“Must Read” Leftovers

Posted March 31, 2015 by austrianaddict
Categories: Leftovers

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How Much Formal Education Do Americans Get, at economicpolicyjournal.com.

It seems that as formal education (brain washing) has increased over the last 70 years, individual liberty has decreased. Correlation or causation?

Congresswomen Eleanor Holmes Norton Attempts To Park Her Car?

1) You can’t be this bad at driving and not know it, can you?  2) How could the guy helping her let this happen? 3) We get the leaders we deserve!


Environmental Guy

Jim Carrey does a caricature of an environmentalist. This is from one of my favorite shows, In Living Color, which aired back in the early 90’s. This is really funny because it is true.


Matt Ridley: “Fossil Fuels Will Save The World, by Mark J. Perry, at CarpeDiemBlog. Wind accounts for 1% of the worlds energy consumption, and solar accounts for less than 1%. Carbon Based fuels aren’t going anywhere until the cost per kilowatt hour of “green energy” is lower than the cost per kilowatt hour for fossil fuels.

Top Ten Reasons Bacon Is Actually HEALTHY For You, at bacontoday.com. Just like Global Warming believers, I was looking to confirm my bias that bacon is good for you, and I found it. I think we can now say that the science is “settled” on bacon being good for you. If you don’t agree with this settled bacon science, you are a bacon denier.



Must Reads For The Week 3/28/15

Posted March 28, 2015 by austrianaddict
Categories: Must Reads For The Week

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The Grand Canyon Filling Up With Fog – And Why – In 60 Seconds.


California Raisin Farmers Get Another Day In Court, by Bonner Cohen, at cfact.org. The Government through the USDA has the authority to confiscate half of farmer’s raisin crop and sell it abroad at a discounted price in order to keep prices in the US high. The fifth amendment of the Constitution states, “…nor shall any person’s private property be taken for public use without just compensation.” As Joseph Sobran stated, “The constitution is no threat to our current form of government”.

Guiding The Blind Through London’s Subway With Estimote Beacons, at wired.com. Blind people are navigated through the subway via spoken instructions through their mobile device. Where is the seeing eye dog lobby complaining about putting these dogs out of work?

Don’t Call An Ambulance, Call Uber, at medium.com. The median response time for an ambulance in NY City is 6.1 minutes. The median response time for an Uber is 2.42 minutes. It is much cheaper to be transported by Uber than an ambulance. Does this outweigh the medical expertise of the EMT’s? People have another choice when deciding how to get to a hospital. I saw this at Carpe Diem Blog.

Oil And Gas Exports – One Policy Change Many Benefits, by Marita Noon, at cfact.org. Did you know that oil produced in the US is not allowed to be exported to foreign markets? Another example of Government interfering in the market.

Venezuela Oil Wealth Doesn’t Stop Gas Shortages, by Jeremy Morgan, at laht.com. Who would have ever thought that Government price controls, labor union disputes, and socialist distribution collectives would lead to shortages of gasoline?

Venezuela: All Day Shopping Trip For 8 Basic Items.

Prices ration scarce resources in a free market. Waiting in line is part of the rationing process in a socialist paradise. People in the former Soviet Union used to say, “if you see a line forming, get in it”. I saw this at Carpe Diem Blog.


EPA Wants To Monitor How Long Hotel Guests Spend In The Shower, Elizabeth Harrington, at freebeacon.com. There is no aspect of your life that Government bureaucrats and politicians won’t try to control. Do you want to bet that someday this will be mandated monitoring equipment on your shower at home? No, that could never happen here.

Michigan Tourism Agency Sees Airbnb As A Threat, at michigancapitalcomfidencial.com. Airbnb is to people looking for lodging, as Uber is to people looking for a ride. And just as the taxi monopoly doesn’t want competition from Uber, so the hotel monopoly doesn’t want competition from Airbnb. This another example of the unstoppable forces of economics catching up to crony capitalists, and helping the consumer through lower prices and more choices. I saw this at Carpe Diem Blog.

The Only Truly Compliant, Submissive Citizen In A Police State Is A Dead One, by John W. Whitehead, at targetliberty.com. Excerpt from the article: “It doesn’t matter where you live, it’s the same scenario being played out over and over again in which government agents, hyped up on their own authority and the power of their uniform, ride roughshod over the rights of the citizenry. In turn, Americans are being brainwashed into believing that anyone who wears a government uniform – soldier, police officer, prison guard – must be obeyed without question.”



