Austrian School provides best explanation of financial crisis

Jean-Marie Eveillard, who manages $36 billion dollars of other people’s money via First Eagle Funds, discusses the current highly interesting markets in China, India, gold, silver, mining, and much more, in the 14-minute King World News interview below, with Eric King.

I thought this might be interesting, because halfway through his analysis, Mr Eveillard cogently explains how the Austrian School of Economics has provided the most convincing explanation for all the financial events over the last few decades, including the current peculiar circumstances in which we find ourselves, in which non-Austrian economists continue to find themselves baffled, month after month, with a global economy which adamantly refuses to follow the tenets of Lord Keynes:

1 Comment

  • Jake says:

    mike montagne – founder PEOPLE For Mathematically Perfected Economy
    January 30, 2010 at 11:05 am

    First of all, I formally published the theses of inevitable failure in 1979: a) that any pretended economy subject to interest inevitably terminates itself under insoluble debt; and b) that there is one and one only integral solution to the categoric faults of the imposed systems: 1) inflation and deflation; 2) systemic manipulation of the cost or value of money or property; and 3) inherent, irreversible multiplication of artificial indebtedness by interest.

    Secondly, I furnished the Reagan Administration with computer models which projected the present failure, proving the first thesis (a) — which models c) you can still download, complete with source code from our pages; d) run 1980s data; and e) still project that the present failure will occur at approximately 2010 AD.

    Thirdly, it is utterly preposterous that any Austrian “economist” could have projected the present failure; and every person here with the least familiarity with this pseudo science knows why:

    The Austrians routinely reject mathematics; and they in fact exalt interest — the very cause of failure!

    The reason nonetheless that Austrians and Hayek in particular exalt interest (with no mathematic or rational defense whatever), Hayek himself tells us: It makes “banking” (obfuscating the promissory notes of the people) “an extremely profitable business.” (See Mises page, reproducing Hayek’s article: “A Free-market Monetary System.”)

    “Freedom” is Hayek’s first lie, for there is no freedom even from terminal exploitation, when the purported “Free Market Monetary System” is imposed upon the people despite political promises to the contrary, and when it can only multiply artificial indebtedness in proportion to capacity to pay, as the unassenting subjects are forced to maintain a vital circulation by perpetually re-borrowing principal and interest as ever greater sums of artificial debt, perpetually increased so much as periodic interest on an ever greater sum of debt, until of course the sum of artificial indebtedness exceeds their (finite) capacity to pay, destroys their credit-worthiness to maintain a vital circulation — and you have what you have right now, everywhere around you.

    That’s freedom, Mr. Austrian “economists?”

    In fact the lie of your pretended economy can only multiply artificial cost!

    Now, to say you predicted the present failure, even as it is the one possible fundamental consequence of the interest you advocate — that is one of the greatest lies in history.

    But it won’t fly.

    mike montagne — founder PEOPLE for Mathematically Perfected Economy, and original architect of mathematically perfected economy (1979)

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