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Faux Economics

Austrian Economics
Addresses manipulation of volume as the cause of the boom/bust cycle. But blames the State for this, instead of the Money Power. Ignores the wealth transfer from poor to rich through interest and tries to explain it away as a normal free market price for money. Favors interest bearing Gold.
Modern Austrians want a free market for currencies, which is positive. They mistakenly claim Gold will prove to be best in such market. But Gresham’s Law predicts people will hoard gold and pay with paper.
Clamors for deflation. Deflation hurts debtors (90% of the population), as the value of debts and the interest payed over them increases in value. Kills economic growth because people hoard cash instead of investing and consuming.
Deflation is a result of crashing demand, due to a contracting money supply. The associated declining prices are not a boon, but a symptom of a serious disease.

The Issues:
End the Fed: a Trojan Horse destroying the Truth Movement from within
Why Tom Woods is wrong about the Greenbackers
Fighting Free Market Fundamentalism
Austrian Economics, Apostles of Austerity Defending Deflation
the Austrian ‘Free Market for Currencies’ Hoax
Libertarianism’s main fault: Blaming the State while ignoring the Money Power
Why Gold is so strongly deflationary
Phoenix Rising, the Return of the Gold Standard
Top Ten Lies and Mistakes of Austrian Economics
The Inflation vs. Deflation Dialectic
Bitcoin, a Positive Step forward in Monetary Reform
Usurious Usurpation
Hate the State, buy Gold and all will be well: an Alternative Media in crisis
The Ron Paul Challenge: 10 reasons why the Alternative Media is failing this test
Austrian Economics is still ‘Jewish’ Economics

Why Bankers love Gold
Gold revisited
The Problem with Gold
Alex Jones joins Alan Greenspan in calling for a Gold Standard

The Money Power build up of Libertarianism and Austrian Economics
How the Money Power created Libertarianism and Austrian Economics
The “Catholic” Arm of Libertarianism, By Memehunter
The Satanic Core of Libertarianism, By Memehunter
Old Rothschild- and Rockefeller hands controlled the Libertarian-Communist dialectic, By Memehunter
How the Money Power spawns Libertarians
Who is Ed Griffin?

Discussions with (the now defunct) the Daily Bell (in order of publication)
Discussing Gold and Interest with the Daily Bell
Daily Bell: wrapping up
The Daily Bell tolls for another round in the debate
Meanwhile, at the Daily Bell……they might have a point about Ellen Brown and OWS
The Daily Bell: Usurious Commercial Banking is Good, Interest-Free Government Money is Tyranny
The sulking Elves from the Woods of the North
The Daily Bell calls it quits…

See the Daily Knell for Memehunter’s great work on Libertarianism and the Daily Bell

Gary North’s annoying nonsense
Gary North’s Bluff: the Lie he’s been sitting on for 50 years
In response to Gary North
What Gary North is not telling you about Interest
In defense of Ellen Brown

Notable Third Party Articles:
The U.S. Constitution doesn’t say money should be gold or silver coin, by Faux Capitalist
Greenbackers vs. Goldbugs
, by Eric Blair (Activist Post)
Taking Aim at the Austrian school of Socialism
, from the perspective of Landreform by Keith Gardner
Inflation is Interest, Deflation is Theft
, by Keith Gardner
Prophets of Mammon: Purveyors of Liberty, Servants of Corruption, by Peter D. Goodgame

Keynesian Economics
Sees the deflationary tendencies of the Gold Standard and proposes reflation of the economy in times of depression. However, they don’t understand that reflation with currency based on interest bearing debts implies ever growing costs for capital.
Currently they say money is cheap, with low interest rates. But these debts will have to be rolled over in a few years. And history shows that interest rates are guaranteed to rise.

‘Quantititive Easing’ as perpetrated by Ben Bernanke has nothing to do with reflation. Bernanke handed out trillions to the banks to support their destroyed balances. ‘Reasoning’ that banks were undercapitalized due to the Credit Crunch and therefore not lending. They are still not lending. Meanwhile those who failed have been given trillions, at the cost of the public.

The reflation must be done with interest free capital supplied to the real economy: consumers and firms.

Krugman’s Misunderstanding of Debt
Nobel Prize winner on Debt

Webster Tarpley criticizes Wall Street and ‘deregulation’. Not bad, but he also avoids the monetary system itself, let alone interest.

Full Reserve Banking
Full Reserve Banking is the next step after getting rid of Fractional Reserve Banking. It is relevant both under a Gold Standard and debt free money.
The problem is, that the Money Power can (re)gain control of the Money Supply through compound interest, even if the money was created debt free.

Forget about Full Reserve Banking
Debt free money alone does not solve compound interest
Full Reserve Banking Revisited

61 Comments
  1. benhur permalink

    Does this site have an opinion on the book Tragedy and Hope by Carroll Quiqly?

    • Well, I read it and enjoyed it. It contains a lot of good info and large scale analysis and of course the clues to the financial power behind the throne.

