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

If there is anything I am a sucker for, it is lists of “suggested reading”, “required reading”, etc. A frequently reader of this site or similar sites will most likely see the same recommendations for books to read - “Human Action” by Mises, “Man, Economy, and State” by Rothbard, “Atlas Shrugged” by Ayn Rand, etc. While these are stupendous and highly recommended books, I feel there are various books (and other things) that I feel are underrated and recommended reading by me. I am not going to limit myself to books but also include other media I recommend.

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.

Here’s a great article from mises.org that injects some reality into the whole discussion about the exploitation of the third-world. While I’m the first to point out a lot of the ugliness that the US and other developed nations are responsible for, this article highlights an important piece that’s being left out of the debate: low productivity.

With the economy worsening we can expect criminals to become more bold, and as we have seen: they don’t seem to be detered by cameras.

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.

Governor Sanford of SC went to congress recently and told them that he doesn’t need a bailout.