Fear the Boom and Bust

À propos of the upcoming vote on whether to confirm Ben Bernanke for another term as Chairman of the Federal Reserve, I pass along the following video.  Proving once again the capacious bounds of human imagination, it presents some of the basic differences between Keynesian and Austrian economic perspectives by casting Keynes and Hayek as . . . well, you’d better just watch it yourself.  (Bernanke and Geithner make an appearance (in character at least) at 4:28.)

One of the creators, Russ Roberts of George Mason University, has a weekly podcast called Econtalk that’s terrific.

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The Latest from Ron Paul on the Bailout

I received this via e-mail a few minutes ago:

Dear Friends:

The financial meltdown the economists of the Austrian School predicted has arrived.

We are in this crisis because of an excess of artificially created credit at the hands of the Federal Reserve System. The solution being proposed? More artificial credit by the Federal Reserve. No liquidation of bad debt and malinvestment is to be allowed. By doing more of the same, we will only continue and intensify the distortions in our economy – all the capital misallocation, all the malinvestment – and prevent the market’s attempt to re-establish rational pricing of houses and other assets.

Last night the president addressed the nation about the financial crisis. There is no point in going through his remarks line by line, since I’d only be repeating what I’ve been saying over and over – not just for the past several days, but for years and even decades.

Still, at least a few observations are necessary. Read the rest of this entry »