Sunday, September 20, 2015
Saturday, September 19, 2015
Saturday, April 11, 2009
#157 - Reflecting on HR 1207
Hey Guys,
It's amazing to see the Ron Paul and the Campaign for Liberty doing sucha great job of garnering support for HR 1207. While I hope to again make videos explaining lots of the economic concepts in their most basic form to help induct people into an austrian view of economics it's nice to see some true attention being paid to the federal reserve and how it influences the entire world.
Sometimes people just don't understand how the change interest rates could have such an influence on the prices and values of everything. To understand one must understand that all debt investments must key off the risk free rates, which is the rate of treasury debt. Risk Free, how can something be risk free you say, well the only reason Treasury debt is supposedly risk free is through the Federal Reserves open market operations where it enlists primary dealers to always being to meet the supply and demand needed to meet it's objectives.
Thus this processes creates a security that has little or no risk, and also let's the government borrow money cheap, yet when something is cheap demand grrows to unhealthy levels (i.e. Lower the price of soda, I will buy more of it).
So in effect you create a mentality in where the government will overspend with ease, which creates the inflation that pushes the process to devaluate the purchasing power of dollar for citizens like you and me.
It's sad and scary, very scary. Cause in the end the level of freedom is tied to our economic health and this creates a an engine of government spending that quickly has undermined our economic health and freedoms in the process.
So Yes, Hr 1207 is important to create the transparency to make this attrocity visible to those in power who claim ignorance, this bill is important.
Alex Merced
It's amazing to see the Ron Paul and the Campaign for Liberty doing sucha great job of garnering support for HR 1207. While I hope to again make videos explaining lots of the economic concepts in their most basic form to help induct people into an austrian view of economics it's nice to see some true attention being paid to the federal reserve and how it influences the entire world.
Sometimes people just don't understand how the change interest rates could have such an influence on the prices and values of everything. To understand one must understand that all debt investments must key off the risk free rates, which is the rate of treasury debt. Risk Free, how can something be risk free you say, well the only reason Treasury debt is supposedly risk free is through the Federal Reserves open market operations where it enlists primary dealers to always being to meet the supply and demand needed to meet it's objectives.
Thus this processes creates a security that has little or no risk, and also let's the government borrow money cheap, yet when something is cheap demand grrows to unhealthy levels (i.e. Lower the price of soda, I will buy more of it).
So in effect you create a mentality in where the government will overspend with ease, which creates the inflation that pushes the process to devaluate the purchasing power of dollar for citizens like you and me.
It's sad and scary, very scary. Cause in the end the level of freedom is tied to our economic health and this creates a an engine of government spending that quickly has undermined our economic health and freedoms in the process.
So Yes, Hr 1207 is important to create the transparency to make this attrocity visible to those in power who claim ignorance, this bill is important.
Alex Merced
Thursday, March 19, 2009
#156 - An update on things
Hey Guys,
I've been finding it harder and harder to find topics of posts since everyone at mises.org, campaignforlibery.com, etc. have already been doing such a great job. If you not checking those sites out regularly I suggest that you do.
But I guess let me post some of my thoughts on some of todays hottest questions:
Will the markets recover?
Surley, but if you live in the US it doesn't mean your standard of life will be all that great. The markets don't soley depend on U.S. companies or the U.S. Economy. So while years of no savings and dwindling production led to the worlds greatest consumer feeling some hurt along with everyone else. Everyone else will recover as their exports find new consumers now that countries like China who's been lucky to have a lot of saving will need to spend it.
Of course, these are all macroeconomic generalities which got us into the problem in the first place. I plan on putting my money in the market soon, cause I do feel many foreign nations will recover in some capacity sooner than later. I am a little bit more bearish on the U.S. economy cause I'm not seeing where new production jobs will come to fuel everything else. Oh well, maybe it's time for that move to the phillipines :).
If you have any questions you'd like me to write about, email it to me at alexmerced@alexmerced.com
I've been finding it harder and harder to find topics of posts since everyone at mises.org, campaignforlibery.com, etc. have already been doing such a great job. If you not checking those sites out regularly I suggest that you do.
But I guess let me post some of my thoughts on some of todays hottest questions:
Will the markets recover?
Surley, but if you live in the US it doesn't mean your standard of life will be all that great. The markets don't soley depend on U.S. companies or the U.S. Economy. So while years of no savings and dwindling production led to the worlds greatest consumer feeling some hurt along with everyone else. Everyone else will recover as their exports find new consumers now that countries like China who's been lucky to have a lot of saving will need to spend it.
Of course, these are all macroeconomic generalities which got us into the problem in the first place. I plan on putting my money in the market soon, cause I do feel many foreign nations will recover in some capacity sooner than later. I am a little bit more bearish on the U.S. economy cause I'm not seeing where new production jobs will come to fuel everything else. Oh well, maybe it's time for that move to the phillipines :).
If you have any questions you'd like me to write about, email it to me at alexmerced@alexmerced.com
Sunday, February 1, 2009
#155 - Economic Emergency 1-3
I've been spending some time observing the actions of goals of the new administration and reading a lot of media from mises.org before I posted again, well here are some videos with my thoughts.
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