Must Reads For The Week 9/24/16

Posted September 24, 2016 by austrianaddict
Categories: Must Reads For The Week

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San Francisco State Builds Segregated Dorms Where African-Americans Can Safely Live, at zerohedge.com. I had friends tell me that Obama getting elected would make race relations better. I told them it would get worse because race hustlers like Obama need the issue of race to keep power. They don’t want the issue to get better.

Gov. Jerry Brown Signs Law Regulating Cow Farts, at sacramento.cbslocal.com. You can’t make this s#!+ up! Would you agree that Government is too big if they are sticking their nose into cow farts?

Internal Email Shows Fed Immigration Bosses Pushing To Swear In New Citizens ‘Due To Election’, at tammybruce.com. Another example of corruption in government. Bureaucrats are working overtime to swear in new citizens before the Nov. election. Do you think these immigrants are going to vote for the Democrats? In an unrelated story, Number Of Refugees Nancy Pelosi’s District Has Taken In: Zero, at tammybruce.com. Since Pelosi’s district doesn’t need any more democrat votes, she wants you to,  do as I say, not as I do.

Hillary Clinton’s “Exit Tax” Is An Unseemly Example Of Banana Republic Economics, at cato.org. Hillary wants to tax companies who move their business out of the country. Hey Hillary, it is not the Governments property, it is the private property of the business. To be fair Trump said he won’t let businesses leave the country. Two candidates who don’t understand the Constitutional powers of government and the Constitutional rights of the people.

Indoctrination: 35 Years Of The U.S. Department Of Education, by Carol Pettegrew, at mises.org. Let’s get rid of the Department of Education. Excerpt from the article: “Students in institutional schools are measured repeatedly, however. A Typical student takes 112 mandated standardized tests between pre-K classes and 12th grade; by contrast, most countries that outperform the U.S. on international exams test students three times during their entire school careers. In spite so much testing and measuring, the standards are being manipulated to enhance the illusion of improving student performance.”

IT’S DONE: Mitch McConnell Surrenders, at economicpolicyjournal.com. This is a perfect example of why Trump won the Republican Presidential nomination. The Republican Establishment won’t fight for smaller government. People are fed up with Republicans not standing up to the President. The establishment should blame themselves and no one else.

ECONOMICS

Dallas Police Pension On Verge Of Collapse As Record Number Of Cops Seek Full Withdrawal, at zerohedge.com. Many of these public pension plans are underfunded to the point that they are Ponzi schemes, just like social security. Government can’t implement their utopian ideas because economic forces constrain them.

Deja Vu: Fannie and Freddie Lower Lending Standards, by Tho Bishop, at mises.org. Government proving its stupidity. Excerpt from the article: “The companies responsible for mortgage origination will not be the ones holding the mortgages, Fannie Mae and Freddie Mac will. It’s always easier to make loans when you know the taxpayers are the ones that will be holding the risk……..the only things government is worse at than pricing risk, is learning from past mistakes.” This is a smaller version of the 08 housing crisis all over again.

Patrick Barron, An Austrian Economist: There Is No Such Thing As A Negative Interest Rate, at patrickbarron.blogspot.com. Excerpt from the article: “What the mainstream media and the public call a “Negative interest rate” is an abuse of language. Time preference can never be negative, because that would require a total change in human nature. People will always want something sooner rather than later. It is Hard to save and delay consumption. People have to be disciplined to save and delay gratification. The idea of a “negative interest rate” is an attempt to turn reality on its head. It is another tactic in the Keynesian attempt to refute Say’s Law: i.e., that production must precede consumption and that what one produces becomes the means by which he consumes. One can neither consume nor sell something that was never produced, which is the absurdity that is implied by a “negative interest rate”.

Infrastructure Spending Does Not “Grow The Economy”, by Patrick Trombly, at mises.org. Excerpt from the article: “Ultimately, spending on infrastructure no more “creates wealth” than any other kind of government spending. Like all other government spending, it’s a matter of taking money from some people to give to others. The money taken from the taxpayers must be subtracted from the money spent, and we’re left with no net gain.”