Must Reads For The Week 3/21/15

Posted March 21, 2015 by austrianaddict
Categories: Must Reads For The Week

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The pen is mightier than the sword...

 The pen is mightier than the sword… (Photo credit: mbshane)

Mesmerizing 3-D Printer Forms Objects Out Of Ooze, And Fast, by Tim Moynihan, at wired.com. The innovation in the field of 3D printing is amazing. Carbon3D’s Continuous Liquid Interface Production (CLIP) technology is mind-blowing. This technique is mush faster than printing an object layer by layer. The object actually grows out of a tray of resin. Watch the video below.


Solar Industry Fiascos Continue, at instituteforenergyresearch.org. When Governments try to bring a technology forward before it’s time through tax breaks, tax subsidies, and tax payer backed loans, fraud is ultimately the result. When politicians and bureaucrats are handing out a big pile of tax payer money, there will be no shortage of con artists trying to get their hands on it. Government officials make bad venture capitalists, because they never have to pay the cost of their failures. Tax payers do.

Forget Oil, A Water Revolution Is About To Gusher In Texas, by James Stafford, at economicpolicyjournal.com. New desalination technology has lowered the cost of purifying water from $8 per barrel, to $1.50 to $2.00 per barrel.


Oakland’s Minimum Wage Hike Is Crushing Childcare Sector And The Domino Effect, at economicpolicyjournal.com. and Seattle’s New Minimum Wage Law Already Leading To Restaurant Closings And Job Losses, by Mark J. Perry, at aei.org. These two articles show the “unintended” consequences of intervention by politicians and bureaucratic busy bodies.

The Robot Lobby Loves A Minimum Wage Hike, atconsultingbyrpm.com. Consequences from Government intervention may actually be “intended”.

Oil Train Derailments In Canada Expose Folly Of Anti-Pipeline Movement, by Kenneth P. Green, at fraserinstitute.org. Environmentalists who have stopped the installation of oil pipelines, are responsible for more oil spills. Shutting down the pipeline doesn’t stop oil from being transported to refineries. More oil is being transported via rail and trucking which increases the chance of a spill. “Unintended” consequences?

German Court Places Nationwide Ban On Uber, at economicpolicyjournal.com. Government always tries to prop up the status quo. Government by its very nature is always tardy. It will always stand in the way of economic innovation that leads to the advancement of our standard of living. The recent passage of Net Neutrality by the FCC will eventually lead to regulations that will slow economic innovation. “Intended” or “unintended” consequences?

More Than 52,000 Canadians Left The Country For Medical Care In 2014, Bacchus Barua, at fraserinstitute.org. Government always produces a decreased supply of a lower quality product of service. The market produces an increased supply of a higher quality product of service. Obamacare will be no different from other socialist healthcare systems. “Unintended” or “intended” consequences?


Snowiest Place In America Copenhagen NY, at syracuse.com. 21 feet of snow this winter in this upstate NY town. The pictures are amazing.

Students Attack Preacher Holding Anti-Abortion Sign, Cop Says Free Speech Has Limits On Campus, by Robby Soave, at reason.com. The free speech door only swings in the direction of the progressive left.

Dear Gay Community: Your Kids Are Hurting, by Heather Barwick, at thefederalist.com. Heather Barwick’s perspective on being raised by her mom and her moms same-sex partner. This makes you think.

The Difference Between Going To High School In 1970 vs. 2015, Perfectly Expressed, by Steve Straub, at thefederalistpapers.org. Younger people read this to see how much freedom you’ve lost. Older people read this and ask: How did we let this happen?

Nagging Wife Complains About Her Husband, Gets Unexpected Response, at thechive.com. I know this might come as a shock, but men and women think differently.



The ‘Disparate Impact’ Racket by Thomas Sowell

Posted March 18, 2015 by austrianaddict
Categories: Government and Politics

Tags: , , , , , ,

Thomas Sowell

Thomas Sowell takes a look at the two reports about the Ferguson Missouri shooting of Micheal Brown, issued by Eric Holder’s Justice Department, in this article titled, The ‘Disparate Impact’ Racket.

In the article Dr. Sowell talks about the difference between the hard evidence and facts used in the first report that proved Brown was in the wrong, and the “sweeping assumptions” and “misleading statistics” used to condemn the Ferguson Police Department as racist in the second report.

Here are some excerpts from the article.

