A would-be purse snatcher in Chile gets some instant justice.
In Chile, the bus driver is a hero.
In New Zealand? It’d probably be him who was arrested.
[Hat tip Julian D.]
. . . promoting capitalist acts between consenting adults.
A would-be purse snatcher in Chile gets some instant justice.
In Chile, the bus driver is a hero.
In New Zealand? It’d probably be him who was arrested.
[Hat tip Julian D.]
I fear it’s simply a ruse to absorb dissatisfaction rather than the blunt instrument it should be to hit councils around the head, but new Local Government minister Paula Bennett has now
formally launched her Rules Reduction Taskforce aimed at finding 'loopy' property rules and regulations, naming the heads of the new body and setting up a website to solicit examples.
"People can now head to this rules reduction website, to start telling us what bugs them when it comes to loopy rules and regulations," Bennett said.
The “Taskforce” is headed by National MP Jacqui Dean, with no particular qualifications for the task, and Auckland Chamber of Commerce CEO Michael Barnett.
"I'm asking property owners, builders, tradespeople and businesses who have experienced the issues caused by irrelevant or unnecessary regulations, to help draw these to our attention," Bennett said…
"We need to hear from New Zealanders about examples that have got in the way of their building, renovation, landscaping, and home improvement plans, so that we can cut the red tape where it needs to be cut, to help them get on with the job."
I expect little – and still say the single best thing Bennett could do in her portfolio is to reverse the “powers of general competence” that former minister Sandra Lee granted councils -- but I’d still recommend you fill Bennett’s rules reduction website with all your genuine horror stories, of which I know you will have several dozen each.
At least it will give you somewhere to get them off your chest.
Labels: Local Government
The American central bank – the Fed – has exported asset-price inflation to the world. But in recent times there are signs this asset bubble is beginning to burst. In this guest post, Joseph Salerno offers four reasons the Federal Reserve’s asset-price inflation may be nearing its end.
There are strong indications that the remarkable run up of asset prices in the last few years is beginning to run out of steam and may be on the verge of collapse. (We will leave aside the question of whether the asset inflation is symptomatic of a garden-variety inflationary boom or is a more virulent bubble phenomenon in which prices are rising today simply because buyers anticipate that they will rise tomorrow.)
1. The dizzying climb of London real estate prices since the financial crisis, noted in a recent post by Dave Howden, may be fizzling out. Survey data from real-estate agents indicate London housing prices in September fell 0.1 percent from August, their first decline since November 2012. Meanwhile, an index of U.K. housing prices declined for the first time in 17 months. In explaining the "pronounced slowdown" in the London real estate market, the research director of Hometrack Ltd. commented, “Buyer uncertainty is growing in the face of a possible interest-rate rise, a general election on the horizon and recent warnings of a house-price bubble,” which is playing out "against a backdrop of tougher mortgage affordability checks and limits on high loan-to-income lending."
2. Just released data from the Dow Jones S&P/Case Schiller Composite Home Price Indices through July 2014 shows a marked deceleration of U.S. housing prices. 17 of the 20 cities included in the 20-City Composite Index experienced lower price increases in July than in the previous month. Both the 10- and 20-City Index recorded a 6.7 percent year-over-year rate of increase, down sharply from the post-crisis peak of almost 14 percent less than a year ago.
3. More ominously, U.S. Total Household Net Worth as recently reported by the Fed for the second quarter of 2014, reached a record high of $81.5 trillion, over $10 trillion higher than the level at the peak of the asset bubble in 2007. Furthermore, the 2014 figure was $20 trillion higher than the level of the post-crisis — and pre-QE — year of 2008, when asset prices and the real structure of production were just beginning to adjust to the massive capital consumption and malinvestment wreaked by the Great Asset Inflation of 1995-2005.
The increase in household wealth has been driven mainly by the increase in prices of financial assets which was generated by the Fed's zero interest rate policy and its force feeding of additional bank reserves into the financial system via its quantitative easing programs. (See chart below). These policies falsify profit and wealth calculations and give rise to unsustainable investments and overconsumption.
Once interest rates begin to adjust to their natural levels, however, asset prices are revealed to be grossly inflated and collapse. The asset inflation may be reversed even without an increase of interest rates, if people lose confidence in the narratives fabricated and propagated by government policymakers, economists, and the financial commentators to promote the continuation of the inflation in asset markets.
Furthermore it is risible to believe that real wealth in the US in terms of the factories and other capital goods to which financial assets are merely ownership claims, has increased by over one-third since 2008, especially in light of the additional malinvestment and overconsumption caused by monetary and fiscal policy “stimulus” since then.
