Randomly Selected Article or Link

It's 47 minutes long, but one of the most important lessons you will ever learn, IMHO (NB - some good quotes in this from our Liberal forebears Reginald McKenna, Josiah Stamp, McKenzie King - all feature in our "pantheon" of Liberal economists):

And, lest you believe all this to be the province of eco-socialists, this one from the Mises Institute, in tribute to Murray Rothbard's work on money, attributing the same causes to inflation but advocating a completely different solution:

And now read how the modern central banker does it...he doesn't even bother to turn the printing presses, he makes us pay for his monetary expansion policies:

Ex-Governor George says Bank deliberately fuelled consumer boom

By Jane Padgham

Published: 21 March 2007

The Bank of England deliberately stoked the consumer boom that has led to record house prices and personal debt in order to avert a recession, the former Bank Governor Eddie George admitted yesterday.

Lord George said he and his colleagues on the Monetary Policy Committee "did not have much of a choice" as they battled to prevent the UK being dragged into a worldwide economic slump by slashing interest rates. And he said his legacy to the current MPC was to "sort out" the problems he had caused.

Lord George, who headed the Bank for a decade from 1993, revealed to MPs on the Treasury Select Committee that he knew the approach was not sustainable. "In the environment of global economic weakness at the beginning of this decade... external demand was declining and related to that, business investment was declining," he said. "We only had two alternative ways of sustaining demand and keeping the economy moving forward - one was public spending and the other was consumption.

"We knew that we were having to stimulate consumer spending. We knew we had pushed it up to levels which couldn't possibly be sustained into the medium and long term. But for the time being, if we had not done that, the UK economy would have gone into recession just as the United States did."

He said he was "very conscious" that stimulating consumer demand could give rise to problems in the future. "My legacy to the MPC, if you like, has been 'sort that out'," he said. Under Lord George's governorship, rates were slashed from 6 per cent in 2001 to 3.5 per cent in 2003, pushing house price inflation above 25 per cent and high street spending growth to its highest since the late-Eighties boom.

Technorati Tags: debt money, fiat money, monetary reform, Rothbard

Maybe it's just the ethos of the new era in Britain under the Son of the Manse, and the Tories running hard to keep up with what is being seen as a neo-puritanism stalking the country, but there's been a lot of talk of new or increased restrictions on things like drugs and drink. Most recently of course we've had the outbursts by Chief Constable Peter Fahy of the Cheshire Constabulary wanting to  prevent "lesser adults", prospective alcohoodies, whose misfortune is merely to be older than we allow them to vote, to fight for Queen and country (or at least Tony Blair and George Bush), to serve in most elected offices, and to stand trial as adults, but less than the arbitrary age of twenty one from consuming the demon drink for fear that they all turn into murderous fiends.

I am a Libertarian and a Christian, and I want to share with you a favourite little passage from the good book that I believe sums up the libertarian response to such nonsense, and shows that it is inconsistent to see "things", substances and the like, as the culprits such that we should not be allowed to touch them. Temperance once meant not abstinence, forced or otherwise, but self-restraint, personal responsibility, and it's just plain wrong to blame the inanimate for what state people get into by abusing them.

From the Gospel of Mark, chapter 7:

18 And [Jesus] saith unto them, Are ye so without understanding also? Do ye not perceive, that whatsoever thing from without entereth into the man, it cannot defile him; 19 Because it entereth not into his heart, but into the belly, and goeth out into the draught, purging all meats? 20 And he said, That which cometh out of the man, that defileth the man. 21 For from within, out of the heart of men, proceed evil thoughts, adulteries, fornications, murders, 22 Thefts, covetousness, wickedness, deceit, lasciviousness, an evil eye, blasphemy, pride, foolishness: 23 All these evil things come from within, and defile the man.

Christianity is not a po-faced, prohibitionary puritanism, but a way of life that emphasizes the virtue of true Temperance. I wish I could find it now, but I once read one of the works of the Cictercian monk and philosopher Thomas Merton in which in one passage he explains that things like alcohol and tobacco (he might feel differently today about the latter of course but let's suggest he might choose cannabis today) are both gifts and temptations. As a gift, alcohol can be enjoyed in moderation for its ability to lubricate social interactions, but as a temptation can be used to blot out one's other problems or to remove the inhibitions that prevent us doing harm to others or ourselves.

It's up to us all to learn, if we want to use such things, how to do so responsibly, to use them as gifts, and without endangering others or making complete fools of ourselves, abusing them as temptations. We cannot achieve that by banning them, or keeping them from young enquiring minds.

I've not been posting much recently. It's the worst week of my year. Getting everything ready for the arrival of my 550 new teenaged charges in halls of residence and so on. But also because I am working on another blog. I mean helping to write and debug a new piece of blog server software that will enable me to move mine over to my favourite web content management system.

I already use it a little at my Oxfordshire Community Land Trust site but it's not quite as robust as to work with all the editing tools and so on I use yet.

See, I'm more than just a set of wacky opinions...:)