Oh What A Twisted Web We Weave, When First We Practice To Deceive: Andy Griffith.

Dear FBI, This Is Intent: Hillary’s Oh Shit Guy Sought Reddit Advice On How To “Strip VIP EMails“, at zerohedge.com. If you didn’t think so before, this should make it very clear that the FBI is not an independent agency searching for the truth. It is a political agency. This is the breakdown of the rule of law. Does anyone believe the FBI is an honest broker? The law doesn’t apply to our ruling aristocracy.

Former Haitian Senate President Charges Clinton Foundation With Massive Fraud; at economicpolicyjournal.com. The breakdown of the rule of law. The Clinton money laundering machine.

Trey Gowdy: Did The FBI Grant Immunity For Destroying Subpoenaed Records And EMails, at youtube.com.

 

Drifting Towards Fascism

Posted September 20, 2016 by austrianaddict
Categories: Government and Politics

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man drifting in a boat

First let’s define Fascism so we can begin at the same starting point. Fascism is an economic system where the state doesn’t own the means of production, but the state makes the rules that producers and consumers have to follow. There is a bureaucratic layer between businesses and politicians which plans the economy. It is crony capitalism on steroids.

Fascism places politicians and bureaucrats as the ultimate rulers aka decision makers. The individual has no rights or liberty except what the rulers say they have. Order comes from the state, (top down) not from the individual, (spontaneous order).

I saw a great chart (below) showing America’s drift toward Fascism, in an article titled, The Road To Fascism In Just Two Charts, at bawerk.net. I have always thought economic systems fit on a line where at one end no government exists, and at the opposite end there is total government control. Where an economic system is placed on this line depends on how much government intervention exists, or put another way, how little governmental intervention exists.

WHAT IS AN ECONOMY? WHAT IS SOCIAL FREEDOM?

An economy is what results when each individual is free to decide what to produce, consume, exchange and save in a world of scarce resources which have alternative uses. Simply put, you own what you’ve produced or what you’ve received in exchange for your production. It is your property and you have a right to do with it what you wish.

Production is the creation of wealth. Consumption is the destruction of wealth. Exchange is the increase of wealth as both parties place a higher value on what they received than what they’ve given up. Saving is the preference of consumption at some point in the future to consumption in the present. Savings is the basis for capital formation. Capital formation is what increases productivity. Increased productivity is the creation of larger amounts of wealth.

Each individuals decision on what and how much he will produce, consume, exchange and save according to what he  subjectively values in a world of scarcity is the essence of freedom.

In order to have economic freedom you have to have social freedom and in order to have social freedom you have to have economic freedom. In other words, economic freedom and social freedom are different sides of the same coin. Individuals are free to act. Each individual is responsible for the consequences of his actions if they bring harm to others or himself.

I have a quote by F. A. Hayek at the top of my web site. It is my favorite quote because it sums up the choice individuals have faced since the beginning of time:

F. A. HAYEK: “THE COORDINATION OF MENS ACTIVITIES THROUGH CENTRAL PLANNING OR THROUGH VOLUNTARY COOPERATION ARE ROADS GOING IN VERY DIFFERENT DIRECTIONS, THE FIRST TO SERFDOM AND POVERTY THE SECOND TO FREEDOM AND PLENTY.

Let’s take a look at the chart and see what it reveals.

true-political-axis

Zero Government intervention into the economy starts at the bottom left of the chart and moves upward and to the right as Government intervention starts to increase. Zero Social Freedom starts at the top right of the chart and moves downward and to the left as the level of Social Freedom starts to increase.

Communism, socialism, fascism and democratic socialism are on the top right of this chart. They are economic and political systems that strangle individual liberty. Their very nature means intervention into, or control of, what is produced, consumed, exchanged and saved.

Anarcho capitalism, free market capitalism, classical liberalism and our America constitutional founding are on  the lower left of the chart. They are economic and political systems that strangle Government and allow individuals the freedom to produce, consume, exchange, and save as they see fit.

