Hayek pwns Keynes

[mouser98]

[michael.suede]

hahaha awesome

[mouser98]

i cannot get enough of it, i think my favorite line right now is "prepare to be schooled in my Austrian perspective"

[mouser98]

here is a great comment from ZeroHedge.... storing it here so i don't forget it:

This actually touches on what I think has been one of the greatest negative consequences of the Fed's recent actions, that hasn't really been discussed, the end of the markets as a method of price discovery.

The great advantage of free market capitalism is that resources are deployed more efficiently to maximise output. The disadvantage is that you can't decide what that output is going to be.

Socialism's great advantage is that you can decide what the goals of the output should be, less inequality, favoring industry over banking, etc. Basically, socialism allows a degree of public control over the shape of the economy at the expense of having a smaller economy.

What we have now is the worst of both worlds. Because the government has decided that various markets can not be allowed to fall they have destroyed the price discovery mechanisms of these markets, stock markets, housing markets, gold, various commodities etc. Without real pricing signals capital is not being allocated by the economy to produce the maximum economic output.

So we live in an economy that has the inefficiency of socialism but without the redeeming feature of socialism that social goals can be aimed for.

And these price discovery mechanisms are an important part of why the developed economies hold a lead over less developed economies and they took hundred of years to be developed, often through trial and error and chaos and calamity and the current people in charge have thrown that all away. They destroyed the free market system in order to protect people who gambled from having to take their losses.



And the consequences of that are going to last longer and cost more even than the bailouts

[Factorniner]

This is an epic video. At the top of my list so far in 2010.

[Alladdin]

I agree on Zero on what he think is advantage and disadvantage of it.

I think we must consider what he is saying about.