4. If we look at Household Net Worth (HNW) in historical perspective, we note that, in the chart below, the HNW/GDP (or wealth to income) ratio is now at an all-time high. From 1952 to the mid-1990s this ratio averaged a little more than 350 percent and never went above 400 percent until 1998 as the dot-com bubble was blowing up. It peaked at nearly 450 percent before the bubble collapsed causing the ratio to plummet to slightly below 400 percent, indicating the beginning of the purging of the illusory capital gains created during the asset inflation.
But just as the adjustment was beginning to take hold in 2002, the Greenspan Fed played the deflation-phobia card, driving interest rates to post-war lows and pumping up the money supply (MZM) by $2 trillion from beginning of 2001 to the end of2005.
During this second phase of the Great Asset Inflation, the HNW/GDP ratio again reached a new high before plunging below 400 percent during the financial crisis.
And, tragically, the nascent readjustment of financial markets to the underlying reality of the economy’s shattered and shrunken production structure was yet again aborted by government intervention in the form of the heterodox monetary policies of Bernanke-ism combined with the outsized deficits of the Obama administration. These policies succeeded in driving the HNW/GDP ratio to yet another new high, but without having the expected stimulatory effect on consumption and investment spending.
In sum, I do not expect that the ratio will rise much above 500 percent — Americans have just not saved enough since 1995 to have increased their real wealth from 3.5 times to 5 times their annual income. Nor is there much reason to expect a plateau anywhere near the current level.
Once interest rates begin to rise — and rise they must, whether as a result of Fed policy or not — the end of the asset price inflation will be at hand. The result will be another financial crisis and accompanying recession. The Fed and the Administration will no doubt attempt to bail and stimulate their way out but given the still dangerously enervated state of the financial system and the real economy, it will be like dosing a horse that has already been overdosed to death.
Thus my forecast for the U.S. economy one year to two years out echoes that of Clubber Lang, the villain in the movie Rocky III. When questioned about his forecast for the forthcoming fight against Rocky, Lang replied, “Pain.”
Joseph Salerno is an Economics professor at Pace University, academic vice president at the Ludwig von Mises Institute, and editor of the “Quarterly Journal of Austrian Economics.” He is the author of the book ‘Money, Sound and Unsound,’ a sweeping and nearly comprehensive book on applied Austrian monetary theory.
This article first appeared at the Mises Daily.
I recently had the misfortune of watching your “take the leap” advert on television, apparently aimed at those who have left the security of their jobs to set up a business. In the advert, you claim to know how this feels and that your bank also “took the leap.”
I find this not only an insult to the intelligence, but a bare-faced lie.
At no time since your bank’s inception did anyone in your organisation invest their own capital in your bank. Your bank was started off the backs of the taxpayer, and had continued that way. You risked nothing but the taxpayer’s anger. Thus your future was and still is assured – by the taxpayer. Regardless of how badly managed KiwiBank is, the taxpayer will always be forced to foot the bill.
In short your bank is another example of the State overstepping its mandate, and involving itself in areas of life in which it has no business.
I would therefore ask that you remove this advert from view as a gross misrepresentation of the truth, and an insult to those of us who have risked our own money to start a business -- and who would have rather kept our earnings in our own pockets and our own businesses, instead of having it go to your own dubious enterprise.
Bonaparte visitant les pestiférés de Jaffa, 1804, oil on canvas, 5320mm × 7200mm, Louvre, Paris
Dictator visits the severely afflicted, affecting Christ-like stature.
This is a huge canvas (17 feet high and 23 feet wide) divided in three, portraying the conquering hero as a cross between Christ and Apollo, visiting his afflicted troops in Egypt stricken with the deadly disease.
In reality, he was leaving Egypt in defeat, having order the patients’/prisoners’ death.
Such is the power of great art that the portrait nonetheless sticks.
Guest post by Peter Schiff
In an article in the UK's Telegraph on October 10, veteran economic correspondent and central bank shill Ambrose Evans-Pritchard laid bare the essential truth of the nearly universal current embrace of monetary inflation as an economic panacea. While politicians, CEOs and economists talk about demand stimulus and the avoidance of a deflationary trap, Evans-Pritchard reminds us that monetary inflation is all, and always, about debt management.
Most especially government’s debt management.
Every year the levels of government debt as a percentage of GDP, for both emerging market and developed economies, continue to go higher and higher. As the ratios push out into uncharted territories, particularly in Europe's southern tier, the ability to "inflate away" debt through monetisation remains the only means available to postpone default.
Evans-Pritchard quotes a Bank of America analyst as saying that even "low inflation" (not to mention actual deflation) is the "biggest threat to the dynamics of public debt." IMF Managing Director Christine Lagarde ramped up the rhetoric further when she recently told the Washington Press Club that "deflation is the ogre that must be fought decisively." In other words, governments need inflation to remain viable. It's the drug they just can't do without. [And “deflation” – falling prices -- My God! -- how would they ever pay back those trillions! – Ed]
But because this simple truth is just too embarrassing to admit, politicians and central bankers (and their academic, journalistic, and financial apologists) have concocted a variety of tortured theories as to why inflation is not just good for overly indebted governments, but an essential economic good for all.Click here to read more ... >>
As minister in charge of housing, building and National’s Resource Management Act, Nick Smith can now do whatever he likes to fix the housing affordability crisis.
