What is truth?

Posts tagged ‘Keynesian economics’

The “Anti-Economist” Calls Bitcoin the Anti-Social Network

From boombustblog.com

Paul Krugman wrote an anti-cryptocurrency Op-Ed piece in the NY Times titled the “Anti-social Network“. Now, I know the Times needs to sell ad space and subscriptions, hence technical accuracy may not be exactly what they are going for, but Mr. Krugman (the classical Keynesian economist type – I don’t particularly subscribe to such schools of thought, I guess I’m not educated enough) has spewed so many inaccurate statements, false facts and just plain old indications of his total misunderstanding of the subject matter one would think it would behoove the Times to either have him issue corrections (or, since it is Op-Ed after all) have someone such as my self (you know, maybe a little less academically involved) come after him and clean up a little.

Now, where shall I start? To quote Mr. Krugman:

So how is bitcoin different? Unlike credit card transactions, which leave a digital trail, bitcoin transactions are designed to be anonymous and untraceable. When you transfer bitcoins to someone else, it’s as if you handed over a paper bag filled with $100 bills in a dark alley.

I don’t think that’s true Mr.Krugman. Let’s refer to Wikipedia’s write-up on the Crypto……………… full article at source: http://boombustblog.com/blog/item/9178-the-anti-economist-calls-bitcoin-the-anti-social-network


Is there anybody out there who can help set up a Bitcoin currency for us In Ireland????

The Tragedy of the Euro! What about Germany?

By: GoldSilverWorlds

Brecht Arnaert writes: 2012 has been a year of great turmoil for the euro. But our economy is not the only thing that is in crisis. Our economic theory is too, and even more so: for decades macro-economic policy has been conducted within a Keynesian framework, and while no Keynesian economist has predicted this crisis, or even is able to explain it’s causes, we are still listening to them today to get out of the mess they brought us into. I would say that this is a problem of legitimacy. I am telling this not only as an economist. I am a defender of liberty too. What is happening in Europe right now should not only worry economists, but every freedom-loving citizen. As we speak, measures are being taken to take away our liberties in a way that Hayek described so well in his “Road to serfdom”: each government intervention requires more government intervention, until no freedom is left anymore. Step by step our property rights are being eroded, and, not too far from here, in Brussels, a giant Moloch called the European Commission is centralizing powers with a speed that would have been unimaginable before the Treaty of Lisbon.

Let us start with some theory about how value is created, what the origins of money are, and how the euro is the right answer to the wrong question.


Economics is the study of value creation. It does not consider itself with the question what values men should pursue, nor how value should be shared in a community. These are questions for respectively moral and political scientists. Economists take the valuations of individuals as the given and goes from there. A value is something one wants to gain or keep, and economics studies the means people use to achieve these ends. About the desirability of those ends, it has nothing to say.

Mainstream economists largely ignore this definition of economics, and even turn it around. They regard their valuations as the thing to be achieved, and the valuations of individuals as the means to it. Instead of analyzing how individuals create value, they devise policies to make them conform to their one chief value: stability. Macro-economic policy has only one purpose: an economy “in equilibrium”. The use of government intervention is their way to push individual valuations towards this one pre-set value.

It is tempting to judge these policies form a moral angle, but that is why this lecture has two parts. As an economist, the only question I have to answer is: “What policy creates the most value?” If it would turn out that mainstream economics is right, then I have no story. But if it can be proven that macro-economic policy actually destroys value, then the best macro-economic policy might be that we have none. This is actually the thesis I will be defending tonight.

Full article at source here:  http://www.marketoracle.co.uk/Article37484.html

ECB Becoming Twin of Fed

By Frank Suess


“We are in danger of being overwhelmed with irredeemable paper, mere paper, representing not gold nor silver; no sir, representing nothing but broken promises, bad faith, bankrupt corporations, cheated creditors and a ruined people.” − Daniel Webster, speech in the American Senate, 1833

Increasingly, Mario Draghi, the European Central Bank President, is showing his true colors. He is clearly on the road to becoming Europe´s clone of Ben Bernanke. That said, Draghi is pushing hard against Germany´s (Merkel´s) resistance of running full-speed down the Keynesian road of monetary inflation.

In this context, our regular Mountain Vision contributor, Fredrik Boe-Hanssen

full article at source:http://www.thedailybell.com/4232/Frank-Suess-ECB-Becoming-Twin-of-Fed

Monetary System In Ruin, Signals Of Systemic Collapse

By: Jim_Willie_CB

Wow!! The billboard signals of extreme crisis are overwhelming. Three years
of near 0% with no recovery. A full year of ample USTreasury and mortgage bond
monetization with no recovery. Tons of cash aid deliveries to the big US banks
with no recovery. Some key corporate nationalizations with no recovery. Oodles
of errant stimulus programs with no recovery. Some important misdirection in
home loan aid initiatives with no recovery.

The US Federal Reserve admits it can do nothing more as a recovery remains elusive. The USGovt is paralyzed by disguised fascist warmongers opposed by disguised marxist collectivists, but intent on maintaining the status quo among bank fraud. An approved accounting fraud directive is kept in place to present a picture of bank solvency.
Intermediate credit markets have come to a standstill.

The US stock market is in tatters. The USTreasury Bond market is the only
conventional rally at work. And with all these programs, developments, and
events, the USEconomy moves toward a recession with relentless determination
and purpose, In today’s age of lying about price inflation by at least 5%, that
means the recession is about to turn into a Minus 5% Recession after never
exiting the recession recognized in 2009.

The billboard messages are dire, ugly, dreadful, dangerous, and full of destruction, typical of systemic failure. Too bad the Keynesian textbooks do not have a chapter on banking
system insolvency, or one quarter of the households living in negative equity,
or central bank toxic paper pits, or global currency war, or confiscation of
tyrant accounts. The ineffective monetary & fiscal policy has ushered in
the nightmarish systemic failure. That is what is occurring.

Full article at source: http://www.marketoracle.co.uk/Article30577.html

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