The case for gold in our time
I hear many people predicting gold will drop below $500. If it does, it would represent the buying opportunity of a lifetime, perhaps of several lifetimes. Those who believe gold should not continue its bull market advance believe we are entering a long-term economic bust that will reduce demand for everything other than money and consumer essentials. Indeed that would be true should the government sit idle, and they’re not, but that’s a topic for another post. Even if we experience a long term quasi-deflationary bust, here is where their analysis is mistaken — they presume people will always consider dollars the best form of money. Some say, “inflation in what you need, deflation in what you don’t” and since gold isn’t edible the price should drop, but that assumes people don’t need savings. Of course people need savings, especially rich people, and when you have a distribution of income as unequal as today, that means an enormous amount of savings may be looking for a new home. “I’ve seen kids making guns with their bare hands. In Caves.”
Very interesting look at the tribal areas of north west Pakistan. John Taylor Gatto – Weapons of Mass Instruction
His book, Weapons of Mass Instruction, is essentially a rant outlining his hatred of forced public education. It’s compelling and resonates with many of my personal experiences, for example read Are Universities Destroying the Economy. Even if you disagree with the conspiracy element of his hypothesis (public schools were not institutions created with the intent to educate, but to condition people to become obedient consumers and workers) you must take his opinions seriously, because they have the ring of truth. Watch his 1991 documentary, Classrooms of the Heart. The last greatest hope: technology
I was shopping for a new computer and office chair a few weeks ago and was struck by how absurd prices have become. I bought a fully loaded quad-core PC for about $500 and was stunned to find the best office chairs cost even more! What kind of crazy world do we live in? Consider all the research, engineering, design, manufacturing, assembly, shipping from the four corners of the earth… required to build a computer, then compare that process to a few pieces of plastic/metal with a cushion wrapped in some cloth or leather. Are you kidding me? That’s an astounding testament to the incredible productivity of the technology sector and those who work in it. Every other industry sucks in comparison, you heard me. Government steals money from bankrupt people to waste on frivolous projects
This is my entry to Nick Rowe’s challenge to come up with a model demonstrating the damages of fiscal stimulus. The belief in government stimulus requires us to believe the previous level of demand is sustainable, desirable and not declining for some fundamental reason. That isn’t necessarily a question of economics, you can’t plot culture on a chart. If people were comfortable in previous decades living with more debt-based consumption and a bias towards equities instead of savings, but the culture changes and people are no longer comfortable with that formula, the economy has changed for a very real and fundamental reason. If people want less, why should the government force feed us things we don’t want? If people are determined to save and the government threatens to destroy savings (with negative interest rates or some other stupid ideas) people will simply find alternate means to save. Maybe they will hoard food or gold and cause other problems like shortages and hunger. Commanding Heights (PBS)
The Battle for the World Economy – Part 1 of 3 Eight people sipping wine
The most interesting part of this documentary, in my opinion, is Robert Reich’s conclusion that if we will concede to a consumer based politics, we might as well let business run the show because they can do it better. I’m sure he meant that statement as a joke, but is it not exactly where we have ended up? Was it a joke or an unconscious admission of guilt, a Freudian slip? I’m sure everybody will take from these videos whatever re-enforces their own pre-existing beliefs. I see evidence that big government politics, regardless of old or new, by Robert Reich’s own admission, leads inevitably to corporatist fascism. If you want to get elected you must appeal to desires and nobody does it better than Madison Avenue, hence the alliance of government and business we’re suffering from today that strangles capitalism and innovation. If you want to punish irresponsible big business executives, you must first defeat their foot soldiers in government manning the front lines. They are together, defending their power, against our best interests. part 1 Overview of America
The documentary is from the John Birch society. It’s a bit extreme on some fronts, but an interesting perspective. part 1 Is Keynes the true father of the Venus Project ideology?
Arthur Keynes is the man largely responsible for creating the economic theories that justify our current form of big government capitalism. He is the man most commonly cited to defend fiscal stimulus and bailout packages and is followed by most modern economists, but is he the true father of abundance, and the current economic collapse the attempt to create abundance has created? |
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