Now he has his feet under the cabinet table again, he says that as a matter of urgency he will be amending the Resource Management Act to “address” the housing affordability issue.
Nick Smith was in charge of the Resource Management before, back in the nineties, for around three years. He did nothing. He told me it was “a wonderful piece of legislation,” bequeathing it to a generation (upon his then departure) as the handbrake on land supply it has become.
He was in charge of it again just five years ago, when he “reformed” it a first time – delivering a chocolate-coated turd allowing an easier passage for government projects and easier theft of property rights.
He now says, again, after six years in aggregate in charge of this Act – longer than any other minister has had their hands on it – that it now needs “urgent” reform “to ease urban development.” [AUDIO]Click here to read more ... >>
Guest post by Hugh Pavletich
Early 2007, soon after the release of Demographia’s housing affordability survey showing NZ’s housing beccoming increasingly unaffordable, Local Government New Zealand® and the New Zealand Planning Institute® expressed concern about housing affordability, stating:
The New Zealand Planning Institute® strongly supports Demographia’s call for planners, local councils and developers to collaborate more proactively and effectively on the provision of an adequate supply of affordable new residential housing.
Now, some seven-and-a-half years later, 10th October 2014, Local Government New Zealand® issues a media release stating … stating …
Local Government New Zealand (LGNZ) says local government, central government and the business sector need to work together with communities to address housing affordability across New Zealand.
The emphasis is mine. The sappy confusion is theirs.
My own assessment: Local Government New Zealand® is still lost and confused.Click here to read more ... >>
No, this isn’t a Vermeer or Caravaggio – you can tell by the watch and T-short it’s not an old master – this is the work of NZ artist Jude Rae, now living in Canberra.
Can you see why I was so excited when I discovered it over the weekend?
The other day one of this blog’s regular trolls expressed amazement that I’d linked to a post on poverty in good faith. Surely, reasoned the troll, the only reason a blog promoting “capitalist acts” would link to the story of a woman living in poverty would be to point and laugh.
The troll doesn’t get it.
Because it is capitalist acts that are lifting people out of poverty all the time. And that’s one of the things this blog was created to celebrate.
Consider this: capitalism inherited millennia of poverty, and (despite battling statism all the way) delivered two centuries of prosperity unimaginable at any other time in history. That’s a great thing.
Nearly 1 billion people have been lifted out of poverty in the last 2o years alone. That’s a really great thing.
1 billion people lifted out of poverty not through charity, welfare, or the donations of the pope or Gwyneth Paltrow. But through greater capitalism: its markets, its rule of law, its production, its innovations.Click here to read more ... >>
This guest post by Nick Sorrentino is something we might wonder about Labour…
First, what is called “Right ” and “Left” in politics today is increasingly up for grabs. The left-wing/right-wing political paradigm makes much less sense now that a significant part of the population self identifies as “libertarian,” which does not fit into the 20th Century way of looking at politics.
But the question of terminology is less important than whether those who advocate ever-larger government have to keep people “hooked” on welfare of one sort or another in order to win elections. Whether creating dependence on government is in itself a political strategy.
These are pretty fair questions. If the government sends money in the mail, and one comes to rely of that money, would one ever vote for someone who threatens to limit or eliminate that check? Probably not.
Is it fair then to say that statist politicians might actually seek to expand government reliance simply to increase their political power?
I think the answer is obviously yes. But I’ll leave the question open, especially for our lefty readers.
And I’ll ask another related question.
Isn’t the elimination of various types of welfare 100% the ultimate goal? Isn’t that what we’d want ideally? A private sector so vital that the issue of jobs is a non issue? Isn’t that where we’d want to go, and isn’t that what we should be aiming for?
Or are there people who in fact need other people to rely on government to remain in power? Political people who need other humans to remain permanent wards of the state. Modern serfs. And that’s a kind way of putting it.
Here’s a case study, from IBD.com:
Click here to read more ... >>
Brazil's Election Shows How The Left Thrives On Welfare Dependency
A Brazilian economist has shown a near-exact correlation between last Sunday’s presidential election voting choices and each state’s welfare ratios. Sure enough, handouts are the lifeblood of the left…
I haven’t watched it myself yet, but our friend Suzuki Samurai reckons once you get through the intro blather, this is definitely worth a look: PayPal and Facebook investor Peter Thiel drawing lessons from his experiences as a startup investor about successful entrepreneurship and innovation.