What exists today is the middle ground of crony capitalism, crony socialism and other forms of government interventionism. This is the utopian middle ground that elites think mixes the best parts of both ends of the chart. They know that free market capitalism produces great amounts of wealth as seen by our standard of living. But the elites don’t like the way the wealth is “distributed” and want to use the force of government to make this distribution  “fairer” according to their idea of “fair”.

The elites attempt to redistribute wealth differently than it would exist in the free market, creates incentives that ultimately decreases the wealth that is being produced. It divides us into groups that can be pitted against each other by political opportunists.

These statements by Ludwig von Mises tell us all we need to know about the above chart:

The issue is always the same: the government or the market. There is no third solution.”

The middle-of-the-road policy is not an economic system that can last. It is a method for the realization of socialism by installments.”

Anti capitalistic policies sabotage the operation of the capitalist system of the market economy. The failure of interventionism does not demonstrate the necessity of adopting socialism. It merely exposes the futility of interventionism. All those evils which the self-styled “progressives” interpret as evidence of the failure off capitalism are the outcome of their allegedly beneficial interference with the market.”

CONCLUSION

We are in the chaotic middle. Our choice is to move towards freedom and free markets. It is going to take a lot of time and effort to educate enough people in order to tip the scales toward freedom. Is the cost too high? It’s your decision.

 

Related ArticleCapitalism vs. Crony Capitalism, at austrianaddict.com.

Related ArticleSocialism Sounds Great, at austrianaddict.com.

Related ArticleWhat Creates Wealth? Freedom, at austrtianaddict.com.

Related ArticleWe Can’t Recreate The Garden Of Eden, at austrianaddict.com.

 

Must Reads For The Week 9/17/16

Posted September 17, 2016 by austrianaddict
Categories: Must Reads For The Week

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Clinton And Trump (Clump?) vs. Tax Payers And Free Enterprise, by Dan Mitchell, at freedomandprosperity.org. Big Government wins no matter who wins the election. Your choice is between Bud and Bud Lite.

Racial Issues, by Thomas Sowell, at jewishworldreview.com. Thomas Sowell asks, do black lives matter when it comes to education.

State Dept. Gave Millions To Foundation Led By John Kerry’s Daughter, Bre Payton, thefederalist.com. This is another example of the politically connected getting access to tax payers money laundered through the government. Didn’t John Kerry park his Yacht in Rhode Island so he didn’t have to pay Massachusetts taxes?

Markets In Everything: Exotic Car Registration In Montana, by Mark J. Perry, at carpediemblog. I love it when people figure out ways to get around the edicts of Government.

Colorado’s Anti-Fracking Crack-Up, at michellemalkin.com. Two anti-fracking initiatives don’t get enough signatures to get on the ballot in  Colorado. People are starting to understand that fracking is good.

Americas’ Trust In  Mass Media Plunges To Record Low, at zerohedge.com. Is anyone shocked by this? The number will plunge more as they continue to drive the getaway car for Hillary.

The Heroic Central Banker Who Has Rejected Keynesianism, at economicpolicyjournal.com. If you have to have a central bank, Russia’s Central Banker Elvira Nabiullina is who you want to be in charge. Excerpt from the article: “Nabiullina told a banking conference in the Black Sea resort city of Sochi today. Keeping real interest rates stable in positive territory is an “important condition for healthy economic growth,” she said. The main drivers of growth should be “fixed investment, structural changes in the economy and efficiency increases,” Mabiullina said. “It’s necessary to safeguard household deposits against inflationary depreciation to support a high level of savings and to create the conditions to transform them into investment.”  There is no central banker in the world who talks like this. Why can’t we trade Janet Yellen for Elvira?

Prices controls Work No Better In America Than In Venezuela, by Andrew Quinlan, at freedonandprosperity.org. Price controls don’t work. Anyone who lived through Nixon’s price controls understands this.

Harvard Crushes The “Obama Recovery” Farce With Nine Simple Charts, zerohedge.com. Even Harvard knows the Obama recovery is a media creation that has no basis in reality.

