Well,
working in the financial industry, I've been getting to watch the havoc of the current economic crisis with a nice front row seat. I've met many people who've been laid off, who've lost major amount of money in the market or in houses, and I've seen firms collapse. The house of cards is falling and while it's hard to watch it doesn't change the fundamental reality.
An economy cannot expand on credit alone, savings and production of goods must be at the foundation to sustain it. It's really that simple.
- Overregulation by Congress has pressured businesses overseas to remain competetive. While CEO's of these companies may seem overpaid, it doesn't change the reality previously stated.
- Manipulation of Interested rates by the FRB has incentivised debt and the inflation that has gone with it has destroyed the incentive to save. What's the point of saving, if you actually lose money in actual buying power if the money isn't spent NOW.
Money flows in and out of nations dependant on the imports/exports of the nation, if we don't produce the goods no matter how weak the dollar exports can't keep up with economy steroidal expansion.
If all our money is spent on imports, and no money is saved, what money is left?
So what does someone like nobel peace prize winner Paul Krugmen suggest? Lower Interest rates even more, give people even less reason to save? Expand the credit that's overexpansion caused the problem in the first place?
When a cup of water is overflowing, you don't pour more water in the cup. You let the excess water flow out till it reaches surface tension.
Wow... the current state of economics thought makes me sad.
Wednesday, November 26, 2008
Friday, November 7, 2008
#152 - Where do we go from here?
Hello Everyone,
I bet your all thinking now that the 2008 election season is over, what do I do? Well before go into what let's reflect on the significant changes in this years election.
- 7 of the many candidates backed by Ron Paul libertyPAC won their perspective races putting us 7 offices closer to REAL policy changes.
- CampaignForLiberty.com continues to grow and organize the grassroots for the 2010 election season, as Republican leaders discuss how to organize a vibrant grassroots organization over the next few years, let's hope they finally wise up that it already exists and just needs to be embraced.
- While I'm no supporter of Barack Obamas policy views, symbolically he represents a very different view of America. While I don't think he'll cause as much damage as his detractors, I don't think much will change other than perception. Although, coming from a marketing background, sometimes perception can make a lot of difference in certain realms.
- Ron Paul is still being interview all the time, and Revolution: A Manifesto is still selling, so the moementum is still growing.
To follow my political efforts, make sure to keep up here and @ http://www.mercedforfreedom.com
I'll keep you guys updated like I always do.
- Alex Merced
I bet your all thinking now that the 2008 election season is over, what do I do? Well before go into what let's reflect on the significant changes in this years election.
- 7 of the many candidates backed by Ron Paul libertyPAC won their perspective races putting us 7 offices closer to REAL policy changes.
- CampaignForLiberty.com continues to grow and organize the grassroots for the 2010 election season, as Republican leaders discuss how to organize a vibrant grassroots organization over the next few years, let's hope they finally wise up that it already exists and just needs to be embraced.
- While I'm no supporter of Barack Obamas policy views, symbolically he represents a very different view of America. While I don't think he'll cause as much damage as his detractors, I don't think much will change other than perception. Although, coming from a marketing background, sometimes perception can make a lot of difference in certain realms.
- Ron Paul is still being interview all the time, and Revolution: A Manifesto is still selling, so the moementum is still growing.
To follow my political efforts, make sure to keep up here and @ http://www.mercedforfreedom.com
I'll keep you guys updated like I always do.
- Alex Merced
Monday, October 6, 2008
#151 - Understand what's to come
The passing of the bailout was the end of an era. The sovereignty of nations and the prosperity held for so many years is climbing to an end. While it's Sovereignty and Liberty that will help reveal the true prices and value of our economy so we can move on from this debacle, the powers that be, the central banks, will more than likely unite into a more global power to continue to prop up the straw man economy they've created since 1913.
All we can do is to change the mainstream mode of though one individual at a time by evangelising individual liberty and austrain economics. Only by being free as an individual can we show others why it's the ideal, and the laws and policies will change along with that.
So educate yourself, here's a good article for doing so by Jesus Huerta de Soto
Make sure to subscribe to this blog and have your friends subscribe too, we must keep the ways of communication open to change things.
