Thursday, August 5, 2010

Why this recession is different

Easily one of the most cogent presentations I've seen on the proper response to the credit crunch, from someone who's lived through doing it wrong. Readers should understand that Nomura Research is no liberal think tank, it's the Japanese equivalent of the research arm of Goldman Sachs.

7 comments:

Anonymous said...

Thanks for airing this Steve. Such a refreshing and informative business news perspective not available on our soil. What was the show that was doing the interview? BBC 1 or 2?
Charlene

Jon said...

Oh, my god, the state bless me with your omnipotence and save us all from this recession. I know you know all our hearts and can fix all problems because you know the best path for each one of us thy children. Oh, my god, the state save me this day for I have sinned and wish to be saved for only the central planners can save us now. Federal reserve, you are my god and I know you will save me at this time of turmoil.

Steven Ayres said...

Sorry, I can't resist:

Oh, my god, the profit motive, bless me with your omnipotence and save us all from this recession. I know you know all our hearts and can fix all problems because you know the best path for each one of us thy children. Oh, my god, the profit motive, save me this day for I have sinned and wish to be saved for only the international capitalists can save us now. Equities market, you are my god and I know you will save me at this time of turmoil.

Jon said...

:) Yeah, I guess it's if you believe in God or not. Do you replace God with the state or do you trust him to help guide each of us in our lives. I for one don't believe people that don't know my individual circumstances can know how to regulate me. It's been proven false over and over again. You always hear the excuse yes but it would be different if... Back in the day the liberals loved Russia and saw it as the epitome of what is right in socialism, etc. But once it collapsed and we saw its true form people distanced themselves from it as fast as possible.

BTW, everyone always calls me a Repub tea partier. I am not, I'm a hard core libertarian that likes the idea of anarchy. Just so you don't have any pre misconceptions.

I found the difference between democrats/repubs and libertarians is that democrats/repubs advocate violence while libertarians don't, I guess that's why I like their ideology so much, just tired of the killing.

Steven Ayres said...

Yet as guiding principle you profess religion, the primary justification for the most amazing and savage violence throughout human history.

I'd be interested in hearing how you reconcile libertarian ideology, which is devolves to the primacy of the individual, with religion, which essentially erases the individual.

Jon said...

Well, I have to say that I always have the right to change my mind. At this stage in my life I am learning a lot and am trying to understand as much as I can about the world, public schools didn't get me interested in the questions of what is freedom and what are the core principles of government.

Interesting questions you ask. Does religion erase the individual? Isn't religion about the individual. In my case Christianity, emphasizes the individual and each persons role in helping others come to learn of Christ. At least that's what I get out of the teachings. Yes, it does seem some or many religions try to smother the individual but the core teachings suggest that it should not be the case. That's why we learn, right?

I would say government does a better job of getting rid of the individual than religion. You only need to look at the public school system to see that. And they try and get you at a younger and younger age every year. They assume all the students learn in the same way and suppress the individual with mind altering drugs.

So here is a list of what religion teaches vs what the state teaches:
1. Private property vs. public ownership
2. Personal responsibility vs. collective "guilt"
3. The right to self-defense against aggression vs. ask the "society" (i.e. police) to help you and otherwise guilty until proven innocent
4. Self-reliance & hard work vs. entitlement & laziness
5. Charity vs. income redistribution
6. Non-violence vs. docility
7. Families as private self-governing units vs. state control over your private life
8. Laws of spiritual guidance vs. "enemy of the people" treatment
9. Decentralization vs. total control
etc.

As for religion being the cause the cause of the most savage violence throughout all history, I would say that it was the state manipulating the religious but the core tenants of Christianity are just the opposite. It's unfortunate that the state has preyed on people's fear and used religion as a rally cry but true believers would be appalled by such sentiments.

Here's a couple articles that can go into more detail about religion and war and religion and the individual:
http://www.lewrockwell.com/vance/vance143.html
http://mises.org/daily/3639

Thanks for questioning me on these points and getting me to ponder on the questions more. It's nice to learn more and I know so little!

Steven Ayres said...

Your list is amazing. All I can say is I hope you'll keep seeking, and bear in mind that learning anything new requires that we resist the reflex to see what we want to see.