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Old 11-17-2010, 10:43 AM
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zambizzi zambizzi is offline
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Default Re: A funny state of the economy

Originally Posted by drums_n_surf View Post
Hey zambizzi...just curious if your an economist or something similar. I'm currently studying economics so i'm learning about all that stuff. I was under the assumption that its the neoclassical and monetarist stuff that has been getting taught since the 70s, until about 2 years ago where there seems to be a bit of a revival of Keynesian economics with the whole global financial crisis. I do agree with you that there is alot of merit in learning the basics of Hayek and the Austrian school of thought though.
Keynes became popular because his theories empower statists, by attempting to rationalize a centrally-planned and managed economy. This is popular with state schools, naturally, and has become the dogma of choice amongst socialist professors. Keynes admitted, himself, in his German-language translated book, that his theories were really only suitable in an absolute dictatorship, such as Nazi Germany. It should be entirely clear that Keynesian theories are nonsense and have been completely discredited...particularly in the past two years.

The Austrian school explains how markets really work and how individuals act within markets. It's simple common sense, broken down into simple language. I would recommend you read "Man, Economy, and State" by Murray Rothbard. It's a life-changing experience. ;)

Originally Posted by aydee View Post

Zambizzi is a long time critic of the Fed and a seriously smart guy. He can Maynard with the best of them...

Pol, not sure if the administrations had much to do with the slump other than the economic consequences of a war without an end in sight. Its a gradual unravelling of long term fiscal policies, and tectonic shifts in the global economy..
Ha...thanks! You're correct here, Abe. While the FED is chartered and is often influenced by Congress, it has complete autonomy to manipulate the currency, and thus the entire global economy. The outcome is the current economic chaos. Blaming political action is mostly a distraction. Nothing politicians do, on the scale that they do today, would be possible without a fiat currency.

Originally Posted by PQleyR View Post
Whoever's administration it was that supposedly caused the recent problems, this stuff goes back to at least 1913. Fractional reserve banking is a bad idea for everybody except bankers. Same goes for private central banks. The war of independence was primarily fought to free America from the tyrannical tendrils of the Bank of England, ask Thomas Jefferson!

We all have some very interesting times up ahead of us.
Bingo! The FED is successful in what it was created to do - shift all of the risk taken by the banking cartel, to the public. It was created to force taxpayers to guarantee member bank solvency. The rhetoric was otherwise (stabilize the currency, provide an elastic money supply, etc.), but it succeeded in none of those things. The FED has resided over a massive string of recessions and depressions since 1913, all created by its own policy. The USD has been devalued by roughly 95%, since then.

Here's a fantastic 40 min. video that explains the FED very well. This is where you have to look to understand the state of things.
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