Where’s The Demand? Oil Prices Drop Again, by Ryan McMaken, at mises.org. As the price of oil drops you would think that the demand would increase at the lower price. But that is not the case. Does this show how weak our economy actually is? I try to answer this question in this article titled, Gasoline Consumption Is Down, Why?

The Fed Plans For The Next Crisis, by Ron Paul, at mises.org. The Fed is on a quixotic adventure that they can’t win.

 

THIS CARTOON IS THE ELECTION IN A NUT SHELL

Political Cartoons by Steve Kelley

Must Read “Leftovers”

Posted September 14, 2016 by austrianaddict
Categories: Leftovers

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ARE CENTRAL BANK SCHEMES COMING TO AN END?

Investors Are Thwarting The Bank Of England’s Latest QE Scheme, by George Pickering, at mises.org. What is the next step for central planners when people won’t go along with their original plans?

The Bank Of Japan Has Nationalized The Japanese Stock Market, at zerohedge.com. The Bank of Japan is using printed money to prop up the Japanese Stock market. Nothing is real.

Bullard’s Bubble Warning: “I could See This Getting Away From Us”, at zerogedge.com. St. Louis Fed President James Bullard said the unintended consequences of Fed policy could be asset bubbles. I contend that asset bubbles are the intended consequences of Fed money printing and low-interest rates.

Fed Vice-Chairman Admits Fed Sponsors Wealth Inequality, at zerohedge.com. Stanley Fisher admits that negative interest rates hurt savers although negative rates seem to work in today’s world. Hey Stan, negative interest rates seem to work, in the world you created. That’s because they are the nest step after a decade of zero interest rates. The Fed’s  ZIRP policy helps banks and the equity markets at the expense of the rest of us.

The Importance Of Interest Rates, by Emile Woolf, at misesca. Interest rates reveal the time preference of individuals. This means people are consuming less now and saving more for future consumption, or they are consuming more now and saving less for future consumption. This “less” that individuals are willing to save or consume are real resources. Real resources are scarce. They have to be rationed between present consumption and future consumption. Interest rates coordinate what will be produced now for present consumption and what will be saved now for the production of future consumption. Any attempt by the Fed to artificially set interest rates sends false signals through the production process about the availability or unavailability of scarce resources. Present and future production is no longer coordinated according to the reality of individuals time preferences. It is miscoordinated by edicts of the Fed. Can the members of the fed possibly know the subjective and ever-changing time preferences of hundreds of millions of individuals in the market? Free market interest rates are the only way this time preference knowledge can be sent through the market to work its magic of coordination. The hubris of Fed members isn’t a replacement for this knowledge.

The Fed Launches New Facebook Page, by Ryan McMaken, at mises.org. Now that people are starting to realize the Feds policies aren’t working, the Fed is going to spout propaganda on their new Facebook page. Although this experiment in social media may be backfiring looking at some of the comments about their posts. Here is an example from the article: “Can you guys please help me get some of the QE? I’m trying to buy 16 cars, 4 houses, 2 jets and a yacht,” one commenter wrote. “I swear it will stimulate the economy. I’ll spend it all and cycle it back. I know velocity needs to pick up so I’ll  make sure to pay lots of models to live in my houses and travel with me. Thanks Fed! You are such a moral and upstanding institution!” They’ve made a living working in secrecy, they should stick to it.

Must Reads For The Week 9/10/16

Posted September 9, 2016 by austrianaddict
Categories: Must Reads For The Week

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Gun Control Lessons For Morons, by Daniel Mitchell, at freedomandprosperity.org. Concealed-carry permit holders are a more law-abiding demographic group than police officers.

Booby Bra Is A Great Option For Packing Heat On A Run, By Krystle Shoonveld, at thefederalist.org. Women were getting attacked while they were out jogging, so an enterprising lady came up with a bra that can not only hold a weapon securely, it can also hold in place what it is supposed to hold in place with no spillage. What a great country.

