Booms, Busts and the
Piltdown Man
When we refer to
“the dismal science” there are few who
don’t realize that we mean Economics and any disagreement
with that description is more often with the noun, than the adjective.
There seems...from our outsider’s viewpoint...to be two main schools of Economics, Keynesian and Austrian. The first...again from the depths of our naivete...seems to assert that the proper treatment of our present financial crisis, brought on by overspending and debt, is.....overspending and debt. The Austrians, on the other hand, although much less fun, seem to be saying that the cure is less spending, more saving and less “misallocation” of precious capital.
The analogy could be made to a farmer’s attempt to fertilize a field for production. He realizes that merely dumping colossal amounts of manure in a pile in his field will do more harm than good. The soil will actually be harmed by this ”misallocation” and eventually he’ll run out of manure. If our analogy holds - and analogies are perilous - colossal amounts of “misallocated” money will eventually also be harmful, the money in question will eventually come to be worth less than manure...and will come to smell about the same.
Which brings us to Piltdown Man.
In 1912 a human skull was unearthed near Piltdown Common in England. An apelike jaw was found nearby. A “missing link”! Other artifacts were found. Although there were some features that gave pause to a few experts, in time there came general acceptance even from the likes of the astute pathologist, Dr. Rudolph Virchow. It was not until 1953 that the whole charade was debunked by a few skeptics with the aid of now available chemical dating techniques. The perpetrator of the fraud is thought to have been the original “discoverer”, an apparently playful lawyer and amateur anthropologist named Charles Dawson. He passed away in 1916.
The writer Evan S. Connell included this story in one of his captivating essays entitled “Olduvai & All That”. He concludes,“One is entitled to ask, of course, how so many eminent scientists could have been fooled for such a long while. There’s no satisfactory answer.”
We’re certainly entitled to ask the same question regarding our present global financial crisis. How could so many “experts” have been fooled for such a long time. Well, there were a few who weren’t fooled and who went on the record with their warnings. They were largely ignored and, at times, ridiculed. Such names as Peter Schiff, Addison Wiggins and Bill Bonner, James Turk and John Rubino, Howard J. Ruff, Jim Sinclair, Charles Goyette, Jim Rogers, Marc Faber, Niall Ferguson, and Congressman Ron Paul. There are others. Some of their books are included among those on this page which deal with our present predicament and which we sincerely hope might prove useful to you.
RM There seems...from our outsider’s viewpoint...to be two main schools of Economics, Keynesian and Austrian. The first...again from the depths of our naivete...seems to assert that the proper treatment of our present financial crisis, brought on by overspending and debt, is.....overspending and debt. The Austrians, on the other hand, although much less fun, seem to be saying that the cure is less spending, more saving and less “misallocation” of precious capital.
The analogy could be made to a farmer’s attempt to fertilize a field for production. He realizes that merely dumping colossal amounts of manure in a pile in his field will do more harm than good. The soil will actually be harmed by this ”misallocation” and eventually he’ll run out of manure. If our analogy holds - and analogies are perilous - colossal amounts of “misallocated” money will eventually also be harmful, the money in question will eventually come to be worth less than manure...and will come to smell about the same.
Which brings us to Piltdown Man.
In 1912 a human skull was unearthed near Piltdown Common in England. An apelike jaw was found nearby. A “missing link”! Other artifacts were found. Although there were some features that gave pause to a few experts, in time there came general acceptance even from the likes of the astute pathologist, Dr. Rudolph Virchow. It was not until 1953 that the whole charade was debunked by a few skeptics with the aid of now available chemical dating techniques. The perpetrator of the fraud is thought to have been the original “discoverer”, an apparently playful lawyer and amateur anthropologist named Charles Dawson. He passed away in 1916.
The writer Evan S. Connell included this story in one of his captivating essays entitled “Olduvai & All That”. He concludes,“One is entitled to ask, of course, how so many eminent scientists could have been fooled for such a long while. There’s no satisfactory answer.”
We’re certainly entitled to ask the same question regarding our present global financial crisis. How could so many “experts” have been fooled for such a long time. Well, there were a few who weren’t fooled and who went on the record with their warnings. They were largely ignored and, at times, ridiculed. Such names as Peter Schiff, Addison Wiggins and Bill Bonner, James Turk and John Rubino, Howard J. Ruff, Jim Sinclair, Charles Goyette, Jim Rogers, Marc Faber, Niall Ferguson, and Congressman Ron Paul. There are others. Some of their books are included among those on this page which deal with our present predicament and which we sincerely hope might prove useful to you.
Financial Reckoning Day Fallout:
Surviving Today's Global Depression
by
William Bonner and Addison Wiggin
with Kate Incontrera
Wiley Tenth Edition 2009 ISBN 978-0-470-48327-5
This
is an updated edition of this prescient bestseller first published in
2003. Both authors are widely recognized and respected in the financial
writing and newsletter publishing business. The book is a thorough
examination of the various trends that have, over time, led us to our
present financial and fiscal morass. In some instances, it explores
such trends over the centuries. It is very well written - frequently
sardonic - and is a pleasure to read.
