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| Last Updated: Aug 15th, 2008 - 11:26:43 |
Newsletters
:
2007 Newsletters
:
7 December 2007
Thought for the Day
The profound words of Austrian School economist Ludwig von Mises drive right through the soft underbelly of fiat currency-based Keynesianism:
"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."
Dec 7, 2007, 12:09
Newsletters
:
2007 Newsletters
:
7 December 2007
Bleak House.
The worst is yet to come for Britain's housing market.
First the USA sub-prime problem which has roiled the world's money markets, now the British housing market is looking like getting the colly-wobbles.
How will the New Zealand housing market fare next year? Is the world wide housing boom over? Will we enter a period of prolonged deflation as has been happening in Japan since 1990?
Dec 3, 2007, 11:16
Newsletters
:
2007 Newsletters
:
7 December 2007
A Cool Look at Global Warming
The Economics and Politics of Climate Change
As a trained scientist and mathematician I tend to look at the science relating to Climate Change and since I find that Kyoto claims just do not stack up I wonder why people cannot see the facts and make the obvious deductions.
Here is a speech given recently by a retired English politician who is now in the happy position of being able to say just what he likes!
So while the politicians, the bureaucrats and assorted fellow travellors sun themselves in Bali (funny how they manage to hold their conferences in Cancun or Rio or Bali) we can read some common sense from someone with no axe to grind.
[ Visit Website ]
Dec 2, 2007, 11:03
Newsletters
:
2007 Newsletters
:
7 December 2007
The Financial Apocalyptics Are Back
Can an understanding of economics help investment. This is a book review of "Crash Proof: How to Profit from the Coming Economic Collapse" by Peter Schiff.
With so much uncertainty in the world it must help to get a sound view of economics. Although the book is about investment this review shows how the ideas of Austrian economics can lead to sound thinking about the real world and that these concepts can show us how to tread lightly through the mine fields of investments.
Oct 17, 2007, 16:51
Newsletters
:
2007 Newsletters
:
7 December 2007
Despotic Government – Another Barrier to African Development.
Gareth Morgan is on his motorcycle trip around Africa and describes the effect of corruption on those poor benighted people. Corruption starts with the small things from the leadership and insidiously works its way down the bureaucratic chain. We hope it will not start here.
As long as outside nations continue to provide free money to the dictators running African nations the corruption will continue and millions will continue to live in poverty. The do-gooders strike again!
Oct 16, 2007, 17:35
Newsletters
:
2007 Newsletters
:
7 December 2007
Don't Believe Those Inflation Numbers
Our politicians have taken another pay rise recently to make up for inflation. I wonder if the old age pensioners get the same rate of pay rise?
Governments in power have a vested interest in keeping inflation expectations as low as possible. Everywhere in the world governments are inflating their currencies by 10% or more and for the present with China providing consumer items at such a low price we are still living a high life.
But money inflation eventually washes around the economy causing inflationary pressures. With 10% to 15% more money chasing roughly the same amount of goods and services it is only natural to expect that prices will rise. All economists agree on this point at least. The question is will they rise by 10% to 15%?
My guess (and it is only a guess) is that consumers will experience a rise that is lower by the extent to which; the population increases and the amount of goods and services available increases. Just how these things are related at the moment seems to be mere speculation. However if the population is increasing by 20,000 per annum or 0.5% and GDP is increasing by 2% per annum then if the money supply is increasing by 12.5% then we have 10% inflation. Other factors might also impinge on this result but we are looking at real inflation around 10% rather than the inflation according to the CPI of 2% or 3%.
Our everyday experience with housing, electricity, rail fares, petrol, dentists, property rates, insurance, tradesmen's hourly rates, parking fees, and so on and so forth shows considerable inflation well above the 2% to 3% official figures.
People in the USA are also experiencing high inflation while government statistics show a benign regime. Mark Bradly, Associate Professor of Economics at Ferris State University, discusses this question in more detail.
Sep 15, 2006, 17:05
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