Thiel argues that successful people find value in unexpected places. and that entrepreneurs and society benefit most when businesses create something new rather than copy existing models.
As he explains in one book, two TV documentaries, and countless speeches, lectures and articles, the two are not unconnected.
His weapons in this struggle: capitalism, and property rights – and he says the recipe can work just as well for the Middle East. Indeed, he says, it is how the Arab Spring began:Click here to read more ... >>
Science and technology making human life greater: watch a man see for the first time in 33 years, thanks to his new bionic eye.
[Hat tip Julian D.]
"Credentialing, not education, has become the primary business
of North American universities. … One wonders at the docility
of the students who evidently must be satisfied enough
with the credentials to be uncaring about the lack of education."
- Jane Jacobs, author of The Death and Life of Great American Cities
[Hat tip Lawrence Reed]
“The basic and crucial political issue of our age is: capitalism versus socialism, or
freedom versus statism. For decades, this issue has been silenced, suppressed, evaded,
and hidden under the foggy, undefined rubber-terms of ‘conservatism’ and ‘liberalism’
which had lost their original meaning and could be stretched to mean all things to all men.
“The goal of the ‘liberals’—as it emerges from the record of the past decades—was to
smuggle this country into welfare statism by means of single, concrete, specific
measures, enlarging the power of the government a step at a time, never permitting
these steps to be summed up into principles, never permitting their direction to be
identified or the basic issue to be named. Thus statism was to come, not by vote or
by violence, but by slow rot—by a long process of evasion and epistemological corruption,
leading to a fait accompli. (The goal of the ‘conservatives’ was only to retard that process.)”
- Ayn Rand, From ‘Extremism,’ or the Art of Smearing,’ in Capitalism: The Unknown Ideal
“An independent Electricity Authority report may tell us whether some of the $17m Vector admitted to spending on lawyers and experts fighting the Commerce Commission’s methodology for price control, could have been better spent on a few sprinklers and engineers.”
NBR covering the right questions on Auckland electricity – STEPHEN FRANKS
“As explained by the great economist Harold Demsetz, the theory of perfect competition is not a theory of competition at all.”
Competition: Real and Mistaken – Don Boudreaux, CAFE HAYEK
Peter Thiel on the Virtues of Monopoly – TRUTH ON THE MARKET
Will the NZ left ever recover from the fact the National Party now embodies all the socialism the public is able to support?
NZ election 2014 post-mortem – LIBERTY SCOTT
“It is much easier to do to explain your defeat at elections on a conspiracy, rather than on your ideas having been tried and failed time and again.”
How much of the political spectrum is neoliberal (and under the Svengali influence of the Mont Pelerin Society)? – Jim Rose, UTOPIA, YOU ARE STANDING IN IT!
“Self-determination of the manner and means of one's death is an individual’s basic right. But unfortunately politicians follow a dreadful pragmatism, rather than a principled view toward our freedom, so let me provide it.”
Why This Government Urgently Needs to Pick Up Maryan Street’s Euthanasia Bill – Mark Hubbard, LIFE BEHIND THE IRON DRAPE
“The problem of the deserted wife” is what started us down the DPB slippery slope. But check out the size of that problem…
ODT: 100 years ago – LINDSAY MITCHELL
“One tool in the compact cities toolbox is boosting residential densities along arterial roads. It’s a tool that should be used sparingly.”
Hardening Arteries: Intensification and Inner City Congestion – Phil McDermott, CITIES MATTER
“QThere’s a story that charging your phone in your bedroom make you fat.
“A: Yes, there is.
“A: Because it looked like a good headline.”
…and to divide the light from the darkness – Thomas Lumley, STATS CHAT
“You ask why I cannot “be more practical about trade.” My answer is that unconditional support for unconditional free trade is the most practical policy that is practically available…”
Impractical Practicality – Don Boudreaux, CAFE HAYEK
The scientific method in 61 seconds, delivered by the great Richard Feynman:
“Steven Guilbeault of Greenpeace said that anything proved AGW; Guilbeault stated: 'Global warming can mean colder, it can mean drier, it can mean wetter, that's what we're dealing with.'”
Man-made Global Warming Causes everything including a freezing Antarctic – AUSTRALIAN CLIMATE SCEPTICS’ PARTY
“Climate scientists have confessed they are baffled – yet again – by another all-time record area of sea covered by ice around the Antarctic coasts.”
Antarctic ice reaches ALL TIME RECORD HIGH: ‘Climate scientists have confessed themselves baffled’ – THE REGISTER
Antarctic Sea Ice Reaches New Record Maximum – WATTS UP WITH THAT
September Snow Cover Was Highest On Record In North America – STEVEN GODDARD
“A new paper published in the Open Journal of Atmospheric and Climate Change by renowned professor of physics and expert on spectroscopy Dr. Hermann Harde finds that climate sensitivity to a doubling of CO2 levels is only about 0.43C, about 7 times less than the IPCC claims, but in line with many other published low estimates of climate sensitivity.”
