Booms and Busts

Recorded at the Mises Circle in Newport Beach, California, November 14th, 2009. Sponsored by Louis E. Carabini, Saturday.

Recorded at the Mises Circle in Newport Beach, California, on November 14th, 2009. Sponsored by Louis E. Carabini.

"As well as repudiating the Mississippi Union Bank bonds in 1840, the state effectively repudiated the debts owed to the state banks."

Bailouts cause malinvestments that lower real output, beginning the cycle again. This cannot continue forever: it will eventually result in a runaway-inflationary depression.

The word from Washington is that things are looking up. The citizens in Segovia used to hear the same thing from Rome.

Today, the main response to ill-effects of past interventions seems to be to create even greater ones.

We know what these measures do. They delay economic adjustment and recovery; they extend economic hardship, regardless of whether we call the hard times a depression or a "great recession."

That is why it is actually government "solutions" that increase the influence of greedy bastards in society. After all, "greedy bastard" is an excellent description of someone who demands power over others without cost or their willing consent; and falsely blames others to gain it.

Recorded at the Mises Circle in Greenville, South Carolina, 3 October 2009.

Recorded at the Mises Circle in Greenville, South Carolina, 3 October 2009. Sponsored by Ron Wilson, and Professional Planning of Easley, LLC.