Posted by: kenbarker | May 14, 2009

Thomas Woods at OSU

 

Meltdown by Thomas Woods

Meltdown by Thomas Woods

What: Thomas Woods at OSU Sponsored by YAL

When: May 28, 2009 7:30 PM

Where: Click the link below to find out!

Meetup Description: We are proud to announce that Thomas Woods, the author of Meltdown, A Free-Market Look at Why the Stock Market Collapsed, the Economy Tanked, and Government Bailouts Will Make Things Worse, will be speaking at the Ohio State University on May 28th, sponsored by the Ohio State University Young Americans for Liberty and the Ohio Freedom Alliance. He will be speaking about the true causes of the economic meltdown.

Location
Ohio State University
Hitchcock Hall 0131
7:30 pm

Posted by: kenbarker | December 3, 2008

Austrians told us so & the audacity of no change

About a year ago I woke up and did some fast reading and re-reading of basic Austrian School economics.  The credit crunch was in its infancy.  The first swoosh of air was coming out of the housing bubble.

Quick summary:  Manipulating a currency creates interest rates that don’t follow the natural time preferences of people in the market place.  Capital investment becomes cheaper.  Additional new money tends to concentrate in particular sectors of the economy.  This drives prices up.  Rising prices signal to more investors and entrepreneurs to join the fray.  ”There’s money to be made in X!”.  Cheap credit spurs on consumption of high-end finished products.  More capital is invested to meet this demand.  Savings doesn’t pay (low interest rates).  More borrowing occurs chasing after continued high returns in the asset bubble sectors.  Inevitably the increasing credit is unable to support those higher returns.  The bubble has burst.  The credit crunch begins.  Great investments during the run up of the boom are now revealed to be real stinkers.  And so it goes….

The Austrian School of economics predicts this business cycle very well.  Should we call on the Austrians for guidance during these trying times?  Will we?  I don’t think we will.

I would have loved nothing more than to have Obama admit he didn’t have the answers to our economic problems and reach outside his comfort zone and choose an Austrian or two to help him through these times.  He is a tried and true Goldman Sachs guy.  Does anyone trust Paulson to run anything after these past couple of months?  Why would we expect better from another GS CEO?  Rubin will be no better.

This lead to the second topic of my post.  The real Obama is revealing himself.  Are his faithful followers even paying attention anymore?  Obama, the peace candidate.  Obama, the one.  The one who brings hope and real change.  Have you seen the appointments that he is making to his cabinet?  Clinton as SecState.  Gates seems to be solidly in as SecWar.

My left leaning friends have every reason to hate-on Bush and his policies.  Please wake up and see that we are getting the same.  Global empire.  Global domination.  Our foreign policy will continue to be centered around using our force of arms and our wads of cash to tell other countries what to do.  Maybe we’ll see an America that plays nicer with the UN.  I don’t see any evidence that our country will be anything other than what we are today:  the latest in a long line of brutal, world-dominating empires.

I have an audacity of hope….  I hope the American people can pull together during these up coming tough economic times.  I hope that the American government collapse under the weight of debt it has rung up over the years.  I hope the American government can no longer afford expensive foreign interventions.  This would be a very hopeful start.

Posted by: kenbarker | July 13, 2008

Can more Crack really get you off Crack?

I can lay no claim to academic degrees, dissertations, or other writings to claim the title of an Austrian.  I have been reading though, so that helps a bit.

Bear Sterns and now the GSEs are getting a bailout.  Freddie and Fannie are tanking and it has just been announced that Treasury Secretary Paulson and the helicopter man, Bernanke himself, have a plan.  Bailout.

Does anyone get the willies when they here that word?  Are most of my fellow Americans simply excited to see that someone is taking action?

What does a bailout mean?  It means that a government in towering debt will incur more to support GSEs that promote home ownership regardless of ability or willingness to pay.  Anyone want to venture a guess at how we got into this housing mess?  The FED created a bunch of extra cash by keeping interest rates artificially low.  If the price of something is kept artificially low, then the use of that something is much higher than the market would otherwise have dictated.  Interest is a ’something’ related to borrowing money.  Money is borrowed, in part, to finance the purchase of homes by individuals.

So we have the creation of a bunch of new money….  Where do the GSEs come in to the mix?  They were created by the federal government to promote equality in home ownership.  What does this mean practically?  The market determined barriers to home ownership have been battered down.

In the good old days, your local bank would hold the mortgage for the finance of the purchase of your home.  They would inspect the property and most importantly, they would inspect your financial health.  It seems pretty clear now after the mortgage melt down, that requiring a decent down payment and verifiable source of income is prudent.

In the name of equality, let’s promote home ownership by forcing/encouraging lending institutions to lend to whomever on whatever terms.  Freddie and Fannie will buy the mortgages now, so who cares.

Now back to the announcement:  to fix a problem caused by the FED increasing the money supply, we will print more money.  To fix a problem caused by too much government intervention in the market place, we will increase the government intervention in the market place.

Makes sense…

This sounds wise to some until you translate the plan into street terms.  The patient/victim is heavily addicted to crack and his health is declining.  Quick give him a bunch more crack!

