Lesson #239 - Austrian Economics For Dummies - The Market - Part 2 of 2
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Capitalism
This is the economic theory based on the use of capital for production purposes. It has three basic components:
- A free market which generates prices
- Manufacturing freedom for producers which can use those prices to perform economic calculations thus maximizing the productive capacity of savings
- Private ownership of the means of production
Capital versus Income
Because capitalism operates on prices, which is to say money, it is possible to differentiate…
Lesson #239 - Austrian Economics For Dummies - The Market - Part 1 of 2
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What is the market?
When people hear the term "market" the image that is conjured is not of the market itself but of a specific "market place". This is so because people do not generally understand the concept of "market", this is, the abstraction that the term "market" represents. As such people believe that "market" is a store, a mall, a supermarket, a collection of vendors in a plaza, a…
What Quantitative Easing Really Looks Like
- Category: Banks & Banking
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QE was announced in EU in October 2014. This was the formal announcement by the EU Central Bank "director" Draghi. It could not have been otherwise since the amounts of money to be printed out of thin air vastly surpassed the amounts of money that where printed out of thin air up to date. The unofficial QE called "asset purchase program" was getting too small for the massive amounts that…
What Entrepreneurship Looks Like
- Category: Entrepreneurship
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Believe it or not, we are all entrepreneurs. Yes Tina, even those evil, evil bureaucrats working for governments and their evil, evil masters the politicians. We are all entrepreneurs because we all do as best we can looking for ourselves. Yet, every time somebody mentions the concept of entrepreneurship this idea conjures images of exploiting billionaires sipping 40 years old scotch and smoking Cuban cigars in their 30 million yacht…
Double Taxation - The Stealing That Keeps On Stealing
- Category: Taxes
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In the world today there are only two classes of people; those who get robbed taxed in their country and those who get robbedtaxed in other countries as well. We know that at a local level there are many taxation layers that build one on top of the other. To be precise, they not only build one on top of the other but they feed from previous taxes. We have taxes…
Everything That Could Go Wrong…
- Category: Spending Us Blind
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…has gone wrong with this project. This is the title of an article published by the Norwegian newspaper Aftenposten. It makes reference to the arrival to Hammerfest (Norway) of the Goliath FPSO (floating production storage and offloading unit). This unit which is the world's largest floating oil drilling and storing platform was designed to operate in the world's northernmost oilfield, the Goliath field located in the Barents Sea (if you…
Baltic Dry Index - Beware Of False Prophets
- Category: Economic Conditions
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Lately there has been a flurry of activates on the net because a relatively obscure index, the Baltic Dry Index (BDI) has surpassed the low it experienced as a consequence of the 2008 debacle. According to pundits, economists and mis-informed "opinionators" out there, this drop in the index is "ushering" (as in novels) the beginning of a new calamitous economic period. The world is going downhill now, now, now! This…
Operation Scorched Earth Is Right On Track
- Category: Currencies
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Some time ago we reported about how the lunatics have put themselves in charge of the asylum by declaring widespread currency war on…well… about everybody but themselves (their salaries are inflation-adjusted, of course). The info can be found in the article Operation Scorched Earth - The New Economic Policy. Of course and right on cue nobody believed us and nobody continues to believe us. Debacle? Debacle? What Debacle?
ON TRACK
Well……
Bull Shit Time…err… Budget Time! - Part 2 of 2
- Category: Government Debt
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THE WHOLE PICTURE
But of course. In order to understand where we stand we need to look at the whole picture, a picture that governments don't want you to see. They will distract you with endless and ongoing meaningless details, meanwhile they will sneak a gigantic wild pink elephant called debt right behind you your back. Nothing to see here…keep looking at the balanced budget… nothing to see here.
Take…