Alex Merced
http://www.mercedforfreedom.com
All we can do is to change the mainstream mode of though one individual at a time by evangelising individual liberty and austrain economics. Only by being free as an individual can we show others why it's the ideal, and the laws and policies will change along with that.
So educate yourself, here's a good article for doing so by Jesus Huerta de Soto
Make sure to subscribe to this blog and have your friends subscribe too, we must keep the ways of communication open to change things.
Alex Merced
http://www.mercedforfreedom.com
Tuesday, September 23, 2008
#150 - The Importance of Utopia
Many criticize politicians like Ron Paul who articulate goals such ending the IRS and the Federal Reserve as if they don't understand that it PRACTICALLY can't be done overnight. Although, in order to consistent and productive policy views you must have a vision of where you are going, a utopia to which base policy decisions as a path towards.
Whether it'd be the world where all needs are met through coercsion of production and wealth via socialism
Whether it'd be the world where strict value and genetic adherence create an efficient human race via facism
or even the coercion free world where people are free to pursuit their own ends and own their property, life, and actions of freedom minded people such as myself, Ron Paul, and everyone else in the movement.
We all have utopia, and it's this utopia that must exist in order to form policy for without a utopia policy becomes solely shortsighted and reactionary focusing solely on how to alleviate current problems which are usually just symptoms of larger more fundamental problems.
This is what the US has become, a household for reactionary policy
- the war on Iraq/Afghanistan, reaction to an event that is part of a bigger gap in US foreign policy
- The bailouts, addressing an instance of the business cycle which is the creation of the fundamental banking system which fosters it
- building a fence, a shallow attempt to address the burden created by mixture of managed trade, wage/price controls, and a welfare system
Only with a vision of a utopia can one be led to look at the foundation of a problem, for a reaction only exists in the now, only cares about the now. We need to return to a vision of utopia, no matter which utopia you choose at least in the end the debate of the fundamental US system will come back to life in doing so.
Whether it'd be the world where all needs are met through coercsion of production and wealth via socialism
Whether it'd be the world where strict value and genetic adherence create an efficient human race via facism
or even the coercion free world where people are free to pursuit their own ends and own their property, life, and actions of freedom minded people such as myself, Ron Paul, and everyone else in the movement.
We all have utopia, and it's this utopia that must exist in order to form policy for without a utopia policy becomes solely shortsighted and reactionary focusing solely on how to alleviate current problems which are usually just symptoms of larger more fundamental problems.
This is what the US has become, a household for reactionary policy
- the war on Iraq/Afghanistan, reaction to an event that is part of a bigger gap in US foreign policy
- The bailouts, addressing an instance of the business cycle which is the creation of the fundamental banking system which fosters it
- building a fence, a shallow attempt to address the burden created by mixture of managed trade, wage/price controls, and a welfare system
Only with a vision of a utopia can one be led to look at the foundation of a problem, for a reaction only exists in the now, only cares about the now. We need to return to a vision of utopia, no matter which utopia you choose at least in the end the debate of the fundamental US system will come back to life in doing so.
Monday, September 22, 2008
#149 - Hope for Non-Partisan Unity
In the new writing by Ron Paul, he really highlights what made him standout in the crowd during this years elections. His focus not on what we disagree on which separates us, but on what we agree on which brings us together.
It's no secret that most Ron Paul supporters don't agree with Ron Paul on most issues, even disagree with him on very decisive issues such as abortion. In the end people supported him cause the common ground was stronger than he divisions which is why we saw people from all over the political spectrum embrace the movement.
This is my problem with Democrats and Republicans.
Republicans spend all day focusing on the differences with Democrats
Democrats spend all day focusing on the difference with Republicans
they spend so much time being decisive that they abandon issues and focus solely of differentiating themselves from each other in useless bickering/marketing. This is why seeing Ron Pauls press conference with Nader, Mckinney, and Chuck Baldwin was so important cause you had candidates from such different political philosophies uniting on common ground.
