Archive for October, 2011

How to silence a Nobel Prize winning economist: Ask him about the economy.

October 17, 2011

The whole press conference is quite embarrassing for the economics profession.

Roubini Clueless About Austrian Economics

October 1, 2011

Robert Wenzel reports on Roubini Attacks Austrian Economists at Economic Policy Journal:

Nouriel Roubini is very well connected in the world of the financial power elite, but that doesn’t mean he knows is ass from his elbow when it comes to Austrian economics. He tweets:

“The austerians’ Austrian austerity will not lead to Schumpeterian ‘creative destruction’ but rather ‘deadly destructive depression'”

First of all, modern day Austrians see Schumpeter as a marginal player when it comes to the Austrian school of economics.

The most significant thinkers in Austrian economics are Ludwig von Mises, Murray Rothbard and Friedrich Hayek. After these three, Carl Menger and Eugene von Bohm-Bawerk would be added to the list.

Second, there are no Austrian economists who would be in favor of the current austerity programs being called for in the PIIGS countries, by globalist organizations such as the IMF, World Bank and the OECD.

Austrians view the IMF etc. as bankster enforcers, who exist for one reason and one reason only, to ensure that the banksters are paid. Austrians view the current increased taxes, as part of austerity programs in PIIGS countries, with horror, and as the state taking by force from the people and handing the funds to the banksters.

Rather than banksters getting paid, Austrians would rather see the the PIIGS countries go into bankruptcy, default on their debt and free the people. The same view holds with regard to the Austrian position on US Treasury debt. Treasury default is the Austrian solution, not phony “austerity” programs of tax reform, aka tax increases, and government programs that are “paid for” by shuffling imaginary cuts in to later years. Bottom line: Austrians aren’t in favor the current size of government, anywhere. It’s not about austerity, but about eliminating the government money grab on behalf of banksters.

Austrians are also in favor of ending the social-welfare programs, so that the countries can again grow and prosper, but this has nothing to do with the current austerity programs proposed for the PIIGS. This is a position Austrians hold relative to all state social-welfare programs, regardless of the debt situation of a country.

Roubini is shockingly clueless with regard to Austrian economics and its position on the current eurozone crisis and the crisis in the United States.