“According to the second report, law enforcement in Ferguson has a “disparate impact” on blacks and is “motivated” by “discriminatory intent”.”
“Like many other uses of “disparate impact” statistics, the Justice Department’s evidence against the Ferguson police department consists of numbers showing that the percentage of people stopped by police or fined in court is larger than the percentage of blacks in the local population.”

“The implicit assumption is that such statistics about particular outcomes would normally reflect the percentage of people in the population. But, no matter how plausible this might seem on the surface, it is seldom found in real life, and those who use that standard are seldom, if ever, asked to produce hard evidence that it is factually correct, as distinct from politically correct.”

“Blacks are far more statistically “over-represented” among basketball stars in the NBA than among people stopped by police in Ferguson. Hispanics are similarly far more “over-represented” among baseball stars than in the general population. Asian Americans are likewise far more “over-represented” among students at leading engineering schools like M.I.T. and Cal Tech than in the population as a whole.”

“None of this is peculiar to the United States. You can find innumerable examples of such group disparities in countries around the world and throughout recorded history.

“Even with things whose outcomes are not in human hands, “disparate impact” is common. Men are struck by lightning several times as often as women. Most of the tornadoes in the entire world occur in the middle of the United States.”

“Since the population of Ferguson is 67 percent black, the greatest possible “over-representation” of blacks among those stopped by police or fined by courts is 50 percent. That would not make the top 100 disparities in the United States or the top 1,000 in the world.


Here is a video of a younger Dr. Sowell addressing statistical disparities with host William F. Buckley on Firing Line.

Bob Barker vs. Adam Sandler: Rounds I and II

Posted March 16, 2015 by austrianaddict
Categories: Miscellaneous

Tags: , , ,


I came across round II of this epic battle a week ago. I went back and watched the original fight scene from the movie Happy Gilmore, which I hadn’t seen in years. Usually sequels are never better than the original, and as much as I loved the original, in this case round II might be better. You be the judge.



BEST LINE, Bob Barker – “Don’t you understand, they’re applauding because your dead“.

Must Reads For The Week 3/14/15

Posted March 13, 2015 by austrianaddict
Categories: Must Reads For The Week

Tags: , , , , , , , , , , , , , , , , , , , , , ,
The pen is mightier than the sword...

 The pen is mightier than the sword… (Photo credit: mbshane)

Obama Wants New Regulations That Will Control And Limit How You Can You Invest Your IRA and 401(k) Money, at economicpolicyjournal.com. Does adding more rules and red tape help you, or is it just a way to increase  the power of Government?

We Take Your Class, at wetakeyourclass.com. If you decide that the cost of spending your time taking your online class of doing home work is greater than what you could be doing with your time, go to We Take Your Class. I would have gotten better grades if I would have gone to school in today’s tech world.

Next Mega-Bailout: White House Studying “New Bankruptcy Options” For Student-Loan Borrowers, at zerohedge.com. The Government turns them into student loan debt serfs and then comes to the rescue by forgiving the debt. Just another way of getting the next generation of individuals thinking that everything comes from benevolent Government. The tax payer will be on the hook for this debt.

Planet Fitness Bans Member Who Complained About Transgendered Woman In Locker Room, at wftv.com. If you have an xx sex chromosome you’re a female, and if you have an xy sex chromosome you’re a male. How you feel about your gender doesn’t change your sex.

Cultural Marxism: The Future Of Girlification, by John Derbyshire, at takimag.com. The difference between the sexes will always exist. It can’t be wished away by Cultural Marxists who are trying to create a fake world that can’t exist in reality.

ATF Shelves Controversial Bullet Ban Proposial, at foxnews.com. The people have pushed back and temporarily stopped this ban. The administration will attempt this again, stay alert.

How Much Money Do You Need To Buy A Home In Your City, at economicpolicyjournal.com. Here is the salary you need to make to afford the principle, interest, taxes, and insurance on a median priced home in certain cities across the US. Look at California, especially San Francisco.

California Dreaming Of Lower Gas Prices, by Gregg Laskoski, at usnews.com. Gas Prices In California are more than a dollar per gallon higher than the rest of the country. Why? State imposed regulations and taxes have helped boost the price. With the price of housing and gas, just to name a few, who can afford to live in California?

Stingray’ Lets Police Spy On Your Cell Phone, by Sam Alder Bell, at usnews.com. Another Government violation of the fourth amendment. But as Joseph Sobran stated so well, “The constitution is no threat to our current form of Government“.

