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Austrian Economics
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A rich history of economic thinking
A rich history of economic thinking

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Can you guess who said this?

"I believe that if the rhetoric that portrays international trade as a struggle continues to dominate the discourse, then policy debate will in the end be dominated by men like [protectionist author of The Trap Sir James] Goldsmith, who are willing to take that rhetoric to its logical conclusion.  That is, trade will be treated as war, and the current system of relatively open world markets will disintegrate because nobody but a few professors believes in the ideology of free trade.

"And that will be a shame, because for all their faults the professors are right.  The conflict among nations that so many policy intellectuals imagine prevails is an illusion; but it is an illusion that can destroy the reality of mutual gains from trade."
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Another Austrian economist with an outstanding track record that I hold in high esteem. Very much worth listening to (or rather: very costly not listening to).

Same example from YouTube:
- Marc Faber "Everything collapses in 5 - 10 years", very good interview with some important key statements
- Marc Faber US Dollar simply Doomed Currency, about the future value of the dollar
- Faber Likes Gold, Silver; Will Keep "Accumulating" Gold, about precious metals (at the very end of the interview)

His website: www.gloomboomdoom.com
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From Robert Wenzel's speech at the Federal Reserve:

"In conclusion, it is my belief that from start to finish the Fed is a failure. I believe faulty methodology is used, I believe that the justification for the Fed, to bring price and economic stability, has never been a success. I repeat, prices since the start of the Fed have climbed by 2,241% and there have been over the same period 18 recessions. "
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From Professor Mark Perry, a reminder that "local knowledge" is the stuff of an economy.
"Central planning is as futile as trying to strap on wings and fly like a bird – and potentially as calamitous.

Of course, few people today advocate full-scale central planning of economies. But smaller-scale interventions suffer the same problems as do attempts at central planning: inevitably inadequate knowledge of how to intervene. Asserting, for example, that the key to economic recovery is to “increase aggregate demand” is a fiction borne from observing a true, but only large and inadequate, fact about successful economies: most producers, at any given time, are able to sell most of what they plan to sell. But to leap from this observation to the conclusion that “therefore, government can stimulate economic recovery by increasing aggregate demand” is akin to a human being costumed-up as a bird and leaping off of a mountaintop, flapping away, hoping, hoping, hoping to fly."
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Of those without bank accounts, 25 percent said cost was a factor, as seen in the chart below. But one of the reasons that costs are high is that banks incur regulatory expenses for every customer, in large part because of anti-money laundering requirements, and then pass those on to consumers.
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What is "stimulus" as defined by the US government in recent decades? It is the government's deciding that you are not spending your money wisely, so it will decide how it is to be spent.
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Which is preferable for man and for society, abundance or scarcity?

"What!" people may exclaim. "How can there be any question about it? Has anyone ever suggested, or is it possible to maintain, that scarcity is the basis of man's well-being?"

Yes, this has been suggested; yes, this has been maintained and is maintained every day, and I do not hesitate to say that the theory of scarcity is by far the most popular of all theories. It is the burden of conversations, newspaper articles, books, and political speeches...

Do we not hear it said every day: "Foreigners are going to flood us with their products"? Thus, people fear abundance.

--Frederic Bastiat, 1845
http://www.econlib.org/library/Bastiat/basSoph1.html#S.1,%20Ch.1,%20Abundance%20and%20Scarcity
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Bastiat on the role of exchange, money, and government:

"We must remark, also, that the constant appearance of money in every exchange has overturned and misled all our ideas; men have ended in thinking that money was true riches, and that to multiply it was to multiply services and products. Hence the prohibitory system; hence paper money; hence the celebrated aphorism, "What one gains the other loses"; and all the errors which have ruined the earth, and imbrued it with blood. After much research it has been found, that in order to make the two services exchanged of equivalent value, and in order to render the exchange equitable, the best means was to allow it to be free. However plausible, at first sight, the intervention of the State might be, it was soon perceived that it is always oppressive to one or other of the contracting parties.

When we look into these subjects, we are always compelled to reason upon this maxim, that equal value results from liberty. We have, in fact, no other means of knowing whether, at a given moment, two services are of the same value, but that of examining whether they can be readily and freely exchanged. Allow the State, which is the same thing as force, to interfere on one side or the other, and from that moment all the means of appreciation will be complicated and entangled, instead of becoming clear. It ought to be the part of the State to prevent, and, above all, to repress artifice and fraud; that is, to secure liberty, and not to violate it."
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