7 ms·

Sounds like the ABCT to me. http://en.wikipedia.org/wiki/Austrian_business_cycle_theory http://en.wikipedia.org/wiki/Austrian_business_cycle_theory Sounds to

Sounds like the ABCT to me. http://en.wikipedia.org/wiki/Austrian_business_cycle_theory http://en.wikipedia.org/wiki/Austrian_business_cycle_theory Sounds to me like printing money and pumping it into finance leads to an unsustainible economy.

nhaehnle 12y ago
Since there is an obvious political slant to the message, it should be pointed out that it is the finance industry itself that is "printing money". So take that into account while thinking through the political implications, if skylan_q's premise is actually true.
- zo1 12y ago
  And it should also be pointed out that only governments can grant the power to print state-approved money. If you don't have permission, you will go to jail. There are countless movie plots dedicated to this simple topic, it should already be pounded into most peoples' minds already.
dmfdmf 12y ago
That's what it sounds like to me too. Unfortunately, most people don't want to hear the truth so they downvote you. Big news for the ostriches; we never paid for the 2008/9 mortgage bust and those chickens are coming home to roost -- fattened up by the Feds ZIRP, TARP and continued credit creation. The mortgage bust was papered over by the Fed printing $4B+ and that is what they admit. It wouldn't surprise me if they printed double that to secretly loan to US and foreign banks and governments. Actions have consequences and soon we will see what von Mises meant by the crack up boom.
LiweiZ 12y ago
Austrian school economics seems unheard for many. After skimming books by Mises, I believe Austrian school is on the right track. But the tool for it has not ready at that time. When I learned about complexity systems. I think it can supply the right tool. And just this week, I'm reading papers by W. Brian Arthur. (http://en.wikipedia.org/wiki/W._Brian_Arthur http://en.wikipedia.org/wiki/W._Brian_Arthur) Quite fascinating experience. Another issue with economics is it has very tight connection with financial and political systems. Until some players could take advantage with those more advanced theories, a new wave of mind-sets would not emerge and widely accepted by the public. Money, power, information, control, it sounds like crazy words. When things become closer to those, you have to think harder to get closer to the reality, if you do care about it.
- rahulsidhu 12y ago
  That's an interesting thought. Any papers you'd recommend in particular?
  - LiweiZ 12y ago
    "All Systems will be Gamed: Exploitive Behavior in Economic and Social Systems" http://tuvalu.santafe.edu/~wbarthur/Papers/All%20Systems%20Gamed.pdf http://tuvalu.santafe.edu/~wbarthur/Papers/All%20Systems%20G... He has a new book with all his papers: Complexity and the Economy (http://www.amazon.com/Complexity-Economy-W-Brian-Arthur/dp/0199334293/ref=sr_1_1?s=books&ie=UTF8&qid=1424662358&sr=1-1&keywords=W.+Brian+Arthur http://www.amazon.com/Complexity-Economy-W-Brian-Arthur/dp/0...). I have not bought it yet. The preface is free to download here: http://tuvalu.santafe.edu/~wbarthur/Papers/Complexity%20&%20Economy%20Preface.pdf http://tuvalu.santafe.edu/~wbarthur/Papers/Complexity%20&%20...

nhaehnle 12y ago

Since there is an obvious political slant to the message, it should be pointed out that it is the finance industry itself that is "printing money". So take that into account while thinking through the political implications, if skylan_q's premise is actually true.

zo1 12y ago
And it should also be pointed out that only governments can grant the power to print state-approved money. If you don't have permission, you will go to jail. There are countless movie plots dedicated to this simple topic, it should already be pounded into most peoples' minds already.

dmfdmf 12y ago

That's what it sounds like to me too. Unfortunately, most people don't want to hear the truth so they downvote you. Big news for the ostriches; we never paid for the 2008/9 mortgage bust and those chickens are coming home to roost -- fattened up by the Feds ZIRP, TARP and continued credit creation. The mortgage bust was papered over by the Fed printing $4B+ and that is what they admit. It wouldn't surprise me if they printed double that to secretly loan to US and foreign banks and governments. Actions have consequences and soon we will see what von Mises meant by the crack up boom.

LiweiZ 12y ago

Austrian school economics seems unheard for many. After skimming books by Mises, I believe Austrian school is on the right track. But the tool for it has not ready at that time. When I learned about complexity systems. I think it can supply the right tool. And just this week, I'm reading papers by W. Brian Arthur. (http://en.wikipedia.org/wiki/W._Brian_Arthur http://en.wikipedia.org/wiki/W._Brian_Arthur) Quite fascinating experience. Another issue with economics is it has very tight connection with financial and political systems. Until some players could take advantage with those more advanced theories, a new wave of mind-sets would not emerge and widely accepted by the public. Money, power, information, control, it sounds like crazy words. When things become closer to those, you have to think harder to get closer to the reality, if you do care about it.

rahulsidhu 12y ago
That's an interesting thought. Any papers you'd recommend in particular?
- LiweiZ 12y ago
  "All Systems will be Gamed: Exploitive Behavior in Economic and Social Systems" http://tuvalu.santafe.edu/~wbarthur/Papers/All%20Systems%20Gamed.pdf http://tuvalu.santafe.edu/~wbarthur/Papers/All%20Systems%20G... He has a new book with all his papers: Complexity and the Economy (http://www.amazon.com/Complexity-Economy-W-Brian-Arthur/dp/0199334293/ref=sr_1_1?s=books&ie=UTF8&qid=1424662358&sr=1-1&keywords=W.+Brian+Arthur http://www.amazon.com/Complexity-Economy-W-Brian-Arthur/dp/0...). I have not bought it yet. The preface is free to download here: http://tuvalu.santafe.edu/~wbarthur/Papers/Complexity%20&%20Economy%20Preface.pdf http://tuvalu.santafe.edu/~wbarthur/Papers/Complexity%20&%20...