This morning on CNBC’s Squawk Box, government bond dealer Paul McCulley of Pimco–while reveling in the alleged total victory of Keynesians–said “Just as there are no atheists in foxholes, hopefully there are no Austrians in an economic crisis.” Of course, the Austrian view is growing massively, and the Keynesian proponents of Zimbabwenomics fear the truth. (Thanks to Seth Schueler.)
Obviously the first half of that statement is false.
I always liked the response: “That’s because atheists are smart enough not to be in the foxhole.” We could take that and say that if the Austrians were (not) in power there would be no government induced crisis in need of “fixing.” Of course both scenarios are unfortunately not possible because there are those who gladly use aggression to get others to do what they want.
Given the Mises Institutes existance and Ron Paul we can safely and thankfully say that the second half is false also.
I’m not familiar with other Whitehouse attacks on media people but this seems rather tame. Pompus… but tame.
Watch the Hardball clip too… it’s pathetic how biased and ignornat Mathews is.
There’s no shortage of bad news when it comes to the economy – the recession, fears of deflation and elevated jobless claims are just some of the things that people are talking about. The widespread sentiment of doom and gloom has put a damper on the holiday season. But is slowed consumer spending a result of hard economics or is the psychology of hard times holding consumers back?
In a recent study released by the Pew Research Center, it was reported that 73% of Americans say they plan to cut back on their holiday shopping this year. Nearly six-in-10 of those who said they’re cutting back report they’re doing so because they worry things might get worse; only 28% said they are cutting back because their financial situation has deteriorated.
Sure, we all need to save more and spend less, but extreme tightening might be the worst thing that consumers can do in tough times, as stopping normal spending will only put more pressure on the weak economy.
In order to fight the fear factor, consumers should not fight the urge to splurge — within reason of course. In fact, they should take advantage of falling gas prices to get out and about, take advantage of deep discounts in the stores and online for gift giving, and remember that giving this holiday season will lift spirits more than ever before.
Jackie DeAngelis is a writer and producer at CNBC. Previously she worked as a financial analyst at Oaktree Capital Mgmt. Jackie earned her J.D. from Rutgers Law School in 2008 and her B.A. in Asian Studies from Cornell University in 2002
Note to self: Oaktree Capital Management hires Keynesian financial analysts with law and Asian studies backgrounds instead of economists.
Left libertarians and statist communists often complain about “capitalists” and consumerism. Keynesian “spend spend spend”, “more money will solve everything” is hardly capitalism. If you just consume you have no capital. Progress can not occur without natural savings and capital accumulation. People like Jackie DeAngelis are mutual enemies to left libertarians of all sorts and those who agree with Austrian economic theory.
There was a lot more wrong with what happened in the Great Depression. Mr. Rogers should know that and should have mentioned that. To act as if liquidity alone was the reason for the Great Depression is disingenuous.
I love how frank Rogers is. Amazes me these stations continue to ask him on when they should know exactly what he’s going to say and that they won’t like it.