From the mouth of a wolf in sheep's clothing

thedo — Wed, 24 Sep 2008 21:30:00 GMT

There's much to be said about the current financial crisis. At the heart of this, as every Austrian knows, is the fault the US government holds for creating the current situation through its central bank and its inflationary policy. This fundamental economic truth cannot be stated enough. Ignorance of it shows in so-called debates about the crisis in popular media, sans Ron Paul's occassional publicity as the sheepherders perhaps finally realize they were really part of the herd that bleated the black sheep. Yet current ignorance exists because, obviously, many were never educated. They were lied to; or, to use the popular apology: they were the best they could be with what information was present at the time. That lie, or missing education, is that the Great Depression was caused by laissez-faire capitalism, which we, the soundedly educated, know to be a lie as bald as John McCain's face when asked an economic question by Ron Paul (the same face Gen. Petraeus wears).

The cause behind the Great Depression, so well-put by Murray Rothbard in his book, America's Great Depression, was the government. This cannot be stated enough considering current situations. The fact that this truth is so unknown can be seen in how popular media address the current financial crisis and its so-called bailout (read: extension). This crisis and its intervention are labeled as "the greatest since the Great Depression." Although a great starting point for addressing the horrible New Deal, this phrase is complete misdirection. The "greatest" economic intervention in the US economy is what preceded and precipitated the Great Depression; planted the seed, bore a tree, and flowered with Government Apples for a "fruitful economic future." It was the US central bank and its inflationary policy during the 1920s that was the "greatest economic intervention" in US history. It was what brought about the Great Depression, and ignorance of the fact led many to bleat along blindly with the sheepherders who introduced the New Deal and those who look to unleash the wolf that is Henry Paulson's $700 billion bailout—the bailout that professes it will shore up bad US loans when it will only loan the crisis more time until it reaches a level never before seen, even "since the Great Depression."

Today, ignorance; Tomorrow, education

thedo — Thu, 22 May 2008 15:11:00 GMT

Many people perhaps dream of an executive position in a wealthy, well-to-do business. To manage and direct people! to be the boss. But few people are. The reason should be obvious: it takes a certain kind of skill and talent to successfully direct the fortunes of a business that captures a certain sector of the market and appeals to a mass of people.

Yet far many more people have the skill and talent to sit back and criticize others, especially if they are wealthy. But few people are in a more prestigious position to criticize others, such as Kathie Lee Gifford. Only a few minutes ago was she hosting The Today Show, holding a newspaper up and pointing to the questioning of oil executives, stamping her frustration about their excessive personal earnings. This followed her coverage of the recent decision by airlines to charge a new fee of $15 for the first bag checked on an airline, which this forthcoming charge is tied to rising gas prices. And the news reports Kathie displayed on her show referred to "skyway robbery." Indeed, a voluntary exchange between business and consumer for a nominal fee for the rising cost of business is robbery!

I wonder how "excessive" Kathie's earnings are to sit in a chair for hours on a day and offer her unfounded accusations. Of course, airlines aren't engaging in robbery, and oil executives are not making more than they should at the expense of the public. Their prices, which the public accepts and drives, are part and parcel and largely symptomatic of government intervention. Inflation, the blocking of new refineries, gasoline taxes, and an interventionist foreign policy are the catalysts of oil executives and airline managers asking for higher prices, which the public accepts.

Ron Paul was every so often questioned during his more public run for the White House about his environmental stance. Is the United States government supposed to drive alternative energy? No! he always said, the market should drive energy. If the price of gas becomes too much a burden on people then the market will seek alternatives on its own. The government, has no role in energy, as it does not with anything else. Education of this point is the starting point for tomorrow's show.

Apropos Austrian Aphorisms : inflation

From the mouth of a wolf in sheep's clothing

Today, ignorance; Tomorrow, education