The meme is spreading. Rapidly, day after day, I’m meeting more Skeptical-Austrians, and Austrian-Skeptics. I don’t mean the country, but the economics.
James Delingpole-the-brilliant enjoyed my post: The Ground Zero of Global Corruption: it starts with The Currency. He’s had his awakening a few months back. Just yesterday I was talking to Redmond, a skeptic in Canada who turned out to be founder and director on Mises.ca (you can’t get much more Austrian than that). Martin Durkin (the infamous director of Great Global Warming Swindle) is an Austrian too. Back in Bali 07, even then, that Monckton, Archibald, and Balle were discussing gold and currencies (nearly half of all the skeptics there). I’m guessing Chiefio might be. I hear Ray Evans of the Lavoisier Group is too.
…skeptics of government science are also skeptics of government money…
It’s no surprise, really, that skeptics of government science would also be skeptics of government money. My message to all the sleeping skeptics out there is: get with the game. When I said climate science is the second biggest scam in history, I wasn’t joking.
So James, yes, welcome to the club! Absolutely, I’m an Austrian and so, of course, is my other half, Dr David Evans, who introduced the idea to me years ago, so long ago I can’t remember when. (He prophetically wrote: Why Invest in Gold Now? in 2004). In 2006 I submitted a story to Quadrant magazine about “the crunch to come” due to excessive monetary growth. (McGuinness rejected it). In 2008 I wrote every month in The Mining Chronicle – about the M3, and gold trading. We are so Austrian, we were Austrians before we were skeptics. We’ve been watching monetary aggregates and investing in precious metals since before gold was $250/oz.
For beginner Austrians
Some readers will be wondering what all the fuss is. Many scientists have never even heard of the best-kept-secret of economics, and there’s a reason for that (I’ll get to that another day). But you might do what I did — read Hayek (The Road to Serfdom) and revel in how economics really can make sense.
“…it is such an obvious truth that it’s been starved-into-submission for nigh on 70 years.”
Then ask a Keynsian why they’re right and the Austrians are wrong, and hear jargon unleashed. They’ll bedazzle you with reasons that ultimately “explain” why a few elected brains can make smarter decisions than the 22 million Australians, 60 million Brits, or 300 million US brains put together (and …. insert name of any other sovereign state). Remember, the wild successes of the “scientifically-planned” economies like, say, the Soviet Union? Exactly. It’s a banal sensibility that money is just another good to be swapped like anything else: if there’s more money and the same goods, of course the price of the goods goes up, and value of money goes down. Welcome to inflation.
Its all just supply and demand after all: Money Supply
The simplicity of it steamrolls other more convoluted theories. An increase in money is inflation*. The supply of money counts. If someone creates more of it — well they go to jail, it’s counterfeiting. (Unless of course, they are a government-protected-banker, then they get a three story yacht and a 10 bedroom mansion).
But the Austrian truism that the supply of money drives not just prices but the whole fakola business cycle, sending markets booming as supply grows and crashing as it shrinks, well, it is just such an obvious truth that it’s been starved-into-submission for nigh on 70 years. Ever since Keynes gave the small governments of the world an excuse to be Big-Governments, they haven’t looked back, appointing fans of Keynes to every spot they could think of in universities and ministries. Bankers, likewise, have nurtured the funny money bubble, so they too awarded grants to Keynsian economic departments, offered their graduates hot jobs, and basically pooh poohed anyone who disagreed. (Sounds a bit like warmism?) Before the 1930s, the ideas of Keynes were rightly considered self-evidently crackpot.
Lastly, James thinks (understandably) that I mostly write about climate, but this Austrian background of mine is why I was the skeptic who wrote that Carbon Credits are a Corrupt Fiat Currency (way back in Feb 2009) and why it was yours truly who went hunting for the big-money connections and found Goldman Sachs, JPMorgan, HSBC, and Deutsche Bank and wrote Climate Money. I realized it wasn’t about the science, never about the evidence, and everything to do with a 2 Trillion dollar scheme to make the second biggest cash-cow-in-history-from-thin-air. And I knew where to look.
The secret is out, Jo Nova has been posting on money as an Austrian all along. The credit of course for my visionary early uptake was David (whom I married)–I always thought economics was a bore. Then he opened the door on the real debate, and I was hooked.
Keynes versus Hayek: Big government versus individual rights (A seriously excellent rap video).
Tax versus Trade (On why we don’t want to trade a “fake market”)
PS: James Delingpole is coming to Australia to launch his fabulous new book in April. (In the UK it’s released as Watermelons – in Australia: Killing The Earth To Save It. Look out for his tour. I’ll have more details soon.
* For most a hundred years the definition of inflation was an increase in money. In the 1980’s and 90’s it came to mean an increase in prices, and thus the cause was replaced by the effect. What difference does it make? It’s easier to conceal that kind of inflation because it’s easier to mismeasure prices (which we discussed here). Like measuring global temperatures, there are a lot of “ways” to measure the CPI.