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Showing posts from July, 2015

Why we should abandon the State

Revisionism, according to Harry Elmer Barnes, is bringing history into accord with the facts.Why would history and factual evidence be at odds?Because governments, per Orwell, falsify the past to keep the population subservient.If people really knew what governments had done they would want less of it than they have.
How much less is the question Lew Rockwell addresses in his book, Against the State: An Anarcho-Capitalist Manifesto, released in May, 2014.  As the title makes clear, Rockwell argues for the complete elimination of the State.
Many people otherwise favoring unfettered freedom will qualify their position with an inevitable “but” — “but we need government to provide physical security and dispute resolution, the most critical services of all.”
Really?
If the free market is the “arena of voluntary interactions between individuals” that has proven so fruitful over the past 250 years, why does it need a coercive monopoly — the State — providing its most critical services?  Mono…

Will Keynesians or Keynesian Economics Take the Hit?

It’s rare that I take issue with Gary North in matters of economics or history, but his article of July 25 — "'The Bucks Stop Here': Keynesian Economics Will Get Blamed for the Crash” — is one I wish to discuss.
He begins: For as long as the present economic system lumbers along, Keynesians will control the levers of power and influence. But when at last the system goes down in a heap, and central banks cannot restore the system, there will be a quest for answers. . . .  When people's retirement plans are smashed, they are going to look for somebody to blame. That means Keynesians. The Keynesians will not be able to transfer this responsibility to somebody else. . . I can see people blaming specific Keynesians, such as Yellen or Bernanke, but not Keynesianism itself.They will not blame "Keynesian Economics" — unless it’s to update it.Voters will demand reforms.They’ll want heads to roll.Those at the top of the food chain will find a way to exploit their outr…

Why central banking persists

Only a few people care whether central banking persists, and they're the ones who profit from it.  In some cases they profit enormously.  The average Joe or Jill doesn't know about central banks and doesn't care to know.  To the ones at the top of the political - economic heap, this is how they want it.

A central bank comes about through political favors -- favors to big bankers and to politicians intent on buying votes and making war.  Where you find a country with a central bank, you have laws establishing it.  It requires political force to make them work.  A central bank is not an agreement among bankers.  It is an agreement backed by the monopoly force of government between bankers and politicians.  They are not free market entities, though they usually posture as one.

Central banks are often described as inflation fighters.  As monopoly producers of money, they are instead the sole source of inflation.

Central banks are said to be responsible for making capitalism wo…

One more book, Mr. Stockman

On March 14 of this year Gary North published “A letter to David Stockman” in which he identified Stockman’s popular website as providing the reasons and statistical evidence for why “Keynesian economic policies are going to blow up the world.”North goes on to say: You are the lightning rod for all of the establishment economists and senior bureaucrats who are overseeing what is going to become the worst economic disaster of modern times. They don't like the criticism. They fully understand that, if what you're saying is true, they are going to get blamed in the media, the textbooks, and the cultural memory for a comprehensive disaster that they personally engineered, supervised, and took credit for when the going was good.  You are likely to become the John Maynard Keynes of this century. You will be remembered as the spokesman who called attention to the fact that the emperors have no clothes. Keynes served as the chief designer of the fabrics which have clothed the emperors…