The recent financial crisis has spurred a multitude of reactionary editorials in the press, mostly calling for increased regulation of the financial sector and a bailout for the auto industry. This reflects economic illiteracy and a misunderstanding of the root causes of our current financial crisis. I think this ignorance is due partly to a reliance on our political leaders as ‘experts,’ when in fact most know little more than the basics when it comes to securities markets, the effects of deflation, or how fractional reserve banking impacts the economy.

One key attribute that gives money value is scarcity. If something that is used as money becomes too plentiful, it loses value. That is how inflation and hyperinflation happens

Dan Mitchell of the Cato Institute discusses Keynesian economics in this short video.

For those who may not be aware, America has had an embargo policy against Cuba since 1963. The idea is that we need to “starve out” the Cubans so they’re forced to accept democratic principles and the free market.

I’ve often recommended this documentary to friends as a great jumpstart to understanding our system of money. It’s short, fun and animated, which certainly is a welcome change from the usual talking heads.

I have just finished reading what I believe is one of the most important books in existence. The Creature from Jekyll Island by G. Edward Griffin is the story of the Federal Reserve System from its conception to its modern day form. The tale is one of collusion, subversion, criminal acts, and the destruction of American and world sovereignty for the gain of a few powerful men.

Behind the paper-thin curtain of hype and distraction is the ugly reality of predatory globalism and the New World Order. Obama is no different than Bush, except he is more intelligent and more palatable to the masses. Democrats have the same agenda as the Republicans, albeit with differences on a few social issues, which are played up in the corporate media. But when it comes to financial and foreign policy — and the two are intertwined — there is no difference.

With the ever expanding financial problems in the US and the World, state governments are having trouble coming up with the money they have promised to the unemployed. Not least of which is New York State.

In the Keynesian framework, during a recession when consumers tend to lower their outlays, it is the duty of the government to step in and boost its expenditure. For instance, the government could employ various unemployed individuals to dig holes in the ground.

It’s almost Halloween and the kids are getting ramped up for the biggest sugar rush of the year. But the real trick-or-treaters will be in Washington.