New paper finds climate sensitivity to CO2 is only 0.43C, about 7 times less than the IPCC claims – HOCKEY SCHTICK
“'The scientific reality is that virtually every claim — from A to Z — of the promoters of manmade climate fears is falling short or going in the opposite direction from reality.'”
Climate Truth Fact File: 2014 – CFACT
“Man-made climate change is the only scientific theory where
the people who point to evidence are called deniers and
conspiracy theorists, yet the people who stick to a computer
models that have all failed, are called the ones defending ‘science.’”
- Carbon Dioxide
“The Sceptical Science kidz and Trenberth think that the deep ocean has absorbed all the heat that isn’t showing up in the atmosphere, and that’s [why] we have “the pause”. Well, that’s busted now according to ARGO data and JPL and it has NOT gone into the deep ocean.”
The “heat went to the oceans” excuse and Trenberth’s missing heat is AWOL – deep ocean has not warmed since 2005 – WATTS UP WITH THAT
No, the missing heat isn’t hiding in the deep ocean, either – ANDREW BOLT
New paper is a brazen & unjustified attempt to claim the oceans have warmed 'more than we thought' – HOCKEY SCHTICK
“Now we know why alarmists like to use 1979 instead of 1975 to start their graphs.”
Climate Change LIES – CARBON DIOXIDE
“Temperatures at the Melbourne Regional Office were the hottest ever this past year, with their thermometer located five feet away from the asphalt of Victoria street…”
Melbourne Asphalt Was The Hottest Ever – CLIMATISM
“If you put the government in charge of the Sahara
Desert, in 5 years there'd be a shortage of sand.”
- Milton Friedman
“Climate-change policy does not turn stones into bread. Hoffman’s claims violate both common sense and the peer-reviewed economics literature. Adding restrictions on businesses and households takes away options, and make us poorer.”
Stones Into Bread: False Claims of CO2 Taxation – Robert Murphy, MASTER RESOURCE
“’It’s absurd to rely on economies based on constant growth on a finite planet.’ But, is it?”
Finite Resources and Infinite Growth – Andrew Leach, RESCUING THE FROG
Environmentalism Refuted – George Reisman, MISES DAILY
“But equally there’s no hard limit on how large that economy can become as long as we keep finding new ways of adding value.”
When Physicists Do Economics We Seem Not To Get Economics As The Result – Tim Worstall, FORBES
“’Alienation’ and ‘disadvantage’ simply cannot explain why jihadist Numan Haider tried to kill two Melbourne police officers.”
Costello: the alienation excuse for jihadists won’t wash – ANDREW BOLT
“Now consider the issue of the moment: the fact that some of our sons and daughters are so alienated from this country that they are prepared to cross half the world to take up arms against our values, our allies and our interests. Not just in Syria and Iraq, either. British Muslims have been picked up on the battlefields of Afghanistan and Pakistan. Two were suicide bombers in Gaza….
“What, then, should we do? We should offer something better. If British identity is systematically derided and traduced, if British history is presented as a hateful chronicle of racism and exploitation, if British patriotism is seen as knuckle-headed, don’t be surprised if many … grope back towards older patriotisms.”
The way to defeat British jihadis is to offer something better – Daniel Hannan, TELEGRAPH
“25-year-old, middle-class teacher who joined ISIS - then fled after seeing horror of beheading.”
The middle-class teacher who joined ISIS - then fled – MAIL ONLINE
“Alberici asked Doureihi specifically whether [Australian groupp] Hizb ut-Tahrir supports Islamic State fighters, not once, not twice… but 16 times!!”
This Is How Not To Answer When Asked “Do You Support Islamic State?” – BUZZFEED
Tammy Bruce – “Gee, I wonder how that happened?”
Satellite photos reveal massive damage at suspected Iran nuke facility – TIMES OF ISRAEL
"Affleck comes off as hostile and dogmatic in his attacks on Harris, and thereby manages to illustrate one of the purposes of the “Islamophobia” trope. Through intimidation and smear tactics, it aims to shut down desperately needed analysis and discussion of the ideas that in fact animate the global jihadist movement."
Never go full Affleck.
The 'Islamophobia' Smear: Ben Affleck's Failed Takedown of Sam Harris – Elan Journo, VOICES FOR REASON
What Does Ben Affleck’s Defense of Islam Reveal? – Michael Hurd, CAPITALISM MAGAZINE
“Democracy is a great brake, but it is a terrible steering wheel.”
– Guy Herbert
“While the on-going interventions by the Federal Reserve have inflated asset prices, the only real accomplishment has been a widening of the wealth gap between the top 10% of individuals that have dollars invested in the financial markets and everyone else.”