The Ascent of Money:
A Financial History of the World
by
Niall Ferguson
Penguin 2008 ISBN 978-1-59420-192-9
See this excellent book on our Featured Book and Author page.
The Dollar Meltdown:
Surviving the Coming Currency Crisis with Gold, Oil,
and Other Unconventional Investments
by
Charles Goyette
Penguin 2009 ISBN 978-1-59184-284-2
Charles Goyette was formerly a radio talk show host in
the Phoenix area. He's an economically articulate media personality and
frequent media participant in the ongoing discussion of our present
debt and currency crisis.
The Road to Serfdom
Texts and Documents
The Definitive Edition
by
F.A. Hayek
The Collected Works of F.A. Hayek: Volume II
Edited by Bruce Caldwell
University of Chicago Press 2007 ISBN 0-226-32055-3
F.A.
Hayek, Nobel Laureate and leading figure in the Austrian School of
Economics, wrote this book in 1944. It has became an undisputed classic
and has been called one of the most important books of the last
century. It's a passionate, authoritative and closely reasoned
refutation of Socialism, Collectivism, Statism, Progressivism -
whatever term you prefer for control of the State over the economy and, perforce, over the individual.
From the cover blurb..."For F.A. Hayek, the collectivist idea of empowering government with increasing economic control would lead not to a utopia but to the horrors of Nazi Germany and fascist Italy. But over the past sixty years, The Road to Serfdom has established itself alongside the works of Alexis de Tocqueville, John Stuart Mill, and George Orwell for its timeless meditation on the relation between individual liberty and government authority."
From the cover blurb..."For F.A. Hayek, the collectivist idea of empowering government with increasing economic control would lead not to a utopia but to the horrors of Nazi Germany and fascist Italy. But over the past sixty years, The Road to Serfdom has established itself alongside the works of Alexis de Tocqueville, John Stuart Mill, and George Orwell for its timeless meditation on the relation between individual liberty and government authority."
Economics in One Lesson
by
Henry Hazlitt
Three Rivers Press 1946 ISBN 978-193355021-3
Henry
Hazlitt (1894-1993) was truly a prolific polymath - philosopher,
literary critic, journalist and economist. In his time, he was the
leading public voice of the Austrian School of Economics. His book, Economics in One Lesson,
is considered a classic. He wrote it to counter the popular economic
fallacies of his day but, of course, there hasn't been any dwindling
of these with the passage of the years and his book remains
terribly pertinent. As a starting point for one wishing to become
economically conversant, you couldn't do better.
Guide to Investing in Gold and Silver:
Everything You Need to Know to Profit from Precious Metals Now
by
Michael Maloney
Business Plus 2008 ISBN 0-466-51099-8
An
introduction to investing in the precious metals by precious metals
expert and historian, Michael Maloney. This is a volume in the "Rich
Dad's Advisor" series.
Stock Investing for Dummies
by
Paul Mladjenovic
Wiley 2009 ISBN 978-0-470-40114-9
Paul Mladjenovic is a very experienced Certified Financial
Planner whose sensible approach to stock investing is reflected
throughout this book. This is a good introduction for those with little
experience in such but it hardly stops there. It's a wealth of
practical information on the subject all presented in Paul's affable,
down-to-earth style. He's also the author of
Precious Metals Investing for Dummies. 
The World Is Your Oyster:
The Guide to Finding
Great Investments
Around the Globe
by
Jeff D. Opdyke
Crown Business 2008 ISBN 978-0-307-38104-0
An experienced international investor, Jeff Opdyke covers investing and personal finance for The Wall Street Journal and is the author of The Wall Street Journal Complete Personal Financial Guidebook. This is a practical and complete introduction to international investing.
The Revolution:
A Manifesto
by
Ron Paul
Grand Central 2008 ISBN 0-446-53751-9
For
many years, physician and long-time Texas Congressman Ron Paul has
been..."a voice crying in the wilderness"...the wilderness of
Washington political and fiscal irresponsibility. This important book
gives the lie to many myths sponsored by big government and political
parties and which bear directly upon your personal and economic
freedom. You remember what that was, don't you?
A Gift to My Children:
A Father's Lessons for Life and Investing
by
Jim Rogers
Random House 2009 ISBN 1-4000-6754-1
It
seems that the adjective most commonly applied to Jim Rogers is
"legendary". Certainly, no exaggeration. He was co-founder of the
fabulously successful Quantum Fund before he was thirty and made a
fortune before age forty. Not one to remain inactive, he embarked on a
22 month around-the-world motorcycle odyssey which covered 100,000
miles and took him to 52 countries. This is journaled in his book, Investment Biker.
About 10 years later - having exchanged the bike for a specially
designed and constructed Mercedes-Benz - he set out again. This time
for a three year adventure though 116 countries. This is described in
his second such book, Adventure Capitalist. Both books are full of global investment advice and are absorbing travelogues in their own right...wonderful reads.
