Tuesday, June 29, 2010

Santelli is Right, Liesman is Wrong



I heart Rick Santelli. It's embarrasing when someone like Steve LIESman (and almost any other "financial guru") on a the popular financial channel doesn't know a lick about Austrian economics and the science of human action. The Keynesian dead-end is fastly approaching and these folks are scared to death their ivory tower will meet the same fate as the Tower of Babel.

Wednesday, June 23, 2010

Radio Free Market - Dr. Tom Dilorenzo: "Stateless but not Lawless"

Radio Free Market's show on Saturday featured Dr. Tom DiLorenzo, who is the author of the The Real Lincoln and Hamilton's Curse.

One of the documents referenced by Dr. DiLorenzo is provided here (for free) published by Terry Anderson and P.J. Hill written back in 1977

This show was altogether amazing, eye-opening, and downright disturbing.  All of the facts, myths, fallacies, and stories we've heard about the so-called "Wild West" are really gross untruths.  Yet, those in Hollywood have made a fortune off of this revisionist history of the actual west.  Why is that? 

Such highlights include the peaceful and voluntary compacts that formed without any form of centralized government or police state in the Wild West.  Land Clubs, Wagon Trains, Mining Camps, and Cattlemen's Associations were examples of near "anarcho-capitalist" means of protectiving private property and instituting civil order and justice.


Tom DiLorenzo, to me, is an amazing scholar in who he has done Yoeman's work to peel back many of the many false historical absolutes of "gov't knows best" many have taken as truth for so long and smashed them with economic history and research that is out there freely available to the public.

The advent of the internet is the great equalizer to this revisionist history and we owe folks like DiLorenzo a debt of gratitude for showing what information is out there if you want to find it and retell it to others.

Thursday, June 17, 2010

21st century gold rush - facts vs. fiction

Reprinted from my article in Examiner.com

Business Insider columnist, Joe Weisenthal , recently published an opinion piece directed at the "gold bulls" and the "gold bugs". To say the least, Weisenthal and many of the mainstream "financial gurus" who regularly write pieces about gold and the economy lack the fundamental grasp of sound monetary theory.

Gold Bullion

The 1oz South African Krugerand Bullion Coin is

one of the most recognized coins in the world which

was designed to circulate as currnecy

Here are Weisenthal's primary arguments.

  1. No country has ever lasted very long and neither has a monetary system based on a gold standard
  2. "Greece has a gold standard [currency] of sorts"
  3. "Going off the gold standard helped us out of our mess"

Let's start out by recognizing Weisenthal ignores the basic axiom individuals act to satisfy their ends by certain goals and means.

History and Austrian economic theory illustrates how individuals in a free society (as shown throughout history) voluntarily seek a gold standard. This runs contrary to the current situation where individuals are forced through coercion to accept "legal tender laws" which cause bad money to chase out good money, known as Gresham's Law.

"Money" is actually a commodity like any other good that derives out of barter as a means of indirect exchange.  An example of this activity is when fisherman who wants to trade his surplus of fish for other goods such as wheat, corn, or other consumer goods.

Pat Barron, an Austrian economist, lecturer at the University of Iowa, and guest expert for the Cedar Rapids Examiner  adds:

Only the gold itself is money, whether in the form of bullion, dust, or minted into coins.  All the rest are money substitutes; i.e., supposedly redeemable in gold.  Gold bugs, as the author calls us, make the important point that a return to a gold standard must include a return to using gold coins in some way.

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