Why Doesn’t The “King” Want His Kingdom To Be Prosperous?

Posted December 21, 2012 by austrianaddict
Categories: Government and Politics

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Keystone XL demonstration, White House,8-23-20...

Keystone XL demonstration, White House,8-23-2011 Photo Credit: Josh Lopez (Photo credit: Wikipedia)

This article, “Robber Barony: Obama Energy Policy By Another Name” by Paul Driessen at Masterresource.com. is a must read. After you read it you will ask the question, why would the President want the country to decline economically? This article talks about how the energy boom in the U.S. is poised to lead the economy out of the doldrums, if the administration will get out-of-the-way and let it happen. This should be what everyone is talking about instead of the political theater known as the “fiscal cliff“.

How can an administration be taken seriously about wanting to improve the economy, when they are going to confiscate Read the rest of this post »

Government Investment? Or Government Waste?

Posted December 20, 2012 by austrianaddict
Categories: Econ. 101, Government and Politics

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When you here the warning, “don’t try this at home”, it means leave it to the experts because you might get hurt. This has never been more true than when it comes to Government “investment”, except the difference is the politician, who “try’s this at home” profits politically, and the taxpayers are the people who get hurt. The politician making the investment decisions doesn’t suffer any of the consequences for his failures. If you could “invest” money that wasn’t your own, and do it with no repercussions for failure, and your whole life was incentivized and constrained by politics, wouldn’t you invest in something that produces Read the rest of this post »

“You Never Let A Serious Crisis Go To Waste.”

Posted December 18, 2012 by austrianaddict
Categories: Government and Politics, Hall of Fame

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English: President Obama with White House Chie...

English: President Obama with White House Chief of staff Rahm Emanuel in the parlor of Air Force One (Photo credit: Wikipedia)

The full quote, “You never let a serious crisis go to waste. And what I mean by that it’s an opprotunity to do things you think you could not do before.” is by Rahm Emanuel, former White House Chief of Staff under President Obama. This reflects the thinking of Saul Alinsky, who wrote “Rules for Radicals.” “Rules for Radicals” is the default position the President, and Emanuel operate under. If you understand this, it will be easier to analyse everything they say and do.

Here is the template. 1) Use a tragedy as a crisis, or create a crisis where none exists. 2) Paint the crisis with as much emotion as possible, and throw logical analysis out the window. 3) Propose the one and only solution to the problem, which just happens to coincide with what you’ve wanted to implement for many years. 4) Paint anyone who opposes your one and only solution as evil, uncaring, not smart enough to understand the nuanced brilliance of your solution, or in the pockets of …. you pick the evil entity. 5) Force the solution on the people by any means, whether legislatively, by executive order, or through the legal system. 6) When the unintended consequences of your solution rear their ugly head, use them as a reason for more brilliant solutions to the made up crises . Read the rest of this post »

Fiscal Cliff or Political Theater?

Posted December 17, 2012 by austrianaddict
Categories: Government and Politics

Tags: , , , ,
Tax

Tax (Photo credit: ( 2012)

“All the world is a stage and all the men and  women merely players:….Shakespeare.    Remember this quote when analysing anything involving   politics.

Human action is purposeful behavior. Action is not simply verbal preference, it is the individual choosing and acting to reach a particular end. What is the particular end the actors on the “fiscal cliff” stage are trying to attain? If you say making themselves and their political party look good, and making the opposing politicians and party look bad, you have a keener insight into the plot of this play than 90% of the audience these political performers are playing to. This is all about assigning blame for the economic problem we are in, and trying to maneuver into position to take credit for any upturn in the economy, or assign more blame to the other party if it gets worse. What you are watching is not economic reality but political theater. You have to dig below the political surface and look at the underlying economic realities, in order Read the rest of this post »

At What Point Will It Be Impossible To Fund The Federal Government’s Debt .

