I started this blog in June 2007 asking these questions: Are we in a massive asset bubble that will blow up in our faces ??? - ANSWERED YES ! Is western and particularly British society on the verge of social collapse??? What are the best common sense long term investment strategies to keep you rich? When will consumption/debt bubble economics end and a real savings/production economy begin ???

Friday, 6 November 2009

Irrational Exuberance

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Wednesday, 4 November 2009

A Critique of the Austrian School of Economics

The Austrian School does not believe that macroeconomic truth can be found via the scientific method. They believe that economics is not physics but rather the study of human action.

When all humans are chipped so that their behaviour can be measured, predicted and controlled the Austrian School will be redundant. Until then it will still be the best set of tools for analysing the macro-economy.

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Monday, 2 November 2009

Hayek on Keynes - Even Keynes had a problem with Keynesianism ?

In February 1975 Margaret Thatcher was elected leader of the British Conservative Party. The Institute of Economic Affairs arranged a meeting between Hayek and Thatcher in London soon after. During Thatcher's only visit to the Conservative Research Department in the summer of 1975, a speaker had prepared a paper on why the "middle way" was the pragmatic path the Conservative Party should take, avoiding the extremes of left and right. Before he had finished, Thatcher "reached into her briefcase and took out a book. It was Friedrich von Hayek's The Constitution of Liberty. Interrupting our pragmatist, she held the book up for all of us to see. 'This', she said sternly, 'is what we believe', and banged Hayek down on the table".


For Hayek's critiques of keynesianism see his book; A Tiger by the Tail: The Keynesian Legacy of Inflation in PDF at:


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