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Misplaced Faith

Those of us viewing the world with knowledge of Austrian Economics are watching the inevitable result of allowing politicians to print money without limit. The dramatically more popular Keynesian theorists who dominate government economic posts spew lots of comforting words that continue to prove wrong. Yet those of us trying to get friends and family to prepare for economic collapse are greeted with patient, “They have a lot of smart guys who know what they are doing”.

I know the discussion is over and am saddened by the tragic three assumptions embedded in their sense of security: that the manipulators are honest, knowledgeable and that they have our best interests at heart.

lying-pinoccio

How this view of federal lawmakers and administrators can be held is a continual source of amazement. Lies, cheating, tax dodging, story-changing, mis-spent money, lost money and so much more are the hallmarks of Washington DC. Almost all know it to be a swamp of decadence, yet the majority take every word out of there as the gospel truth. Honesty in government is not a safe assumption.

The Keynesian school of economics is very popular to politicians. It says they can print money with wild abandon and manage the economy successfully. Keynesians are hired by the politicians to explain government programs to media and to students in schools that receive government money (basically all of them). Keynesians dazzle with economic models unintelligible to the untrained. Those models have the unfortunate record of never predicting the future correctly. However, after each failure, the models are rebuilt into an increasingly complex and even more useless machine.

Meanwhile, Austrian Economics is straightforward, understandable and works every time. Its fatal flaw is its support for market forces and against political largess and selfish manipulation. The so-called economic knowledge the USA is trusting is a flawed mythology repeated often enough to gain widespread acceptance.

The third assumption is the saddest of all. These bright boys are working for us. They print as much money as all the workers in the country earn in a year, hand it to their millionaire friends to spend “on our behalf” and we are supposed to believe that helped us. They are crazy to even think we’ll swallow it. BUT WE DO!!!

One thing I and my doubting friends can agree on: “They” do have a plan. That we can trust their plan to be good for us is where we diverge.

As many of us struggle to prepare for the US-dollar’s fall, we work with complex sets of variables and unknowns. Yesterday I found a “book report” that will undoubtedly lead to some important answers. A businessman financed a study of three hyperinflating economies and Wrote The Book on them.

I highly recommend you click on the link above. The Book may be the most important thing you put in your pantry this month.