Friday, March 6, 2009
Fran's an Austrian!
I can't believe it! OK, OK, I can. I have suspected for some time that Fran Porretto, the illustrious mastermind of one of the best blogs on the web, Eternity Road, was an Austrian economist. He tends to cite F. A. Hayek a lot, and if I'd taken the time to read all of his older posts, I'd have been confirmed a long time ago. But, alas, for the want of time! Still, it is really great to hear it straight from the horse's mouth. He has written a wonderful post on the basics of the ABCT (Austrian Business Cycle Theory, posited by Hayek), with a link to an even better post on basic monetary theory and the monetary history of the US. He appears to have come to the same conclusion I had written about some months ago: the US is on the verge of "inflationary default." Which is to say, the US is facing imminent bankruptcy, but since it has the "power of the press," it will simply print the money it needs to pay its bills, robbing dollar-holders of their purchasing power and efectually stiffing creditors in the process. Anyway, for those of you who have a hard time making sense of my posts, here's another set of explanations for you. Although he does leave out the FED's manipulation of interest rates and bank lending as a method for expanding the money supply. I do not understand that. But anyway, he's a far more learned man and better writer than I, so you have yet another source... Which kinda makes me sad. I hate to be in competition with a guy of that caliber. Maybe I need to to find another schtick... More chemistry posts, anyone?