Calls to reform, audit, and even eliminate the Federal Reserve have been growing in recent years. We certainly call for an end to the Fed and I encourage anyone interested in monetary policy and the Federal Reserve to read Free Prices Now by ACC co-founder Hunter Lewis. Hunter is a scholar of the highest order and a remarkably successful financier. If you want to understand the sins of the Federal Reserve read his book.
But many people already understand the sins of the Fed and many of these people gathered in a counter summit to the party the Federal Reserve was having this week in Jackson Hole Wyoming. One of the people criticizing the Fed was Benn Steil who, believe it or not, is a director of international economics at The Council on Foreign Relations.
Crony capitalism is a bipartisan endeavor. The Dems often get dinged pretty hard because they are particularly inclined toward mixing business and politics (and make no bones about it), but the Republicans love to do the the crony pony too.
I like Art Cashin. I used to read his UBS column and it was always full of great stories about the old days, even from before he came on the scene. I learned some interesting stuff from this guy. I can still picture in my mind’s eye him wearing his “Dow 10,000″ hat in 2008. (The joke being that he got the hat when the Dow was moving up and not crashing down like it was in 2008.)
OK. So you go to the 1st Bank of Bankertown or whatever. You deposit a check. Take a little cash out. But you wake the next day to find – surprise – the 1st Bank of Bankertown isn’t actually a bank at all. Granted some would argue that banks aren’t really “banks” at all anyway in the Fed system. But you get the point.
Cheap money feels good initially. Nearly everyone is happy when central banks open the floodgates (or helicopter doors) and cash spills into the economy. Hooray! Money! Why is it here now instead of yesterday? Who knows? Get while the getting’s good. Look, the stock market’s rising – whoopee! Monetary tequila. Bottoms up!
But the morning, the aching, head thumping morning always comes after such a binge.
“All I know is Ben Bernanke was tending bar. Goldman Sachs was buying me drinks. Everyone was having a great time. (Except those teetotalers the Austrian economists sitting in the back. They’re never any fun.) But everything after that is hazy. Where am I?”
“Son, you’re smack dab in the middle of an economic depression.”
“Oh man, really? Who are you?”
“I’m the Austrian economist who was sitting in the back of the bar. Get your hat. I’ll drive you home Mr. Keynes.”
“No, no. What I need – what we all need is more tequila.”
“Suit yourself.” Said the Austrian economist as he walked out level headed and sober into the blinding summer sun.
There is little which is “progressive” about “progressive politics.”
The “progressive” ethos celebrates the nomenklatura, the government bureaucratic class, which is enriched. Interestingly also in this country the tendency is to enrich the big companies (and their managers) with close ties to the government. The rest of society, and particularly the middle class is tossed aside. In the “progressive” world there is little time for such bourgeois values as liberty, property rights, economic freedom, privacy, and self determination.
No, there are the managed and the managers. That’s it. As such “progressive” politics tends to favor those who do not think for themselves and don’t want to, and those for whom power is an end.
Free markets in contrast, with free prices, allow organic economic growth and wealth creation. It is from the wellspring of the free human mind that true PROGRESS comes. Free minds are not a priority however for “progressives.” Compliance and conformity are what are valued. Entrepreneurs are trouble makers. Free thinkers are to be considered with suspicion. Innovation is a headache.
If one is not born into wealth the very best shot one has to die with wealth and perhaps some security for one’s family is in a free society and a free market based economy. If you develop skills, hustle, are smart about the deployment of limited resources one has a chance to do something extraordinary, to actually progress.
In a “progressive” society the only thing which progresses usually is the rate of human decline.
Seriously, what is wrong with these people? Our American principal of federalism allows states to go their own way on drugs. The 10th Amendment makes that pretty clear, and the old “affecting” interstate commerce bit is tripe. (Though the New Deal was built around this nonsense.)
The Feds and in this case the FED are afraid of devolution of power away from Washington fundamentally. That’s it.
Let these businesses do business. Coloradans want this type of business. It’s in their state. Leave them alone.
When a “bad” neighborhood turns desirable cities always seem to use eminent domain to chase the “undesirables” out. (You know, the people who actually live in a particular neighborhood.) Brooklyn Yard, Chicago, Detroit, Houston. Powerless, or nearly powerless people are easy prey and as such often feel the crush of City Hall.
But times are different. There’s an Internet now. And now these folks can get their stories out to the broader world.
Poor or rich people’s property rights must be respected. That’s what a free society does.
3 months ago Hillary was absolutely the unquestioned leader of the Democrat pack. Her coronation all but done. A walk, not even a brisk stroll, up to the podium where adoring Democrats would place the crown upon her head. Huzzah! Huzzah!
But boy have things changed.
The word “cascade” comes to mind. China is the world’s second largest economy. The continued crash has real implications for the rest of the world economically and probably politically. What those implications are at his point we do not know but it is certainly time now to keep one’s eyes on the horizon.
In the effort to inject interesting economic thought into the discussion at ACC we present the following video by Jeff Deist recorded at the Mises Institute. This lecture will likely challenge many of your assumptions about money.
That we have an IRS is bad enough. For the majority of our country’s history we had no IRS and we prospered. And we would again if the IRS and the income tax disappeared. But it is exponentially worse that the agency has been used as an outright tool of persecution by the White House. The IRS wasn’t looking for tax cheats, it was looking for enemies of the president.
And the president says that the real scandal is that the IRS doesn’t get enough funding.
Destroying (or attempting to destroy) one’s political opponents with said agency is no big deal however. Not like that is straight out of the 3rd world crony playbook or anything.
The question I have is why Congress, and specifically leadership keeps letting the Obama administration get away with this sort behavior. Behavior which is quite serious and damaging to the United States.
It’s really nothing remarkable.Significantly tamer than just about any Bud Light ad. No Tommy Chong in a fog of sensimilla. No Snoop Dog sitting by the pool bong in hand. The ad, if anything is boring. But alas it was pulled because the no one wanted to lose their FCC license. Funny how that works.