Obama's Economic Recovery In Pictures – ZERO HEDGE
“The reserve currency status of the dollar has cost the United States as many as six million jobs.”
The Rise And Fall And Rise And Fall Of King Dollar, Part 1 – Ralph Benko, COBDEN CENTRE
The Rise And Fall And Rise And Fall Of King Dollar, Part 2 – Ralph Benko, COBDEN CENTRE
“I don’t mean to burst your bubble, but the leader we’re talking about isn’t the President of the United States.”
Nation’s Leader Rejects Keynesian Economics, Acknowledges that Real Jobs Are Created by the Private Sector – Daniel J. Mitchell, TOWN HALL
“It is impossible to square the concept of velocity of circulation with one simple fact of everyday life: we earn our salaries once and we dispose of it. That’s a constant velocity of roughly one.”
The velocity myth – Alasdair Mcleod, COBDEN CENTRE
“The new accounting rules mandated by the EU’s statistics office, Eurostat, include revenue from illegal activities related to drugs trafficking, prostitution and cigarette smuggling… illegal activities are now the difference between economic growth and economic recession in Europe.”
Presenting the ‘Hookers and Blow’ GDP component for select European economies – Simon Black, SOVEREIGN MAN
“One day he's the king of debasing green pieces of paper, and the next he's talking about gold.”
Is it Alan Greenspan or Alan Goldspan? – ECONOMIC POLICY JOURNAL
“Every student of economic history knows the Austrian tradition had all but died out by the middle of the 20th century, supplanted by Keynesianism and a faith in central planning. Right? Wrong.”
Economic Historians Are Wrong About the Austrian School, Says Israel Kirzner – Stephanie Slade, HIT AND RUN
What really ended the Great Depression? (Lots of links!)
The Truth About the Great Depression – FREEDOM KEYS
“This. This and more this. Great conversation, and great project!”
Awesome: Austrian Economist Takes on Bestselling College Text, Chapter by Chapter – TOM WOODS
"The term open minded is an invalid package deal, it is used to equate the
thinker with the sceptic and thereby to give sanction to the latter. But the
thinker who actively integrates evidence to arrive at new ideas has nothing
in common with the sceptic who feels free to assert possibilities without
required evidence.... a mind that is open to any possibility regardless of
it's relation to the total context of knowledge is a mind detached from
reality and therefore closed to knowledge."
- David Harriman, The Logical Leap
“Envious people believe they will never be strong, capable or content, and it becomes a self-fulfilling prophecy. If I had the power to wish away one – just one – faulty aspect of human nature, it would be envy and jealousy. Nothing contributes more to mental illness and general human destruction.”
The Antidote to Envy – DR HURD.COM
“For the first time, scientists have been able to reverse memory loss in Alzheimer patients.”
Memory Loss Associated with Alzheimer’s Reversed for First Time – NEUROSCIENCE NEWS
“‘Addiction’ is something most addicts grow out of.”
Most People With Addiction Simply Grow Out of It: Why Is This Widely Denied? – SUBSTANCE.COM
“As one of my philosophy professors noted: "I have never experienced a mind that was not in close proximity to a brain."”
Proof of Life After Death? Maybe Not. – Ronald Bailey, HIT AND RUN
“An animal liberationist group storms into a restaurant and pleads with people to stop murdering innocent chickens. Go ahead and laugh. But if you think they're wrong, do you know why?”
Do We Need a Declaration of Independence for Chickens? – Michael Hurd, DR HURD.COM
“To stop sweatshops, we shouldn't outlaw them—they're sometimes the only available employment for those who live in poverty. Instead, we should change institutions in order to spur economic growth and lift sweatshop workers out of poverty.”
Cliché #21 – "Capitalism's Sweatshops and Child Labor Cry Out for Government Intervention" – FOUNDATION FOR ECONOMIC EDUCATION
“No matter how much capitalism develops in the direction of direct worker control and individual sovereignty, reducing the role of large-scale enterprises and monopolies, the socialists still complain with the old bromides of exploitation while calling for government to crack down. So much for revolution. It’s the digital-age capitalists who have recaptured the revolutionary idealism that socialists long ago set aside."
Who's Afraid of the Workers' Revolution? - FOUNDATION FOR ECONOMIC EDUCATION
““Never think of enemies a moment longer than is necessary to fight them.”
Objectivism and the Amount of Anger – Tony White, PERIPATETIC THOUGHTS
This could really help parents...
We Turned Off the TV – HUFFINGTON POST
“A great summary of the most recent studies into outcomes from Montessori education.”
Does it Work? What Research Says About Montessori and Student Outcomes – NATIONAL CENTER FOR MONTESSORI IN THE PUBLIC SECTOR
Definitely worth all the fuss!
