Speaking of Frauds… December 19, 2008
Posted by Resident Egoist in : Economics , comments closedThe majority of commentators on the news lately seem to disapprove of the Bernard Madoff “ponzi scheme” that just transpired – no thanks to the SEC. So while we all have our minds presently focused on frauds, I’d like to bring to everyone’s attention who doesn’t already notice, that Social Security and fractional-reserve banking are two giant ponzi schemes, which have ben sustained so long only because of the existence of an even bigger fraud: the paper money printing press that so many consider to be wealth. And my work here is done.
Francisco D’Anconia, Redux March 11, 2008
Posted by Resident Egoist in : Economics, Philosophy , comments closedI just stumbled upon a very rare thing, and feeling a little nostalgic about blogging, I thought I’d share this with whomever is still dropping by here.
And what exactly is this: it’s a rational comment from Slashdot:
why do you think you achieve some sort of higher moral ground or purpose by shunning money? all you do is hobble your own ability to properly understand how the world you live in actually functions. i’m not asking you to worship money. and money certainly leads people to do evil things. but again, money is just an abstract expression of human desires. the real evil is aspects of human nature itself, not a piece of green paper with alexander hamilton’s face on it
all i’m asking you to do is grant money the proper respect it deserves for quantifying abstract human interest in such a way that it makes the world we live in a better place. yes, money is a great invention, like the wheel or the semiconductor. it makes your world a better place. bartering chickens for school books gets kind of old after awhile. thus the glorious invention of money. and no, i’m not gordon gecko. i’m just a realist. realism trumps cotton candy idealism any day. and the most sober realistic consideration of money in this world is that it makes your life better
The author was trying to knock some sense into those smug, obliviously self-righteous slashdotters who think WikiPedia shouldn’t consider selling advertisements as a solution to its financial problems. If you’re familiar with Atlas Shrugged, this should remind you of Francisco’s Money Speech — save for the fact that the definition of money here leaves a lot to be desired.
For a quick and excellent starter on money, see What Has Government Done to Our Money, by Murray Rothbard. Though I’m usually wary to recommend this author’s writings, this is by far, the single best introduction to money I know of, bar none. In light of this country’s current monetary tragedy, this should interest you.
Welcoming The New Econ Wizzz January 31, 2006
Posted by Resident Egoist in : Economics , comments closedAlan Greenspan had his last day wrecking the U.S economy today. It would have been a very sad day for America if it weren’t for the fact that everyone’s beloved Economic Wizz is to be replaced by another very beloved Money Wrecker, Ben Bernanke, whose nomination the Senate approved today. Woohoo!!
And don’t worry ladies and Gentlemen. Even if Mr. Bernanke isn’t as good as his predececessor at devaluing your hard-earned money, the Washington Post reassures us that he is inheriting a very “experienced staff” — so yes, the deed will be done.
They have excellent evidence too … for example, on that fateful day, September the 11th 2001, Fed Chairman Alan Greenspan was all but present in this country, yet his staff, all by itself, managed to pull us through and save the stock market from certain doom — yep just another day at the Federal Reserve!
Now, the Post in its own words:
Alan Greenspan was unreachable on the morning of Sept. 11, 2001, as terrorists destroyed several blocks in the financial heart of New York City. Returning from a bankers’ conference in Switzerland, the Federal Reserve chairman was flying in a jet over the Atlantic — depriving the central bank of its vaunted crisis manager at a daunting moment.
Yes Dear Reader, let the suspense sink in.
But the Fed did fine without Greenspan that day, led by several people who have worked alongside him during other crises over his 18 years running the central bank. Fed officials and senior staff members swiftly reassured the world, through words and actions, that the U.S. financial system would keep working — earning the chairman’s praise when he returned the next day.
I invite everyone to join me in signing the petition urging the Lord to bless the Fed staff. What would we do without the Federal Reserve? The thought is frightening, I know.
Technorati Tags: Federal Reserve, Alan Greenspan, Ben Bernanke
The Spoliation of Central Banking January 5, 2006
Posted by Resident Egoist in : Economics , comments closedStefan Karlsson has a great article on the destrutiveness of central banking at the Daily Reckoning. He offers a rather insightful way of looking at the all the different and oft-hidden ways that the centralized banking system can manipulate economies. Here’s the gist of the article:
The Fed does not just manipulate the economy through increasing the money supply. It also manipulates the economy through the expectations of changes in the money supply.
Illustration:
[Fed Chairman, Alan] Greenspan has been the single most powerful individual in the world in the economic sphere.
By merely changing his choice of words between different speeches he has been able to rattle the markets. When he merely removes or add words like “measured” or “accommodative” somewhere in his speech, the markets either rally or panic. And through his words and his actions he has had a profound effect on the US Economy and the world economy as a whole.
Read the rest here.
Technorati Tags: Alan Greenspan, Federal Reserve, Inflation
Vulcan Capitalism, Austrian Drivel January 3, 2006
Posted by Resident Egoist in : Culture, Economics , comments closedThe things that come out of the Mises Institute nowadays are starting to become nearly unbelievable. Mr. Rockwell & Co. seem to be publishing every piece of B.S that labels itself as “pro-market.” A recent example is an article by a certain Jack Maturin which entertains the [literally] out-of-this-world idea that the Vulcans of the Star Trek universe are “really future Austrians in disguise.” By “Austrian,” he means “advocate of the free market social order.” As proof of his megatheory he offers his collection of quotes from Uber-Rationalist Mr. Spock — among them the following one:
Being a Vulcan means to adopt a philosophy, a way of life which is logical and beneficial. We cannot disregard that philosophy merely for personal gain, no matter how important that gain might be. — Journey to Babel.
Altruism anyone? As to logical, give me a break! What the hell does Spock mean by a “beneficial way of life” [sic] if said way must be followed without — or better yet, at the expense of — personal gain, i.e., benefit? Somehow however our dear author seems completely blind to this blatant contradiction, for according to him the meaning of the above quote is this:
… if you want to understand the social sciences, adopt the praxeological method of a priori logic. You need to have your theory straight before you begin to try to come to some clear understanding of how the world around you works. In the long term some of us may die, but our children will succeed to inherit our decisions, good or bad. So if you want your children and your neighbor’s children to prosper, always follow the Austrian method of logic.
Excuse me, but what the [bleep] is he talking about? How on earth did he arrive at this bizzare interpretation? I must let you divine, as I have no idea. Mr. Spock’s quote is clearly an ode and an urge to principled Altruism, and Altruism in Ethics translates into Statism in Politics, as demonstrated both in our actual history and the fictional semi-socialistic world of Star Trek. To the credit of the series’ authors however, the Borg race is an excellent depiction of the nightmare of collectivism. As to the allegedly “Austrian” way of doing “logic”, well, it must be rather good — so good that it is incapable of spotting a glaring self-contradiction in the same single sentence.
Thankfully, a commetator with a cooler head on his shoulders quickly put Jack Maturin’s dreams to rest with one quote of his own:
The needs of the many outweigh the needs of the few.
Yes, that was Mr. Spock speaking — guess who else spoke (and still speaks) in similar ways? So much for Vulcan Capitalism.
Technorati Tags: Mr. Spock, Star Trek, Mises Institute, Capitalism, Reason, Rationalism, Austrian Economics, Altruism