PERPETUAL GROWTH IS IMPOSSIBLE: We’ve all heard the story of the clever merchant who asked the King to pay him with grains of wheat placed on a chessboard. On the first square he was to receive one grain; on the second, two grains; on the third, four grains — doubling with every square up to the 64th. The King readily agreed to pay such a small sum; How much could it add up to in just 63 doublings, after all? The answer is that more grain than exists in the entire world would have to be placed on the 64th square. That is “the magic of compound interest” and it is 1) the reason that perpetual economic growth is impossible and 2) the reason that economies based on the creation of money as interest-bearing debt (read: all modern economies) inevitably go into crisis and fail.
The maverick Jewish writer Israel Shamir has just published Tom White’s extensive treatment of the subject which is well worth reading.
Jean-Baptiste Say, economist and exponent of the attainment of truth through logic and observation
by Kevin Alfred Strom
THE FACT THAT the fetid “economic stimulus” nonsense that continuously emanates from the professional plunderers in Washington is accepted by intelligent people is disturbing to me.
The idea that politicians can actually give us “free” anything — especially “free money” — is a perennial fallacy that would be laughed out of elementary school if real economics were taught to our children, as it should be. The acceptance of that fallacy by the manipulated and ignorant mob will surely deprive us of our freedom — and our children of their rightful inheritance.
The antidote to ignorance is education. For any intelligent child who is approaching the age of reason and who has somehow learned to read well despite the best efforts of the modern “educators,” the great work of the French economist Jean-Baptiste Say, A Treatise on Political Economy, will provide the grounding in economics that he or she needs.
Continue reading ‘Logical Economics’
BANKRUPTING THE COUNTRY?: Many economists these days are expressing fears that the “stimulus” program and spending sprees of the regime in Washington could lead to severe inflation, “bankrupting the country.” They make a good case, but it’s a little confusing when they refer to bankrupting the country when really they’re referring to bankrupting the government. Bankrupting (and eventually totally discrediting) the government is certainly very bad for the government — but it might end up being very good indeed for the nation that throws off such government.
RUSSIA FAVORS EURO OVER DOLLAR: According to Pravda, “the U.S. dollar is not Russia’s basic reserve currency anymore.” Though dollar-based assets at Russia’s central bank are still substantial at over 40%, they are dropping and have now been exceeded by Euro-based assets.
FEDERAL RESERVE KEY RATE NOW 1%: As the BBC says, this means the Fed is now “running out of rates” to boost the economy; of course, they could always go to negative interest rates and toss pre-approved loan applications out of airplanes. Maybe they should take my suggestion: make Monopoly money legal tender — it amounts to the same thing. Time to take a closer look at the crime of fractional reserve banking and the rationality of Social Credit.
