My Understanding Of Austrian Business Cycle Theory

Discussion in 'Economy' started by Lightfiend, Apr 24, 2010.

  1. Lightfiend
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    Lightfiend Member

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  2. Oddball
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    Oddball BANNED Supporting Member

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    Even though boom-bust cycles aren't necessarily created by the Fed, they certainly are exacerbated by them.

    Good link. :)
     
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  3. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    Dude's correct, any expansion of credit whether it's by a central bank or government will cause the boom-bust cycle.
     
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  4. william the wie
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    william the wie Gold Member

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    Two interesting takes on this are:
    "Applied Value Investing" by Joseph Calandro jr. Tries to unify Graham and Dodd's "Security Analysis" with the works of Von Mises and Rothbard to eliminate the micro/macro division in economics.
    "Panic" by Redleaf & Vigilante. Although less explicit than Calandro it also has an economic theory of everything.

    Until Huerta or one of the other modern heavy hitters of the Austrian school runs the numbers there won't be an explicit general theory with enough rigor to work but it does seem to be congealing.
     
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  5. mascale
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    mascale VIP Member

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    Capitalist money has intrinsic value of itself, like in Adam Smith. Socialist Money, of central governments--A Marxist Concept--is valued for its use in pricing and exchange.

    The Great Socialist Credit market of the United States is over $50 tril., but "educated" management fails at personal values completely, and won't accept that. The managers tried to include lower income households in the General Prosperity that the Clinton Administration had created. The "educated managers" then took the money away from the lower income sectors, and did military-like, engineering procurements instead.

    The Socialist Credit Market, however, accepts a great deal of failed personal values, the larger it is. The failed personal values of the US educated managers created a panic. Even the banking business stopped doing business, and accepted even more Socialist Credit Market Bailouts. Without doing further business, they repaid it all, at 8.5% APR, within in a few months.

    With virtually no credit market, but with lots of Adam Smith kinds of beads and trinkets money, Haiti and East Africa would be said far less fortunate. The civilized West, of failed personal values, finally sent in the plague of "relief workers," with failed personal values.

    The distorted concept of failed personal values, called "orphans," even made the newspapers.

    "Crow, James Crow: Shaken, Not Stirred!"
    (The Political Science department, wherein Elinor Ostrom draws Socialist Credit Market money, barred any presentation of that over 35 years ago. They all continued to draw the Socialist Credit Market money which they personally refused to let billions learn about!)
     
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    Last edited: Apr 25, 2010
  6. Paulie
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    Paulie Platinum Member

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    If there's anyone in here who speaks dumbass, that can translate what the fuck this mascale dude just said, hit me with it.
     
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  7. eagleseven
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    eagleseven Quod Erat Demonstrandum

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    I'm pretty sure he's an algorithm created by a drunk programmer.
     
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  8. Neubarth
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    Neubarth At the Ballpark July 30th

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    I usually key off of the first thing that he writes that seems to make sense and try to respond to it. There is no way that I could ever respond to the whole post. I think he is having fun, so try to have fun with him.
     
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  9. Neubarth
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    Neubarth At the Ballpark July 30th

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    I have often wondered about the Marxist Concept of money. If it is valued for its use in pricing and exchange then the Marxists have a firm grasp of capitalism.
     
  10. Neubarth
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    Neubarth At the Ballpark July 30th

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    I do not know that the Austrian School has ever proved that raising and lowering the discount/overnight rate has any real effect on the economy. It has always seemed to be a reaction to treasury Note rates rather than a leader of same.
     

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