Green Energy Proving Venture Capitalists are Smarter Than Government Bureaucrats.

Posted September 30, 2012 by austrianaddict
Categories: Econ. 101, Government and Politics
Tags: , , , ,
President Barack Obama, with Assembly Manager ...

President Barack Obama, with Assembly Manager Teri Quigley, drives a new Chevy Volt, during his tour of the General Motors Auto Plant in Hamtramck, Mich., July 30, 2010. (Official White House Photo by Pete Souza) (Photo credit: Wikipedia)

Robert Bradley Jr. in an article titled Electric Car Verdict: Another Government Subsidized Bust, at masterresource.org writes, “When government tries to pick losers and winners, it typically picks losers. Why? Because in the free market consumers pick winners to leave the losers to Government.”

Another reason Government can’t out perform the free market is because it doesn’t have a tenth of the knowledge that exists in the free market. Also, in the market, the individual who risks knows he takes the loss if he is wrong. When the Government picks a loser Read the rest of this post »

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Counterfeiting by the Federal Reserve, Although Legal, Still Results in Theft.

Posted September 29, 2012 by austrianaddict
Categories: Econ. 101, Government and Politics, Hall of Fame
Tags: , ,

Counterfeit—1. make an imitation of something genuine so as to defraud. 2. an imitation made to deceive.

The Federal Reserve: The Biggest Scam In History

The Federal Reserve: The Biggest Scam In History (Photo credit: CityGypsy11)

Is it legal for you to counterfeit money and try to purchase goods with your printed dollars? It’s illegal because it is theft. You are exchanging something for nothing. You get a good or service that was the property of someone, and they get a counterfeit bill. When that person tries to use the counterfeit bill in a future exchange and it is swiped with the pen and found to be counterfeit, at that moment he knows the good or service he once owned was stolen.

When the Federal Reserve injects counterfeit money into the economy it’s Read the rest of this post »

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Federal Reserve Money Injections Since 2000 Haven’t Worked as Advertised.

Posted September 27, 2012 by austrianaddict
Categories: Econ. 201, Government and Politics
Tags: , ,
Plot of the US Federal Reserve Open Market Pur...

Plot of the US Federal Reserve Open Market Purchases of Repo Mortgage Backed Securities (MBS), 2000–2007; based on US government data from http://www.newyorkfed.org/markets/omo/dmm/historical/tomo/search.cfm (Photo credit: Wikipedia).

In an article by Phoenix Capital Research on ZeroHedge.com, it lists all the money injections by the Federal Reserve and the Government from 2008 through 2012. One way the Fed pushes money into the economy is by purchasing Mortgage Backed Securities from the entities that hold them, namely banks. The mortgage is now on the balance sheet of the Fed, and the money is now held, as reserve currency (numbers electronically created), on account at the Fed. The bank can now loan ten dollars for every one dollar held as reserves. The reason they can do this is because we operate under a ten percent fractional reserve banking system which means, Read the rest of this post »

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Healthy, Hunger-Free Kids Act, Doesn’t Work as Planners Planned.

Posted September 26, 2012 by austrianaddict
Categories: Government and Politics
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Healthy, Hunger-Free Kids Act of 2010

Healthy, Hunger-Free Kids Act of 2010 (Photo credit: Leader Nancy Pelosi)

“How do you expect us to go through the day and work hard when they give us smaller portions and we’re hungry”. This is a quote by Ashley Chaneco age 13 of Greater New Bedford Vocational-Technical H.S. after school lunch nutritional standards were changed under the “Healthy, Hunger-Free Kids Act”.

In this article, by Natalie Sherman in South Coast Today, you will see what happens when government try’s to intervene into our lives. The price goes up, the quality of the product goes down, people find ways around the law through black markets and smuggling. If the “Healthy, Hunger-Free Kids Act” makes kids hungry, do you think “The Affordable Care Act” will make health care affordable. If you think health care is expensive now, wait until it becomes affordable.

Search – students, black markets, school lunch, – and you will find articles about how students around the country are dealing with the new school lunch mandates. It gives me hope for the future when I see young people acting toward onerous government mandates like our founding fathers acted toward the Kings onerous rules constraining individual freedom.

One question, looking at the picture above, do you think this bill was signed into law to “help the children”, or to help the “adults”.

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Thomas Sowell–“Economic Problems Don’t Have Political Solutions”

Posted September 23, 2012 by austrianaddict
Categories: Econ. 101, Hall of Fame
Tags: , ,

      Thomas Sowell gives a speech in 1993 about economic vs. political decision-making. It’s amazing how this applies today. Economic principles, like gravity, always win. There are three other parts of this speech to enjoy.