To be an Austrian is to understand, to talk your wife to sleep, and to watch the world burn slowly….

Posted by: kenbarker | April 26, 2008

How far we’ve fallen…

I read a couple of articles this week that give a good indication of where our society now stands.  Are we really the land of the free and the home of the brave?  Does the average American even care any more?  

The sooner that we can get more people disconnected from the normal inputs (TV, mainstream media, etc.), the sooner we can chart a course back to freedom.  Yes, back to freedom…

In case you are just waking up, this great country of ours is no longer the great host of freedom that it once was.  Linked below are two articles that put this point up in high relief.

Rick Fisk does an excellent job outlining the FLDS situation in Texas.  Here is a snippet:

The raid, executed by machine gun-toting, tank-driving county Sheriffs ripped 416 children away from their mothers so that the State child “protective” services could question them and discover whether or not they were being abused. There are some beginning to question whether the state’s action was itself abuse, but these are like cries in the wilderness.

“These are like cries in the wilderness”.  Do you know what a cry in the wilderness sounds like?  Exactly.  No one is listening.  No one in the press even begins to question whether this raid was a mistake.  No one questions whether this is the proper use of state force.  What do we see?  We see people who are weird and who are doing something we find repulsive.  We have no problem when the state acts in aggression against people who are not like us.

Rick continues and drives home another great point about this travesty in Texas.  Who is paying for the raid?  Texas taxpayers.  Who is paying for the attorneys for each of these 416 kids?  Texas taxpayers.  Who is paying for their ‘child protective services’ while the case gets ironed out?  Texas taxpayers.  Who was paying the FLDS men so they could afford so many wives and children?  

Interesting question…  You’ll never hear it asked on TV or in the major newspapers.  It is good enough for us to be spurned to disgust by the polygamy.  It is good enough for us to accept this as normal action for the state.  Here is Fisk with the answer:

The FLDS church has skirted the polygamy laws – not that the laws are legitimate – by avoiding the marriage license. Fine. The state may not recognize unlicensed marriage, but they also have no legitimate legal authority to turn a religious institution into a “legal” institution. However, the FLDS goes a step further by having the “unwed” mothers apply for state welfare. They don’t just want to live their lifestyle in peace, they want to have the people of the State of Texas pay so that they can afford to maintain so many wives and children.  [link in original]

If you are outraged by the behavior of the FLDS men at Yearning For Zion ranch, you should be outraged by this aspect alone.  The rest of their behavior is clearly allowable by our Constitution and Bill of Rights.  Oh, and if there has been forced sex with minors, how about we gather a little more evidence and get a warrant.  The simplest thing that could have been done to impact the FLDS is, as Fisk says, to turn off their funding.

The second article that provoked similar pondering on my part is a piece written by J.H. Huebert discussing the impact our government is having on an ancient cultural tradition in a foreign country.  Here is Huebert on the use of coca leaves in Peru:

Consumed in leaf form, coca has many beneficial effects: It not only relieves altitude sickness, it’s also good for general aches and pains and minor digestive disorders. Like green tea, its benefits seem endless, its drawbacks, none.

Or rather, the drawbacks would be none, except that cocaine, a small amount of which is contained in the leaf, is a drug upon which the U.S. and United Nations have declared war. That means an integral part of the lives of countless indigenous Andean people is under fire from fixated foreigners.

Most recently, the U.N. told South American governments that they should criminalize the traditional use of the coca leaf. Peru’s lawmakers, however, heroically rejected that demand, and dozens of legislators chewed coca leaves on the floor of the Peruvian Congress in protest.

Congresswoman Hilaria Supa told reporters, “The coca leaf has existed for thousands and thousands of years. It’s part of our agriculture, our food and our medicine. It’s sacred. The United Nations doesn’t know our culture. It doesn’t understand our values.”

The U.N.’s outrageous demand is a relatively minor insult compared with our government’s aggressive anti-coca campaign over the past several decades directed against its own citizens.

I encourage you to read his full article to get a better feel for this issue.  The part that made me think of this in light of the Fisk’s FLDS article is in Huebert’s conclusion:

Why would Americans want to force our own failed experiments in drug prohibition on other nations? Maybe it’s because many among us believe we’re better than “those people.”

Here we have that same meme.  Those people are weird or different.  State action is acceptable because they are doing something that we disagree with or are disgusted by.

At what point did personal private behavior become the concern of the central governments?  We have no trouble answering that question when we think of the old Soviet Union or perhaps other more outwardly socialistic societies.  We have a lot of difficulty seeing it in our own country and governance.

These two articles made me wonder how long it will be before I am considered weird and one of “those people”.  How many of us are a phone call away from experiencing the rough side of the states authority?

Posted by: kenbarker | April 19, 2008

The Late Adopter

Well, when I look to the three groups I spend my time with most, I am either the early adopter or the very late adopter.  The guys at the office have iPhones and use cool software like Skitch way before I catch on.

My wife and friends outside of work have no idea what I am talking about when I try to describe the essence of twitter.

I will be among the first and last of my compatriots to get a blog going.  Please enjoy!  Oh, and “First Post!!!”

 

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