Craft Beer: What's all the fuss about? – Matthew Martin, NZ HERALD
“Wright first arrived in Japan in 1917 and that same year he met Arata Endo – 27 years old at the time and fresh off the team working on plans to construct Meiji Shrine.”
The importance of a good wedding photographer.
[Hat tips Maria Montessori Education Foundation, Anoop Verma, On Liberty Street, Maria Montessori Education Foundation, Lawrence Reed, Montessori Australia, Friends of Kebyar, Carol Potts, Betsy Speicher, Bosch Fawstin, slone, Quotable Right, Stephen Gordon, Rudolf E. Havenstein, Rick Gator, Feisty☀️Floridian]
Thanks for reading,
Have a great weekend!
Guest post by Bill Bonner, continued from yesterday (check out part one here).
Yesterday, Bill Bonner looked at some of the destructive effects of Zero or Negative Interest Rate Policy (ZIRP or NIRP), and the issuing of all that new debt . Today he continues …
Neverland - Part 2
"There can be nothing more unreal in
its pretensions than debt currency itself."
— Charles Holt Carroll (1860)
Ex Nihilo Nihil Fit
I spent much of the spring at our ranch in Argentina. I was cut off from the flow of news and opinion. No telephone. No TV or radio. But I was still thinking… in a desultory way… about how you can get something from nothing.
“Out of nothing comes nothing,” is the expression. It expresses a deep truth, much like the law of conservation of matter and energy. You can’t get something from nothing. You can’t get rid of something once you’ve gotten it, either. That is, you can’t get nothing from something. As you know, the law of conservation of matter and energy tells us that you can just change the way it is expressed… where and how it shows up.
Getting something out of nothing violates the laws of the universe. It doesn’t seem possible. And of course, it’s not. Free money is oxymoronic. Like an “honest dollar” or a “reclusive film star,” it doesn’t exist.
So, if you think this free money coming from the Fed has no cost, you’re probably going to be surprised… and disappointed. The bill for it is out there somewhere. In the future. Debt is essentially a financial arrangement between the past and the future. And eventually, the future comes.
I was thinking about this when I was helping with the roundup at our ranch in Argentina. At the time, I couldn’t figure it out. How can you get something from nothing? Who gets the bill? How? When?
Then a 2,000-pound bull charged me.Click here to read more ... >>
Labels: Bill Bonner
In a world of virtually free money – the money of near-Zero or even Negative Interest Rates excreted by central banks – the clear-eyed man could be king. But not if the well-connected man has blinded him first, says Bill Bonner in this guest post.
We’re in an Economic Neverland, Part 1
Anything is possible in a NIRP (negative-interest-rate policy) world.
When central banks are resorting to negative interest rates, as the ECB did recently, everything goes topsy-turvy. A trillion dollars here… a trillion there. Pretty soon we’re talking about the end of the world as we have known it.
In the US, in the first seven decades of the 20th century, the relationship between debt and GDP was fairly stable. Debt was at about 150% of output. Then Nixon severed the link with gold in 1971… and debt grew even faster than GDP. Right now, the ratio of debt to GDP is 370%.
By my calculations, the excess over what is needed to generate growth in the post-war years is about $33 trillion. Annual US GDP is about $17 trillion. At 150% of output, we’d have debt of about $26 trillion. Instead, it’s $59 trillion. We’d have $33 trillion less debt, in other words, if we’d stuck to the 150% ratio.
The central question we asked at the recent Global Partners’ Reunion in France was: Why didn’t we stick to the old ratio? And where does all the explosion in new debt lead?
For example, Elizabeth and I were recently wondering if we should upgrade some apartments we own. What if we spend $50,000 on each of them? How much more in rent would we have to get to make the investment worthwhile?
The answer is it depends on the cost of capital. If it costs you 4% a year to borrow money, you’d need a return somewhere in excess of $2,000 a year—or about $170 a month—to make the improvements pay off.
These are dumpy apartments—renting for about $800 a month each. But it’s a good area. Up and coming, apparently. Putting $50,000 into each one would mean a total investment in the building of about $400,000. And there would be a loss of income while the work was going on.
Still… the investment seemed worthwhile, largely because we wouldn’t have such a dumpy place next door to our house. But the key question is always: What is the real cost of capital? It makes financial sense only if your return on investment is greater than your cost of money. That’s why this is probably the single most important question in a capitalist economy.
The interest rate is often called “the hurdle rate.” Because, if the return on your investment can’t jump the hurdle, it means it’s not a good idea. Instead of adding to the wealth of the human race, it subtracts from it. Net result: a loss of capital. If you don’t know what the hurdle rate really is, you are likely to do a lot of dumb things… and likely to get poorer as a result.
What is the real cost of capital now? What’s the hurdle rate? Does anyone know?
