Scientism Standing in the Way of Science: An Historical Precedent to Austrian Economics
Gene Callahan recounts a forgotten period of intellectual history when the obsession with modelling crowded out the search for truth.
Credit Bubble Becoming Mainstream?
The massive credit expansion that Austrians have been calling attention to since the mid-90s has morphed from a stock market bubble into a housing bubble. Whether there was, or was not, a stock market bubble was much disputed among mainstream media analysts until fairly late into the stock bear market. Now the existence (or not) of a housing bubble is similarly controversial. Slowly the mainstream media is starting to question, is there a credit bubble?
Arthur Andersen Conviction Overturned by U.S. Supreme Court
In a unanimous opinion, the Supreme Court overturned the accounting firm’s June 2002 conviction. The court found that the jury instructions at trial were overly vague and broad. In essence, the trial court improperly found the company guilty without evidence of intent to commit a crime. There was no obstruction of justice or improper destruction of Enron-related documents. It turns out that the company was railroaded, having been made the scapegoat for the Enron scandal.
The Corruption of the Jedi
The Jedi sacrifice truth and justice to ambition, writes Adam Young. May this serve as a warning to all who see in emergency circumstances a reason to betray principles and adopt the methods of the Dark Side.
Walker Forecasts Asian Bust
Jim Walker (an Austrian economist with the bank CLSA is reportedly forecasting another Asian crisis (Note: the Sydney Morning Herald requires registration to read the article, registration is free). (See also this in-depth study by Walker and others, although it is about 1 year old).
That France Vote
The fallout from the French vote of “no” on the EU constitution includes a sign that Tony Blair may scrap plans to hold a similar referendum--which effectively kills, for now, the whole effort to create an overarching government charter. The spin, which often has little to do with reality, is where it gets interesting. Did it represent a blow to the idea of liberalized markets in Europe? A rejection of centralization? Or was the whole event used by voters as a chance to punish the presidency of Jacques Chirac?
Real Bills, Phony Wealth
“The masses are misled by the assertions of the pseudo-experts,” wrote Mises, “that cheap money can make them prosperous at no expense whatever.” The damage that this inflationary fallacy has done to our monetary institutions cannot be over-estimated. In spite of efforts by classical and Austrian economists to refute it, it refuses to die.
Committees Set Rates Better Than Individuals
So, here’s a study from the Bank of England in which the setting of interest rates by a notional central bank for a modelled economy is found to be consistently better when done by committees than when done by lone members of these committees.
It tempts one to propose an extended experiment with bigger committees.
Why do people vote for Communists?
Communist Parties are still alive and well, even in post-communist countries. Luca Ferrini speculates that the larger the state, the more it corrupts the mind and the culture. Communism means never having to leave the nest.
From Libertarianism to Neoconservatism
This long and fascinating piece by James Piereson, appearing in the WSJ, inadvertantly documents a hugely important shift: the move from foundation support for libertarianism in the 40s-60s to neoconservatism today. This has been as disastrous as it as been effective.