A unique book, A Gift to My Children is written as lessons from Rogers to his two young daughters who, when we last heard, were being taught Mandarin Chinese. Informed by his independent and frequently contrarian philosophy it's a treat for both young and old.
A unique book, A Gift to My Children is written as lessons from Rogers to his two young daughters who, when we last heard, were being taught Mandarin Chinese. Informed by his independent and frequently contrarian philosophy it's a treat for both young and old.
Hot Commodities:
How Anyone Can Invest Profitably in the World's Best Market
by
Jim Rogers
Random House 2004 ISBN 978-0-8129-7371-6
Commodities are said to be in a secular bull market. In
1998, Jim Rogers created the Rogers International Commodities Index
(RICI). On more than one occassion, he's said that he's the "world's
worst" market timer and trader. We doubt it but, even so, he could be the world's best commodities investor. He shares his knowledge in Hot Commodities.
How to Prosper During the Coming Bad Years of the 21st Century
by
Howard J. Ruff
Berkley 2008 ISBN 978-0-425-22432-8
The original edition of this book entitled How to Prosper During the Coming Bad Years
was published in 1978 and is said to be the bestselling financial book
in history. Yogi Berra aside ("It's deja vu all over again."), the
present financial difficulties contain the threat of making the late
1970's pale in comparison. Howard Ruff has updated his classic with the
aim of its being as helpful to individuals in the present financial
chaos as the original was in helping protect assets in the
late 70's.
Crash Proof 2.0:
How to Profit from the Economic Collapse
by
Peter D. Schiff with John Downes
Wiley 2009 ISBN 978-0-470-47453-2
Here's
another individual that was sounding the alarm early on. In the first
edition of this book, Peter Schiff foresaw the crash of the real estate
bubble, the demise of Fannie Mae and Freddy Mac and our present fiscal
crisis. He's concerned with protecting investors from the worst
consequences of the present debacle.
The Little Book of Bull Moves in Bear Markets:
How to Keep Your Portfolio Up When the Market Is Down
by
Peter D. Schiff
Wiley 2009 ISBN 978-0-470-38378-0
From the cover blurb..."Written in a straightforward and accessible style, The Little Book of Bull Moves in Bear Markets reveals
how you should protect your assets and invest your money when the
American economy is experiencing perilous economic downturns and wealth
building is happening elsewhere."
Basic Economics:
A Common Sense Guide to the Economy
by
Thomas Sowell
Basic Books 2007 0-465-00260-3
Thomas
Sowell is currently a Senior Fellow on Public Policy at the Hoover
Institution of Stanford University. His is a long and distinguished
career at various academic institutions and think tanks. He's a
prolific author and has addressed a spectrum of economic and public
policy issues; he hasn't avoided the more controversial of these.
As advertised, Basic Economics presents exactly that in the author's clearly written manner replete with helpful examples and appropriate for the general, aware public. It is unmuddied by use of jargon nor by the dubious mathematics that seem so dear to some economist's hearts. A good place to statrt.
As advertised, Basic Economics presents exactly that in the author's clearly written manner replete with helpful examples and appropriate for the general, aware public. It is unmuddied by use of jargon nor by the dubious mathematics that seem so dear to some economist's hearts. A good place to statrt.
The Collapse of the Dollar and How to Profit From It
by
James Turk and John Rubino
Doubleday 2007 ISBN 978-0-385-51224-4
Paper money eventually returns to its intrinsic value---zero.
___Voltaire
The
authors sounded the alarm for our present debt and fiscal crisis
as early as 2004 with the original edition of this book then entitled The Coming Collapse of the Dollar and How to Profit from It.
John Rubino is a widely-sought financial analyst, author and blogger. James Turk is a highly respected and experience member of the financial and precious metals communities and the founder of the innovative "digital gold" service, GoldMoney.
John Rubino is a widely-sought financial analyst, author and blogger. James Turk is a highly respected and experience member of the financial and precious metals communities and the founder of the innovative "digital gold" service, GoldMoney.
Meltdown:
A Free-Market Look at Why the Stock Market Collapsed,
the Economy Tanked, and Government Bailouts
Will Make Things Worse.
by
Thomas E. Woods Jr.
Regnery 2009 ISBN 978-1-59698-587-2
Thomas
Woods is a senior fellow at the Ludwig von Mises Institute in Auburn,
Alabama. The Institute is very actively involved in preserving and
carrying forward the Austrian School of Economics developed in the past
by economists Ludwig von Mises, Henry Hazlitt, F.A. Hayek, Murray N.
Rothbard and others. By the way, their website is a veritable gold mine
(no pun intended) of material having to do with the Austrian School,
much of it downloadable and free.
From the cover blurb..."In Meltdown, bestselling author Thomas E. Woods Jr. unearths the real causes behind the collapse of housing values and the stock market - and it turns out the culprits reside more in Washington than on Wall Street."
From the cover blurb..."In Meltdown, bestselling author Thomas E. Woods Jr. unearths the real causes behind the collapse of housing values and the stock market - and it turns out the culprits reside more in Washington than on Wall Street."
von Mises Institute