The credit expansion boom of 2009 will eventually go down as yet another period of credit expansion promoted by the Fed that will have lead to another predictable bust. Today, it will be interesting to examine how the various levels of production are behaving under years and years of artificial interest rate suppression. It will also be helpful to look at charts and graphs examining the business cycle theory and the impact of time preference as taught by Mises. For starters, those new to the concept - a very brief paraphrasing of the general idea. Under a healthy functioning market people's consumer patterns impact their savings. More consumption equals less saving and less consumption more saving. In order to progress the society must save such that it can make investments in machinery, equipment, technology, etc if it hopes to increase the capacity of production. Sure ,you can harvest 10 coconuts a day, consume them by night and repeat the process...
I was browsing the latest IBD poll and it finally struck me. I had this idea brewing for the past few weeks now and this particular poll hit a nerve. What jumped out was the age group and who they are likely voting for. Obama / McCain 18-24: 74% 21% The rest of the age groups are more or less even with ages 65+ leaning more for McCain. Those folks should probably avoid leaning - hazardous to their health. Now, if you are a member of this group and are part of the 74% you are probably feeling good about yourself. If you are in the 21% then you are probably used to feeling desperate and angry that your peers ostracize you as if you were the next coming of the bubonic plague. But this number is very telling. Showing to us that a large group of freshly minted liberals, on average still in college, is in a very good position to influence these elections. Enthralled by the concept of "what they want the world to be" and their utopian ideals they hammer their message to anyone willi...
I feel compelled to make frivolous commentary regarding the latest spat between former VP Dick Cheney and Mr. Obama. Current topic of conversation? War on terror, a topic that Obama has undoubtedly mastered and fully understood in his short time as the president of this great nation. Positions? Cheney maintains his unwavering stance that dealing with terrorism requires a strong and calculated approach, a recognition of who the enemy is and what they are capable of doing is constantly reiterated and never forgotten. Obama maintains his wavering stance that America is built on certain principles and this "war on terror" is potentially violating these principles, furthermore that our political spectrum has it wrong and only a compromising approach can be a solution to avoid "man-made disasters". Who is winning? Once again, I must apologize to the frivolous nature of this post because I fail to see this as even a battle worthy of commentary. Considering of course the pa...
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