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“The Fallacy of Redistribution”. Another Home Run by Thomas Sowell.

Posted September 20, 2012 by austrianaddict
Categories: Econ. 101, Hall of Fame
Tags: ,
Hoover Institution

Hoover Institution (Photo credit: Wikipedia)

Nobody can explain economic concepts as clearly as Thomas Sowell. He consistently meets or exceeds the high standards set by his previous works. We all wish to be this good once. He’s this good all the time. Read “The Fallacy of redistribution” here.

Quote from the article “The history of the 20th century is full of examples of country’s that set out to redistribute wealth and ended up redistributing poverty”.

Dr. Sowell is a senior fellow at the Hoover Institute.

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Keynesianism vs. The Austrian School.

Posted September 19, 2012 by austrianaddict
Categories: Econ. 101, Econ. 201, Hall of Fame
Tags: , ,

F. A. Hayek — “The coordination of men’s activities through central planning and through voluntary cooperation are roads going in very different directions: the first to serfdom and poverty the second to freedom and plenty”.

This quote by Hayek sums up the ideological battle being waged around the globe today, but especially here in America. This is not a new fight. The Revolutionary War was fought over freedom of the individual to order his life as he sees fit, versus the power of a King to take those decisions from him and make him a subject. Library shelves can be filled with the volumes of books that deal with this ideological battle, summed up so brilliantly in one sentence by Hayek.

This Keynes vs. Hayek rap video deals with Keynesian intervention, vs. the Austrian Business Cycle Theory.

The rest of the above quote by Hayek is —  “The battle for freedom must be won over and over again, the socialists of all parties must be persuaded or defeated if they and we are to remain free men.”

The Fight of the Century Keynes vs. Hayek Round Two is better. Click on it when it pops up after the first video finishes playing.

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Fed. Policies Crash Head on Into The Austrian Business Cycle Theory. QE3 Can’t Clean up This Wreck.

Posted September 18, 2012 by austrianaddict
Categories: Econ. 201
Tags: , , ,
Quantitative easing

Quantitative easing (Photo credit: duncan)

Peter Schiff explains what will be the end result of QE 3, in this article Operation Screw at Euro Pacific Capital Inc’s site. Who should we believe about the chances of QE3 succeeding, Peter Schiff, who predicted the 2007 economic meltdown, or the Federal Reserve’s policies, embodied in the person of Ben Bernanke it’s chairman. The policies of credit expansion by lowering interest rates and printing (counterfeiting) money caused the original meltdown and continues to stall any chance at real recovery. Schiff understands Keynesianism and the Austrian Business Cycle Theory. Kenynesians try to cure the bust which follows the artificial boom with more cheap credit, below market interest rates, and increased money supply by counterfeiting. The Austrians want to keep the artificial boom from happening by letting the market decide interest rates, and also decide what will be used as the unit of exchange aka, money. The bust is the reallocation, through the free market process, of previous misallocated resources brought about by Federal Reserve’s policies. The Keynesians do everything in their power to prevent the cure from happening. That’s like not prescribing chemo therapy or radiation therapy to cure a cancer patient because the side effects are too unbearable for the patient compared to his death. For a more in-depth explanation of business cycles and their causes read this article by Murray Rothbard at the Mises Institute.

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Failed Policies of the Last Twelve Years.

Posted September 16, 2012 by austrianaddict
Categories: Econ. 101, Government and Politics
Tags: , , ,
English: Components in the US Money supply bas...

English: Components in the US Money supply based on Federal Reserve historical data (Photo credit: Wikipedia)

When I hear the president say, “We can’t go back to the failed policies of the previous administration”, it leaves me scratching my head. What were these policies, and how different are they from the policies of the present administration? Lets look at the policies during the Bush administration. Read the rest of this post »

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Real Analysis about Middle East Insurgency on SOFREP.COM

Posted September 14, 2012 by austrianaddict
Categories: Government and Politics
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English: US Navy SEAL Trident Insignia

English: US Navy SEAL Trident Insignia (Photo credit: Wikipedia)

If you want analysis and real information about our military and foreign policy from an inside source, Brandon Webb’s SOFREP.COM is the site for you. Sofrep stands for special operations forces report. Brandon Webb is a former Navy Seal sniper and has a lot of knowledge and access to inside information about the situations going down in the Middle East this week. Read the article “Initial Reports from Benghazi…”, and this article “Stoking the Flames of Insurgencyf Insurgency” for a perspective that not many americans have. Then read this article about Glen Doherty editor on Sofrep, former Seal killed this week while working as a security contracter at the embassy in Libya.

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