This is what reaching across the aisle for change really looks like, putting aside SUBSTANTIAL differences for advancements of SUBSTANTIAL similarities.
The system is setup to create stalemates in the areas of disagreement, but change can happen in the common ground if we focused on that instead. Don't let the system blind you from the potential of nation united.
(NOTE: I do realize Ron Paul has officially endorsed Chuck Baldwin, if you read between the lines it's all a strategic move to target the group who's been the hardest to involve in the movement, the evangelicals. Like them or not, a coalition must be formed for change which can only be formed on common ground. I'm in this to create change, not to play to the marketing of some party.)
It's no secret that most Ron Paul supporters don't agree with Ron Paul on most issues, even disagree with him on very decisive issues such as abortion. In the end people supported him cause the common ground was stronger than he divisions which is why we saw people from all over the political spectrum embrace the movement.
This is my problem with Democrats and Republicans.
Republicans spend all day focusing on the differences with Democrats
Democrats spend all day focusing on the difference with Republicans
they spend so much time being decisive that they abandon issues and focus solely of differentiating themselves from each other in useless bickering/marketing. This is why seeing Ron Pauls press conference with Nader, Mckinney, and Chuck Baldwin was so important cause you had candidates from such different political philosophies uniting on common ground.
This is what reaching across the aisle for change really looks like, putting aside SUBSTANTIAL differences for advancements of SUBSTANTIAL similarities.
The system is setup to create stalemates in the areas of disagreement, but change can happen in the common ground if we focused on that instead. Don't let the system blind you from the potential of nation united.
(NOTE: I do realize Ron Paul has officially endorsed Chuck Baldwin, if you read between the lines it's all a strategic move to target the group who's been the hardest to involve in the movement, the evangelicals. Like them or not, a coalition must be formed for change which can only be formed on common ground. I'm in this to create change, not to play to the marketing of some party.)
Sunday, September 21, 2008
#148 - More videos discussing economics
Alex Merced on Economics #7 - Supply & Demand side economics
Alex Merced on Economics #8 - A bit about the depression
Saturday, September 20, 2008
#147 - How depressions/recessions get prolonged
when credit runs loose, prices get artificially high, and there isn't enough saving to serve as a foundation for the corresponding economic adjustment.
The great depression, and the currenct economic crisis are economic adjustments similar to cup with too much water.
Let's say the cup is the economy and water is credit, if you pour too much water in the cup what happens?
It overflows, but for how long, until you let enough water spill out till it reaches a point where the cup can support the amount of water still left. Although if you keep pouring water in hopes of keeping the same level of water you had originally you just prolong the overflow.
The government is feeding more credit into the overextended economy with bailouts and price manipulation which only prolongs the inevitable and sets the stage for a monetary collapse.
Of coursge to learn all the technical details go to http://www.mises.org
Note: During the depression the new deal which manipulated wages and prices actually suppressed job creation instead of helping it, prolonging the depression. The depression ended in spite of the new deal, not cause of it. Also, Herbert Hoover did not cause the depression by being hands off the market, he also signed in plenty of legislation increasing tariffs and manipulating prices which help make the great depressions worse.
For more on this read the book "The Politically Incorrect Guide to Capitalism"
The great depression, and the currenct economic crisis are economic adjustments similar to cup with too much water.
Let's say the cup is the economy and water is credit, if you pour too much water in the cup what happens?
It overflows, but for how long, until you let enough water spill out till it reaches a point where the cup can support the amount of water still left. Although if you keep pouring water in hopes of keeping the same level of water you had originally you just prolong the overflow.
The government is feeding more credit into the overextended economy with bailouts and price manipulation which only prolongs the inevitable and sets the stage for a monetary collapse.
Of coursge to learn all the technical details go to http://www.mises.org
Note: During the depression the new deal which manipulated wages and prices actually suppressed job creation instead of helping it, prolonging the depression. The depression ended in spite of the new deal, not cause of it. Also, Herbert Hoover did not cause the depression by being hands off the market, he also signed in plenty of legislation increasing tariffs and manipulating prices which help make the great depressions worse.
For more on this read the book "The Politically Incorrect Guide to Capitalism"
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