Posted December 13, 2012 by austrianaddict
Categories: Econ. 201, Government and Politics

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Payday Loans Neon Sign

Payday Loans Neon Sign (Photo credit: rinkjustice)

These three articles show the future of our Government debt bomb. “Presenting The Fund-Tastic Four”, at zerohedge.com, “Fed Seen As Pumping Up Assets to $4 Trillion In New Buying”, at Bloomberg Businessweek, and “Only In California: School Owes $1 Billion On A $100 Million ‘PayDay’ Loan”, also at zerohedge.com. Use these as a crystal ball to see the direction of the Government’s future ability to fund itself.

The funding of Government, the Governments attempts to stimulate the economy through spending, and the Federal Reserve’s attempt to steer the economy by counterfeiting and injecting the printed money into the economy through their “open market operations”, has brought us to a level of debt that Read the rest of this post »

Diffused Costs And Concentrated Benefits, Are Why Politicians Will Never Cut Spending.

Posted December 11, 2012 by austrianaddict
Categories: Econ. 101, Government and Politics

Tags: , , , , ,

This is a short video from learnliberty.org about the uphill battle we have in trying to roll back the size of Government, and hold on to our individual liberty. Any growth of Government means a reciprocal loss in individual freedom, why, because the decision of the individual is usurped by Government bureaucrats who are back stopped by the coercive power of the state.

The growth of Government and the corresponding loss of individual liberty has happened incrementally over the Read the rest of this post »

Spontaneous Order Utilizes More Knowledge Than Central Planning Could Ever Hope To Utilize.

Posted December 10, 2012 by austrianaddict
Categories: Econ. 101

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This video from http://www.learnliberty.org talks about spontaneous ordering processes.

This quote by Thomas Sowell, “The abstract existence of knowledge means nothing unless it is applied at the point of decision or action“, explains why the spontaneous order of the market, efficiently produces more output than central planners can produce in a statist economy. The market economy brings abstract knowledge and decision makers together more effectively than central planning could ever hope to do.

Abstract knowledge can’t be known by one individual or board of individuals, this fact alone dooms central planning to failure. Even if planners knew all of the abstract knowledge of every individual , they wouldn’t know the exact time or place to apply this knowledge in the decision-making process. Voluntary cooperation through the free market process is Read the rest of this post »

Walter E. Williams Speaks About The Economics Of Liberty.

Posted December 7, 2012 by austrianaddict
Categories: Econ. 101

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This is a video by one of the great communicators on liberty and economics, Dr. Walter E. Williams. He talks about what money represents, redistribution of income by Government, or what he calls it legalized theft, and how capitalism raised the standard of living of the world. He never fails to deliver a great message.

Read this short article titled, The Fantasy of Wealth Redistribution by Lorenz Kraus at Mises.org, for further analysis.

 

Government Intervention And It’s Consequences.

Posted December 5, 2012 by austrianaddict
Categories: Government and Politics

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I found this video on EconomicPolicyJournal.com, it is by Nick Gogerty at gogerty.com. You will visually see the inflating of the housing bubble caused by Federal Reserve money printing. You will also see the bursting of the housing bubble, a bubble which would have never been created in the first place, if not for the Fed’s money pumping.

A toxic brew of, 1)  Government mandating lower lending standards, 2) the Federal Reserve printing the funding for these loans, and 3) the artificial lowering of interest rates because of this counterfeiting, created mortgages that could not possibly be paid back. Banks got bailed out by the Federal Reserve’s purchase of mortgage-backed securities through Read the rest of this post »

Milton Friedman on Market Failure vs. Government Failure. Which Has a Higher Cost?

Posted December 3, 2012 by austrianaddict
Categories: Econ. 101, Government and Politics

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The highest cost is in our loss of individual freedom, which happens incrementally with each encroachment into the free market by government.

Francisco Capella, ” Markets are never perfect because human beings are limited in their abilities; proposing state fixes to alleged problems that individuals cannot solve freely seems to forget that the state is also made up of humans; and perhaps not the best ones. Bureaucrats are not disinterested angels, and the worst might get to the top.”

Milton Freidman is not a favorite of many Austrian thinkers mainly because of his ideas on monetary policy, and I agree on that point. Personally, I think he Read the rest of this post »