Here we go again…

As world stock markets have continued to climb to cyclical – if not all-time – highs, it has become almost the norm for industry Talking Heads to season their smatterings of media insight with a brief, talismanic expression of scepticism, uttered partly to appease the ever-jealous God of the Markets but mainly so as to be on record as ‘having foreseen the crash’ as and when one eventually occurs.

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Give us another Oil boom

Dear Lord, Y’all give us another oil boom…

If there is one sector of the US economy where an Austrian-style Boom-and-Bust bust has taken place, it is the onshore oil industry – though, by extension, other primary resource industries, such as metals and mining and farming have also suffered in the ongoing aftermath of the general commodity bust.

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The Austrian Prescription

At the start of the year it has become wearily traditional for us pundits to offer one of two genres of prediction.

The first takes the form of a genuine—if ultimately foredoomed—attempt to lift a ragged corner of those thick shrouds of unknowability which separate today from tomorrow. The second combines such futility with a certain arch attempt to make one’s name in the event one chances upon what can afterwards be trumpeted as the inspired prediction of what the consensus presently regards as a highly unlikely event. Continue reading

Busts are not ‘inevitable’

There are those who can display a solid grasp of the oft–misunderstood mechanics of credit and money generation by banks and who are also well aware of the episodes of endemic mistakes this entrains in in our system. Yet, perhaps because they possess a certain ideological bent, many such commentators cannot seem to steel themselves to take the next step and admit that very little of this has anything to do with a free market, or that those mistakes are decidely not an intrinsic feature of what they like to call ‘capitalism’.

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