managing director of Casey Research. His internationalization story, which involved moving his life and his family from the US to Argentina, was recently featured in Internationalize Your Assets, a free online video from Casey Research. He is perfectly suited to help us better understand some of the important lessons in internationalization that Argentina offers. Welcome, David.
David Galland: Nice to be here.
Nick: First, why don’t you give us a little background about the Argentine people and how they have learned to deal with their government and recurring financial crises? Continue reading »
From the article:
“This is full-blown socialism and I still cannot believe this really happened.”
– Cyprus bailout a major game changer (Trading Floor, By Saxo bank CEO Lars Seier Christensen, March 16, 2013):
It is difficult to describe the weekend bailout package to Cyprus in any other way. The confiscation of 6.75 percent of small depositors’ money and 9.9 percent of big depositors’ funds is without precedence that I can think of in a supposedly civilised and democratic society. But maybe the European Union (EU) is no longer a civilised democracy?
I heard rumours about this when I visited Limassol last week, but dismissed them as completely outlandish. And yet, here we are. The consequences are unpredictable, but we are clearly looking at a significant paradigm shift.
This is a breach of fundamental property rights, dictated to a small country by foreign powers and it must make every bank depositor in Europe shiver. Although the representatives at the bailout press conference tried to present this as a one-off, they were not willing to rule out similar measures elsewhere – not that it would have mattered much as the trust is gone anyway. It is now difficult to expect any kind of limitation to what measures the Troika and EU might take when the crisis really starts to bite.
– Americans Aged 18-29 Have A More Favorable Response To Socialism Than To Capitalism (ZeroHedge, Nov 1, 2012):
In the prior post, we showed a presentation that looked at America from the perspective of a corporation and how it would be completely unsustainable. Luckily, there is little probability that America will ever have anything to do with S-Corp status, and far more likely end up as an agrarian Kolhoz. The reason: based on a Pew survey of America’s youth, or those aged 18-29, more have a positive view response toward Socialism than they do toward Capitalism. We will leave it at that.Socialism: 49% Positive / 43% Negative:
And Capitalism: 46% Positive / 47% Negative:
For your information.
YouTube Added: 11.06.2012
Tags: Abraham Lincoln, Al-Qaeda, Al-Qaida, Alex Jones, Alexis Tsipras, Bailout, Banking, Barack Obama, Bilderberg, Bilderberg 2012, Charles de Gaulle, Communism, Debt, Democrats, Dictatorship, Economy, EU, Europe, Fascism, Fed, Federal Reserve, France, Franklin Delano Roosevelt, Freemasonry, Friedrich August von Hayek, Global News, Gold, Government, History, Joseph Stalin, Karl Marx, Ludwig von Mises, Mao Zedong, Mitt Romney, NATO, New World Order, Obama administration, Peter Thiel, Politics, Rand Paul, Republicans, Rockefeller, Ron Paul, Socialism, Society, Syria, Syriza, U.S.
For your information.
– F.A. Hayek On “The Great Utopia” (ZeroHedge, Jan. 28, 2012):
While it is hardly necessary to provide commentary to one of F.A. Hayek’s timeless observations from his book, The Road To Serfdom, rereading the chapter titled The Great Utopia, in this year of what could possibly be the most important election in the history of the United States, in which the US public will be promised nothing short of utopia by virtually every candidate except the one who really knows that fixing America would require pain and sacrifice, is everyone’s duty. Courtesy of the Center for Economic Liberty we recreate it below in its entirety, and urge all readers, regardless of political persuasion of economic beliefs to consider what F.A.Hayek was saying some 70 years earlier, and how very applicable it is to our current situation.
The Great Utopia
There can be no doubt that most of those in the democracies who demand a central direction of all economic activity still believe that socialism and individual freedom can be combined. Yet socialism was early recognized by many thinkers as the gravest threat to freedom.
“When a country embarks on deficit financing and inflationism you wipe out the middle class and wealth is transferred from the middle class and the poor to the rich.”
– Ron Paul
Obama has tripled the budget deficit. Now you know who Obama is working for!
This elite puppet President is running America into the ground.
Bush was extremely horrible. Obama will be even worse.
Added: November 06, 2009
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From documentary filmmaker William Lewis comes a bone chilling documentary on the spying, tracking and control of the American public.
Source: Google Video
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