  2. Andy CFC permalink

    History shows interest rates will rise? oh really so lets take the period from 2006-.2012 and where are they?
    come on you said they guarenteed to rise, well this isnt true is it…you didnt specifiy a time frame so I did.

    • My friend, 2006-2012 is not a very long and thus not a very relevant timespan.

      Better check interest rates over the last 100 years at least to get the picture.

      • Andy CFC permalink

        Ok fair point Anthony, trouble is picking any timespan we could probably argue either way on what particular timespan suits us. Im not against higher interest rates as it happens, at the moment no when we are in a balance sheet recession, higher interest rates would actually put more money into the economy.

  3. Andy CFC permalink

    Why are you lumping QE in with Keynsian economics? Its far more a neo classical move than ours yes I suppose you could include the neo keynesians such as Krugman but its not the Post Keynsian or MMT type position as we completely refure the money multiplier , totally misreprenting all the Keynsian schools, very poor analysis as you obviously dont understand it.

    • I think the point was made Bernanke’s QE has ‘nothing to do with reflation’

      • Andy CFC permalink

        Yeh apologies point taken you did say that, which is what the PK/MMT position has been saying but read as Keynesians dont understand it which is incorrect and again reads as a put down, I was a bit touchy there as reading it back that its not really possible to state why you disagree or agree in a couple of sentences we both should be careful eh! :)

  4. Andy CFC permalink

    Why are you going on about fractional reserve banking we havent had that it in a long time.

    • hm. Are you sure?

      • Andy CFC permalink

        Yes i am sure, banks nowadays dont lend on the basis of what reserves they have, the loan takes place before reserves are taken into account, its done AFTER the fact and the central banks will always make as many reserves available as needed (Canada doesnt even bother with the pretence, it has no reserve requirement at all)
        So what actually is happening is banks loan on whether you are credit worthy and if they can make a profit, they are actually capitol constrained not reserve constrained. Its actually worse than you think, there is practically no limit to how much they can create! describing it as Fractional Reserve Banking is technically incorrect.

        Now having said that its not that im a supporter of the banks far from it, my choice would be to nationalise them, your choice would probably be different! what we would agree on though is the effect they have, its robbing us blind.

        Apologies slightly I made my original post sound confrontational when it wasnt meant to be, an understanding of what they do must be correct to be able to fight the neo liberal bs.

      • Andy CFC permalink

        capitol??? my spelling eh of course i mean capitAl

  5. mike permalink

    What is the solution if austrians are bad, keynesians are bad…capitalists are bad?

  6. May I suggest web site MONEY:The 12th and FINAL RELIGION also book and blog by the same name. Thanks Rduanewilling.com

  7. Here’s another. You wrote:

    ——————————–
    “‘Quantititive Easing’ as perpetrated by Ben Bernanke has nothing to do with reflation.”
    ——————————–

    No way. QE is a last ditch resort to propping up the system against its inevitable failure, because the peripheral banks are compromised by our inevitable inability to continue servicing the escalating sum of debt. They’re hoping to prop up the peripheral banks *against the perpetual need to reflate* (a term strictly from my work), *because* those banks are failing under our inevitable inability to reflate.

    It’s all about reflation then.

    You just don’t understand this, Anthony.

    • I indeed do not understand this comment.

  8. Much more to go over here; but deflation is not the result of crashing demand. Many processes can precipitate in a decreasing circulation (which is the traditional definition of deflation), but I deduce that what you mean by “deflation” is decreasing prices.

    Neither however are decreasing prices caused by decreasing demand, because as interest increases debt in proportion to a remaining circulation and the industry and commerce which can be sustained by it, subject to ever greater costs of servicing debt… then ever less of the circulation is available to markets, which likewise can only pay less.

    Prices reach a practical bottom when profit is nullified. After that (or before), industry is expatriated to places which are yet to reach such pronounced debt under the present obfuscation of our currency; and at which labor can be exploited moreso than it can in the country of origin.

    Nonetheless then, both circulatory deflation and price deflation are inherent and inevitable consequences of the obfuscation of our currency — as is a destruction of demand. But the latter is a consequence of the former — not the other way around (as you stated it).

    • yeah, you’re right, bad formulation. A result of the discussions I was having with the Austrians about deflation, which they like.

      I mean ‘circular’ deflation. I don’t agree with you that the ONLY driver is ever mounting capital costs. This clearly is a very fundamental driver, but partly off set by the printing press, which partly compensates for this process with ever new credit. ‘Price inflation’ as a result somewhat dampens the effect of mounting interest costs.

      The contraction in volume (which is undeniable, just look at the stats) is a setup organized directly from BIS. They use elaborate schemes for it (like MBS going bad), but the intention is clear: bust banks so that they won’t replenish the money supply with new credit.

      So I agree with you that ever mounting costs for capital MUST eventually bust the system, but it is not the only variable: intentional contractions of the money supply also are at play.

  9. a_reader permalink

    Very nice summary. Thanks for the links to libertyrevival (Keith Gardner), I didn’t know them.

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