How To Tell Someone’s Age When All You Know Is His Age, at economicpolicyjournal.com. There aren’t many Mabels, Gertrudes, Elmers or Clarences alive today. It’s interesting to see how the popularity of certain names has changed over the years.

Why Low Oil Prices Will Not Harm Sales Of Electric Cars, at theeconomist.com. Owners of electric cars use them as a badge of honor to show they are greener than you. Since value is subjective, and most people don’t value being green higher than the price of an electric car, electric car sales aren’t going up. The price of the car has to decrease much lower before most people would consider buying one. The lower price of oil doesn’t compare to the high cost of the electric car when it comes to purchasing one.

Economic Delusions, Political Demagoguery, and Political Deceptions, by Richard Ebeling, at epictimes.com. This is our heavy lifting for the week. Just get started and don’t stop until you finish the article, you will be glad you did.




Real Savings = True Credit. Printed Savings = False Credit

Posted March 12, 2015 by austrianaddict
Categories: Econ. 101

Tags: , , , , , , , ,

In this article titled, Understanding True Credit And False Credit, by Frank Shostak at mises.org, explains the difference between real credit that is backed by savings from real production, and counterfeit credit that is created by the printing press.

Don’t think of money when we talk in terms of real credit, think in terms of real things that are first produced, then saved and finally loaned as credit. Money is how we facilitate the exchange of goods and services either in the present or at some time in the future because of saving. Credit is a part of this future exchange.

Here are some excerpts from the article.

“Banks cannot expand true credit as such. All that they can do in reality is to facilitate the transfer of a given pool of savings from savers (i.e., those lending to the bank) to borrowers.

“Consider the case of a baker who bakes ten loaves of bread. Out of his stock of real wealth (ten loaves of bread), the baker consumes two loaves and saves eight. He lends his eight remaining loaves to the shoemaker in return for a pair of shoes in one-week’s time. Note that credit here is the transfer of ”real stuff,” i.e., eight saved loaves of bread from the baker to the shoemaker in exchange for a future pair of shoes….Note that the saved loaves of bread provide support to the shoemaker. That is, the bread sustains the shoemaker while he is busy making shoes. This means that credit, by sustaining the shoemaker, gives rise to the production of shoes and therefore to the formation of more real wealth. This is the path to real economic growth.

“The introduction of money does not alter the essence of what credit is. Instead of lending his eight loaves of bread to the shoemaker, the baker can now exchange his saved eight loaves of bread for eight dollars and then lend them to the shoemaker….Money fulfills the role of a medium of exchange. Thus, when the baker exchanges his eight loaves for eight dollars he retains his real savings, so to speak, by means of the eight dollars. The money in his possession will enable him, when he deems it necessary, to reclaim his eight loaves of bread or to secure any other goods and services.”

“The existence of banks does not alter the essence of credit. Instead of the baker lending his money directly to the shoemaker, the baker lends his money to the bank, which in turn lends it to the shoemaker. In the process the baker earns interest for his loan, while the bank earns a commission for facilitating the transfer of money between the baker and the shoemaker….Despite the apparent complexity that the banking system introduces, the essence of credit remains the transfer of saved real stuff from lender to borrower.

“Trouble emerges when instead of lending fully backed money, a bank engages in issuing empty money (fractional reserve banking) that is backed by nothing….When unbacked money is created, it masquerades as genuine money that is supposedly supported by real stuff. In reality however, nothing has been saved. So when such money is issued, it cannot help the shoemaker since the pieces of empty paper cannot support him in producing shoes — what he needs instead is bread. Since the printed money masquerades as proper money it can be used to divert bread from some other activities and thereby weaken those activities. This is what the diversion of real wealth by means of money out of “thin air” is all about.”

“We can thus conclude that as long as the increase in lending is fully backed by real savings it must be regarded as good news since it promotes the formation of real wealth. False credit, which is generated out of “thin air,” is bad news since credit which is unbacked by real savings is an agent of economic destruction.

Here is a previous post titled, Printed Money Doesn’t Represent More Savings, in which we talk about how electronically printing counterfeit money doesn’t produce any good or service, it is just the creation of a piece of paper that allows who ever receives it the legal right to demand someones production.

Related ArticleWhat Comes First, Production Or Consumption, at austrianaddict.com.

Related ArticleCapital Consumption aka Eating Our Seed Corn, at austrianaddict.com.

Related ArticleThe Role Of Interest Rates In A Market Economy, at austrianaddict.com.


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