Pope Says Global Warming Is A ‘Sin Against Creation‘, at dailycaller.com. The Pope should stick to his ministry, which is mercy and reconciliation. If he is truly worried about CO2 emissions, he should stop exhaling.

Obama Delivers On Vow To Bankrupt Coal Industry, at zerohedge.com. There has been a 42% decline in coal mining employees since 2012. Mission accomplished. For the record, some coal-burning power plants in the US have changed over to natural gas because fracking has made natural gas a more economical way to produce electricity.

Hillary Is Either A Liar Or She Is Grossly Incompetent, at zerohedge.com. The more information that comes out about her Email server, the more trouble Hillary has keeping straight her previous attempts at obfuscation (lying). Her problem is she looks like a young child trying to lie when caught doing something they weren’t supposed to do. Everyone can see this because at one time we were all kids who at one time tried to lie our way out of getting in trouble.

Clinton Foundation Is Charity Fraud Of Epic Proportions, at zerohedge.com. Excerpt from the article: “…the Clinton family’s mega-charity took in more than $140 million in grants and pledges in 2013 but spent just $9 million on direct aid. That’s because the organization spent the vast bulk of its windfall on “administration, travel, salaries and bonuses”, with the fattest payouts going to family friends.”

Australia’s Solution To California’s Water Woes: Markets, at independent.org. Edicts form politicians and Government bureaucrats don’t provide solutions. Government edicts just get in the way of the trade offs made in the market.

Female Student Admits To Incredible Lie That Got Auburn Football Player Kicked Off Team, by Robby Soave, at reason.com. This was a legal matter that should have been turned over to police. College officials are not qualified to do investigative police work. Oh by the way. Auburn’s title IX coordinator, Kelly Taylor, wanted to proceed even after the student told her she lied about the incident. Don’t let the facts get in the way of an agenda!

The One Trillion Dollar Consumer Loan Auto Bubble Is About To Burst, at zerohedge.com. Loaning money to people to buy cars who can’t afford the loan leads to disaster. Remember the sub-prime housing loan bubble?

Man Allows Himself To Get Caught Robbing Bank So He Can Get Away From His Wife, by Ashley May, at usatoday.com. When I first heard this story, I thought they were talking about Bill Clinton.

How To Pick The Fastest Line At The Supermarket, by Chris Mele, at economicpolicyjournal.com. This is the most important article, at least for me. I pick the wrong line everywhere I go. Two weeks ago I was in line at the drive through window at a burger joint. The car in front of me stalled and the driver couldn’t get it started. I helped push the car out of the way while the drivers wife walked through the drive in window. That is typical of my luck. There are some good suggestions in this article.

 

CARTOONS from theburningplatform.com.

Political Cartoons by Nate Beeler

Political Cartoons by Bob Gorrell

Political Cartoons by Nate Beeler

Prager University: Every High School Principal Should Say This

Posted September 7, 2016 by austrianaddict
Categories: Government and Politics, Miscellaneous

Tags: , , ,

 

This video from Prager University titled: Every High School Principle Should Say This, would be a great start in reeducating students into understanding that they are an individual and not member of a group.

Unfortunately there are not many, if any, principles who would give a speech like this in today’s PC world. So it is up to us to spread the word.

If you are offended by this video, look in the mirror.

 

THE LESSON FORM THE VIDEO

Our Constitution was set up to protect Individuals from the force of government. The Constitution lists the specific powers government can exercise, but the rights of the individual are not limited to the ones listed in the Bill of Rights.

The Constitution draws a battle line between Individual sovereignty and government force. The Individual has rights, groups do not. One of the reason for the political turmoil that exists in America today is we have been duped into believing that you have rights as a member of a group and not as an individual.

Politicians have effectively split us up into various groups and made each group an enemy of the other. This allows them to act as if they are above the fray, riding in on their white horse to provide solutions to the friction that they fomented.

You have to understand your real enemy are politicians and bureaucrats using the force of government to take away your individual rights. This makes sense only if you think of yourself as an individual instead of a member of a group.

