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Contact:
Foundation for Economic Growth,
P.O. Box 10-282,
Wellington, N.Z.
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The Foundation for Economic Growth is a group of like-minded individuals who have decided to act rather than accept New Zealand's continuing poor economic performance. The Foundation is not affiliated with any political party. Add Your Comments here.

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Most recent update: Sep 30th, 2016 - 15:57:04

Newsletters : Current Newsletters : 19 September 2016
Thought for the Day

Inflation is a word used by economists to mean different things, and often it is not clear which definition is meant.

Originally inflation meant an increase in the money supply in a country. Experience and careful thinking then produced the theory that inflation caused a general rise in prices. This was tested in various real life situations and whether the 'money' was gold or silver or paper the same result was found.

When Spain imported all that gold from South America a few centuries ago they experience a big inflation which had bad effects on the economy. Prices rose too much and suddenly.

When Zimbabwe printed up more and more money in an attempt to catch up with the rising prices they had caused, they ended up with a loaf of bread costing $100,000,000,000,000. At this point they gave up using Zimbabwe dollars and used American or South African money.

Now that our economists seem to be taught that inflation is defined as a general rise in prices they cannot make this deduction.

The concept of cause and effect has been educated out of the economists' lexicon. The result is that it is impossible for economists to understand the scientific method and therefore they are completely unable to conclude whether any theory is true or false.

Thus they cannot tell whether Keynesian Economics is true or false. Then they come up with neo-Keynesian Economics and they still cannot say what is true and what is false.

So they believe what they are told to believe and "Lo and behold - the original science of economics has become the new religion of Economics".

This of course leads to continual arguments concerning the doctrine which can never be resolved in this Universe of shifty meanings.

Meanwhile the economists help the Central Bankers do more and more of the thing that is leading to the destruction of our currencies because it is the official doctrine. Those who own the Federal Reserve and control the Central Banking Cartel and their Cronies in politics and global business are now using this easy access to costless money to buy up and own all the best assets of the world.

The 0.1% are now supremely wealthy and the 99.9% are mostly getting poorer.

After this next iteration of the boom bust economy the middle class and the real workers of our society will be broke unless we can somehow break free from the clutches of the doomed Central Banking and its cheap credit.

When we get back to gold and silver we will be much wiser and our more rational economy will not boom and bust but quietly become more productive with a gentle decline in prices when measured in terms of gold.

In other words our economy will become "natural" or "normal" and our money savings will automatically increase in purchasing power as our productivity rises above the natural increase in gold stores of about 1.5% per annum.

Banks will only be allowed to work at 100% reserves and Central Banking will be forbidden. The workers will become rich from their own efforts if they save something each week. The entrepreneurs and business people will be able to assess investment risk properly and the booms and busts of our current era will quietly be confined to the dustbins of history.

I think the Chinese and the Russians understand this basic truth about economics and that they are working towards this end.

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Sep 19, 2016, 11:52

Creating Wealth and Keeping it

The New book by Phil Scott, President of the Foundation for Economic Growth.

"This book is good, damn good and no statistics!" Lindsay Gordon, MA, MSC, PHD.

Every serious economics student should have a copy and read this ground-breaking foundation of clear economic thinking. Real Economics explains how human actions shape our world and why so much seems to be going wrong for Western economies. This book will bring enlightenment for the general reader who will see why a few very wealthy are becoming exceedingly rich and the middle classes are on the road to serfdom.

See more: www.realeconomics.co.nz