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I came across Austrian economics quite some time ago & it
Posted on: April 10, 2025 at 15:35:43 CT
JeffB MU
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always made sense to me.
That was in contrast to my first economics class at Mizzou, Econ 51. I was quite baffled when the prof put up T account charts, explained the accounting on a new loan, and matter-of-factly stated that hence the money supply went up.
What? How could that be?
Keynesian economics as practiced in the US & the western world never quite made sense to me.
Decades ago I read the book, The Creature from Jekyll Island : a second look at the Federal Reserve
If interested you can read it online here:
https://archive.org/details/creaturefromjeky0000grif
or listen to the author, G. Edward Griffin:
https://archive.org/details/The-Creature-From-Jekyll-Island_G-Edward-Griffin
https://archive.org/details/g-edward-griffin-creature-from-jekyll-island-second-look-at-the-federal-reserve
I was also getting an investment letter from an Austrian economist & what he was saying certainly seemed to make a lot more sense than the Keynesian system which seemed to be built upon sand. That letter warned about the dot.com bubble before it happened, and then of subprime market for some years before it crashed. It made a lot of sense, but they were issuing the warnings a number of years before the crash. I started to have doubts as their warnings seemed quite legitimate, but the market paid not attention month after month, then year after year. In fact, after the crash had a round table of experts discussing it & the FT moderator asked at one point whether those seeing the underlying problems and warning of them spoke out too soon. When is too soon? When do they become "The Boy Who Cried Wolf?".
It is a legitimate question. I posted links on here multiple times back in the day of Youtube compilations of ~"Peter Schiff was right and Bernanke was wrong". He was on show after show as the Doom and Gloom guy while the other financial gurus would take the other side. In fact, one of them literally laughed at his warnings of the problems in the subprime market and in the housing bubble that he was warning of. Bernanke had been asked point blank whether there was a housing bubble & he reassured everyone that the fundamentals supported current valuations and reassured everyone that housing prices had never fallen across the board in US history. Not to worry.
I also linked up NY Times columns by their Nobel Prize winning expert, Paul Krugman, with a headline of ~"How did we economists get it so wrong?". He admitted that they were caught with their pants down regarding the financial crisis starting in 2007/2006, and had things completely backwards.
I also linked up some columns by Peter Schiff around then on the "Seeking Alpha" website. He linked up prior articles with his predictions and it was absolutely amazing how spot on he was in giving an analysis of the economic bubble and how things were going to have severe effects first on the housing market and financial institutions and extreme effects that would ripple through the rest of the economy.
I also linked other articles from Seeking Alpha of the Federal Reserve "investigating" itself and how they exonerated themselves of any responsibility for the huge bubble that they had created.
I have also had posts on here along the lines of the perpetual bubble economy the Fed creates and links to Matt Taibbi's classic takedown of Goldman Sachs & their takeover of the federal government's economic decision making, "The Great American Bubble Machine"
https://www.rollingstone.com/politics/politics-news/the-great-american-bubble-machine-195229/
I've also linked the Youtube video about that criminal bailout of the banksters in that era, "The Hundred Million Dollar Penny" multiple times
https://youtu.be/3dl1y-zBAFg
A search should also turn up multiple posts I've made with links to the Auburn Austrian Economics Prof Roger W Garrison on the Austrian Theory of the Business Cycle and how a misunderstanding of economics built into the Keynesian mindset of the Federal Reserve is the cause of our boom and bust cycles, which cause a misallocation of assets and much unnecessary pain and financial waste. https://search.brave.com/search?q=roger+garrison+youtube+business+cycle&source=desktop
That was in contrast to my first economics class at Mizzou, Econ 51. I was quite baffled when the prof put up T account charts, explained the accounting on a new loan, and matter-of-factly stated that hence the money supply went up.
What? How could that be?
Keynesian economics as practiced in the US & the western world never quite made sense to me.
Decades ago I read the book, The Creature from Jekyll Island : a second look at the Federal Reserve
If interested you can read it online here:
https://archive.org/details/creaturefromjeky0000grif
or listen to the author, G. Edward Griffin:
https://archive.org/details/The-Creature-From-Jekyll-Island_G-Edward-Griffin
https://archive.org/details/g-edward-griffin-creature-from-jekyll-island-second-look-at-the-federal-reserve
I was also getting an investment letter from an Austrian economist & what he was saying certainly seemed to make a lot more sense than the Keynesian system which seemed to be built upon sand. That letter warned about the dot.com bubble before it happened, and then of subprime market for some years before it crashed. It made a lot of sense, but they were issuing the warnings a number of years before the crash. I started to have doubts as their warnings seemed quite legitimate, but the market paid not attention month after month, then year after year. In fact, after the crash had a round table of experts discussing it & the FT moderator asked at one point whether those seeing the underlying problems and warning of them spoke out too soon. When is too soon? When do they become "The Boy Who Cried Wolf?".
It is a legitimate question. I posted links on here multiple times back in the day of Youtube compilations of ~"Peter Schiff was right and Bernanke was wrong". He was on show after show as the Doom and Gloom guy while the other financial gurus would take the other side. In fact, one of them literally laughed at his warnings of the problems in the subprime market and in the housing bubble that he was warning of. Bernanke had been asked point blank whether there was a housing bubble & he reassured everyone that the fundamentals supported current valuations and reassured everyone that housing prices had never fallen across the board in US history. Not to worry.
I also linked up NY Times columns by their Nobel Prize winning expert, Paul Krugman, with a headline of ~"How did we economists get it so wrong?". He admitted that they were caught with their pants down regarding the financial crisis starting in 2007/2006, and had things completely backwards.
I also linked up some columns by Peter Schiff around then on the "Seeking Alpha" website. He linked up prior articles with his predictions and it was absolutely amazing how spot on he was in giving an analysis of the economic bubble and how things were going to have severe effects first on the housing market and financial institutions and extreme effects that would ripple through the rest of the economy.
I also linked other articles from Seeking Alpha of the Federal Reserve "investigating" itself and how they exonerated themselves of any responsibility for the huge bubble that they had created.
I have also had posts on here along the lines of the perpetual bubble economy the Fed creates and links to Matt Taibbi's classic takedown of Goldman Sachs & their takeover of the federal government's economic decision making, "The Great American Bubble Machine"
https://www.rollingstone.com/politics/politics-news/the-great-american-bubble-machine-195229/
I've also linked the Youtube video about that criminal bailout of the banksters in that era, "The Hundred Million Dollar Penny" multiple times
https://youtu.be/3dl1y-zBAFg
A search should also turn up multiple posts I've made with links to the Auburn Austrian Economics Prof Roger W Garrison on the Austrian Theory of the Business Cycle and how a misunderstanding of economics built into the Keynesian mindset of the Federal Reserve is the cause of our boom and bust cycles, which cause a misallocation of assets and much unnecessary pain and financial waste. https://search.brave.com/search?q=roger+garrison+youtube+business+cycle&source=desktop
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I came across Austrian economics quite some time ago & it - JeffB MU - 4/10 15:35:43