 

Related ArticleIndividual Liberty Is The Least Contentious Way Of Settling Differences, at austrianaddict.com.

Related ArticleWalter E. Williams Talks About Individual Liberty, at austrianaddict.com.

Related ArticleJuly 4th: What Does Independence Mean? at austrianaddict.com.

Must Reads For The Week 9/3/16

Posted September 3, 2016 by austrianaddict
Categories: Must Reads For The Week

Tags: , , , , , , , , , , , , , , , , , , ,

ECONOMICS

Hurricane: Florida AG To Prosecute “Price Gougers”, by Tho Bishop, at mises.org. Increased demand for scarce resources means prices will go up. Higher prices tell consumers to demand less, and producers to supply more. Scarce resources will be sent to Florida where they are needed the most because of the high prices. And people in Florida will only purchase what they need of these scarce resources at these higher prices. Prices ration scarce resources.

DC’s Minimum Wage Hike Results In 1400 Restaurant Jobs Lost In 1st 6 Months of 2016 – Biggest Drop In 15 Years, at ecocnomicpolicyjournal.com. How many times does the disastrous  results of increasing the minimum wage have to be seen before people and politicians understand that wages are set by supply and demand? Paying labor more than what it produces means that labor will eventually be priced out of the market.

Free Trade Wins: The TTIP Is In Trouble, by Mark Thornton, at mises.org. Hillary and Trump don’t understand that trade deals made by politicians only benefit crony corporations at the expense of consumers. Here is a great trade deal: Individuals in our country can trade with individuals in other countries without interference from Government rules and regulations.

The Right Lessons From Obamacare’s Meltdown, by Ron Paul, at mises.org. Don’t blame the free market for the results of Government intervention.

As Predicted, Obamacare Is Absolutely Killing The Middle Class, at zerohedge.com. We were promised that health insurance payments would decrease, but they have exploded. These higher premiums hurt the middle class the most. Wealthy people can afford the increase, and poor people will get taken care of with our tax dollars.

Venezuela’s Latest Response To Food Shortages: Ban Lines Outside Bakeries, at zerohedge.com. The old saying in the former Soviet Union was, “If you see a line starting to form, get in it!” Lines are a way to ration scarce resources in socialist economies. In Venezuela The National Superintendency of Fair Prices (that sounds like wonderful agency) is going to fine bakeries that let lines stretch out their front doors. They say the lines are forming because their political opposition is trying to win the propaganda war. Propaganda doesn’t keep food off of store shelves or stock the shelves with food. Individuals cooperating in free markets bring food to store shelves.

The Happy Reality That Sports Stars Get Paid More Than School Teachers, at economicpolicyjournal.com. You pay a higher price for scarce talent. Excerpt from the article: “So let me ask: would you prefer to live in a world in which the number of people who can skillfully fight fires and teach children is large but the number of people who can skillfully play sports and act is very tiny, or in a world in which the number of people who can skillfully fight fires and teach children is very tiny but the number of people who can skillfully play sports and act is large?

Demographic HomeMageddon Underway….Will Last Until 2035, at zerohedge.com. Free markets will deal with the demographic shift in the population of the US. Government intervention into the economic realities created by demographics, will turn these realities into real problems.

OUR RULING ARISTOCRACY SHOWS DISDAIN FOR THE BENIGHTED MASSES

The Dog Ate My Homework Excuse.

Hillary Told FBI She Thought Classified “C” Markings Were Just “Alphabetical Paragraph” Markings, at targetliberty.com. This from the smartest women in the world? This is a whopper of a lie.

FBI Reveals Hillary Could Not Recall Briefings Due To Concussion,Clot, at zerohedge.com. I’ve learned from the Clintons to never say ‘you can’t remember’. Always say ‘you can’t recall’. I guess saying ‘you can’t recall’ is a way to legally get around perjury?

Yeah That’s Really Funny.

Mark Toner, deputy spokesman for the State Department, as well as the reporters at the press conference show who they really are in this exchange. Someone should have called them out on this. You didn’t get away with this s#!+ where I grew up.