Out on the edge of the Liberian wilderness, the Firestone company – the tyre company, with rubber plantations in the West African nation ravaged by Ebola – has been showing the way in treatment and containment of the virus. Not because any special knowledge, but because they’re making best use of the knowledge they have.Click here to read more ... >>
Guest post from our roving Asian correspondent Suzuki Samurai
Wasn't it easy a few years back to see who were the good guys and who were the bad guys? Our team were the free(r) societies. Their team, the dictatorships. Or another way of saying: capitalists vs communists. The Hong Kong/PRC & West/East German borders were the front lines in an ideological battle (which at close range must have seemed like an imminent fighting battle).
We in the West proclaimed that what set us apart were free speech, free movement, free(ish) markets,rule of law and democratic elections; and while not the whole truth it’s still mostly true.
I say mostly in this context because rich, prosperous, flourishing Hong Hong had all those attributes except the last: democratic elections.
Yep, it turns out no elections were necessary in a society based on the sound principles of low taxes, low regulation, free movement, and rule of law – it made them rich extraordinarily quickly. Who'd want to vote that away? Well quite a few folk if elections around the world are any indication.
So what are we to make of the Hong Kong 'democracy' protests? On one hand I find myself saying, 'go get ‘em tiger,' in support of the protesters. On the other, I'm wondering if they should be careful what they wish for.Click here to read more ... >>
Things happen slowly on Planet Key.
Seven years ago at the National Party conference, before he was even Prime Minister,
Mr Key signalled a National-led government would improve housing affordability by embarking on a programme of personal tax cuts, changing the building regulatory regime, keeping interest rates lower, reforming development rules to free up land, and allowing state house dwellers to buy their homes.
So seven years later, the promises of jam tomorrow all remain the same.
All but one.Click here to read more ... >>
“You’re still working, you said…?”
“Well, it depends. Work now has to be interesting. I'm finding the bureaucracy is getting so over-bearing. The amount of time you have getting delight from what you do diminishes when you're mucking round with councils all the time.
”It used to be so easy. You used to take some scruffy drawings and get a permit in a week. Nowadays you've got resource consents and building consents and you've got to get a consent at the end for the thing as well. It just takes so long…”
Guest post by Frank Shostak
The US Federal Reserve can keep stimulating the American economy because inflation is posing little threat, Federal Reserve Bank of Minneapolis President Kocherlakota says. “I am expecting an inflation rate to run below two percent for the next four years, through 2018,” he says. “That means there is more room for monetary policy to be helpful in terms of … boosting demand without running up against generating too much inflation.”
On the face of it, he’s right. The yearly rate of growth of the official consumer price index (CPI) stood at 1.7 percent in August against two percent in July. According to our estimate, the yearly rate of growth of the CPI could close at 1.4 percent by December. By December next year we forecast the yearly rate of growth of 0.6 percent.*
Does Demand Create More Supply?
It seems however that the Minneapolis Fed President holds that by boosting the demand for goods and services — by means of additional monetary pumping — it is possible to strengthen economic growth. He believes that by means of strengthening the demand for goods and services in this way that the production of goods and services will follow suit.
But why should that be so?Click here to read more ... >>
Here’s what’s happening this Thursday evening at the Auckland Uni Economics Group:
Competition is one of the most important ideas in economics. But what is competition? And how have economists defined it? Is it a certain state of a market or is it the behaviour of people within a market?
This week, we bring you a presentation by one of New Zealand's leading thinkers, Dr. Oliver Hartwich, the Executive Director of The New Zealand Initiative, on the fundamental economic concept of competition – and how so many economists get it so wrong.
Date: Thursday, October 9
Location: Case Room Two, Level Zero, Business School (OGGB)
(plenty of parking under the Business School, entrance off Grafton Rd)
We look forward to seeing you there.
UoA Econ Group
Check us out on FaceBook: University of Auckland Economics Group
About Dr Hartwich:
Dr Oliver Hartwich is the Executive Director of The New Zealand Initiative, an independent public policy think tank supported by chief executives of major New Zealand businesses. Before joining the Initiative, he was a Research Fellow at the Centre for Independent Studies in Sydney
When left the UK to take up his new job in Sydney, then Conservative MP David Cameron said “the sooner he gets on the ship the better.” At the time he was the Chief Economist at Policy Exchange (London), and an advisor to the UK House of Lords.
Dr Hartwich is a frequent media commentator and writes a popular Business Spectator column. His articles have been published by major newspapers in Britain, Germany, Switzerland, Australia and New Zealand.
“Education was limited to a special ‘Blacks’ year 4 … yet the
community flourished in its attraction to education through
the study of theology, and the words and books from the
missionaries. Upon reflection I often wonder what would
have been our history had those books been books of science,
maths or an encyclopaedia of ideas.”
- Arabella Douglas, ‘Glory Glory to South Sydney,’ FOOTY ALMANAC