Keynes Was A Vicious Bastard

By Keith Weiner – Re-Blogged From Gold Eagle

My goal is to make you mad. Not at me (though I expect to ruffle a few feathers with this one). At the evil being wrought in the name of fighting inflation and maximizing employment. And at the aggressive indifference to this evil, exhibited by the capitalists, the gold bugs, and the otherwise-free-marketers.

So, today I am going to do something I have never done. I am going to rant! I am even going to use vulgar language (which is totally justified).

In researching several recent articles, I re-read old passages from Keynes. Consider these snippets:

“For a little reflection will show what enormous social changes would result from a gradual disappearance of a rate of return on accumulated wealth.”

Continue reading

Advertisements

Is Capital Creation Beating Capital Consumption?

By Keith Weiner – Re-Blogged From Gold Eagle

We have written numerous articles about capital consumption. Our monetary system has a falling interest rate, which causes both capital churn and conversion of one party’s wealth into another’s income. It also has too-low interest, which encourages borrowing to consume (which, as everyone knows, adds to Gross Domestic Product—GDP).

What Is Capital

At the same time, of course entrepreneurs are creating new capital. Keith wrote an article for Forbes, showing the incredible drop in wages from 1965 to 2011. There was not a revolution, because prices of goods such as milk dropped at nearly the same rate. The real price of milk dropped as much as it did, because of increased efficiency in production. The word for that which enables an increase in efficiency is capital.

Or, to put it another way, capital provides leverage for productive human effort. We don’t work any harder today, than they did in the ancient world (probably less hard). But we are much richer—we produce a lot more. The difference is capital. They had not accumulated much capital. So they were limited to brute labor, to a degree which we would find shocking today.

Continue reading

Central Planning Is More than Just Friction

By Keith Weiner – Re-Blogged From Gold Eagle

It is easy to think of government interference into the economy like a kind of friction. If producers and traders were fully free, then they could improve our quality of life—with new technologies, better products, and lower prices—at a rate of X. But the more that the government does, the more it burdens them. So instead of X rate of progress, we get the same end result but 10% slower or 20% slower.

Some would go so far as to say, “The free market finds ways to work even through government restrictions, taxes, and regulations.” We won’t address cardboard straws emerging where plastic straws are banned. Or gangs selling illegal drugs on the black market, when they are prohibited by law.

As usual, we want to talk about the most important kind of government intervention. And it happens to be the one kind of government intervention that is accepted by nearly everyone. The intervention supported by the otherwise-free-marketers.

Continue reading

Debt, Division, Dysfunction, and the March to National Bankruptcy

By Stefan Gleason – Re-Blogged From Money Metals Exchange

Never in our lifetimes has American politics been so marked by division and dysfunction.

The longest partial government shutdown in history occurred after the Democrat-controlled Congress wouldn’t compromise with President Trump on a border wall. The impasse is but one symptom of a deeper malady – one that threatens to wreak wider social and financial instability in the years ahead.

Put plainly, the pillars of the American system as we have known it are eroding.

Continue reading

Poll: Most Democrats Prefer Socialism to Capitalism

By Kaylee McGhee – Re-Blogged From Liberty Headlines

According to a poll released by Gallup on Monday, 57 percent of Democrats favor socialism while only 47 percent have a positive outlook on capitalism.

It marks the first time in Gallup’s measurement since 2010 that a clear majority on the left (outside the margin of error) has shown a socialist inclination.

Continue reading

What Was the Cold War?

By Andrew Roberts – Re-Blogged From Prager University

The decades-long “Cold War” (1947-1989) between the United States and the Soviet Union was so named because the two global powers never came to direct blows. Yet, the war was not without its victims. In fact, millions of Cubans, Koreans and Vietnamese suffered under Communist tyranny. In this video, Renowned British historian Andrew Roberts explains why “The Cold War” could just as easily be called “The Third World War.”

[Looking at the world today, including here in the USA, I think the Cold War still may be going on, with Russia, China, and/or Islam much closer to winning against the US. -Bob]

CONTINUE READING –>