Wednesday, 1 June 2005

Quiz: Are you an Austrian?

Here's a quiz for econo-geeks: Are you an Austrian?

No, it won't tell you whether you like neat pastries, Klimpt and operetta, ubt it will tell you if you're an Austrian economist, or likely to give houseroom to those who are. So are you an Austrian? Or are you perhaps a Keynesian, a Chicago-type, or a socialist? Go on, find out and 'fess up here.

I score 92% Austrian. Apparently I'm a little too Chicagoan. ;^>


  1. first post AND 100% austrian
    Result! :-)

  2. My attention flagged a little, so 95% for me. I think anon. seriously needs to consider buying some lederhosen.

  3. I can't resist this one. You tell me ~what is gold~ gold has NO *intrinsic* value whatsoever - why not sand? Even if you think it *does* have value why would you support a currency peg? I still think the euro (The Bundesbank peg) will only last a few more years. The last time it was tried was during the Roman Empire and we all know what happened to that. And Austrian's oppose TA saying you can't graph or predict human action - well I'm sorry but you can - that is a huge part of behavioural finance and you ignore it at your peril. It's not rocket science - Pavlov's dog did it.

    Like Caplan, I support good economics, and most Austrian economics are not good, as their forecasting proves. Mises org made the worst DOW call in history (sell late 2002-3) DOW 7200->10500!! I can't believe you support such concrete bound losers Peter. That is evasion on a massive scale. F.E.T.E.

  4. PS DJI is close to its all time high so you tell me why Austrians are right and I am wrong. You can't- that is because they are FUBAR. And nice drop on NZX today. Good time for value investors to move in, as 3000 is fair value imo. Consumer confidence is a contrarian indicator, and always has been.

    In terms of TA has it right. Not all Objectivists are die-hard Austrians. Some actually make money.Don't say I don't tell you anything.

  5. And no reply huh. Guess you shorted the DOW and you know I am right.

  6. Ruth said, " You tell me ~what is gold~ gold has NO *intrinsic* value whatsoever."

    No, nothing has intrinsic value, it's an invalid concept. 'Value' is what ~we~ bestow. That's an Austrian point. :-)

    As value isn't intrinsic to things, how we choose to store value is up to us. We might be wrong. Commodities ~such as gold~ have been and are one such way, and if chosen by enough people as a store of value it can and historically has led to it being the standard of choice. Absent the modern phenomenon of fiat currencies backed by nothing but paper and the ability of governments to tax, such a standard is of some use. Context and choice is what would make it the standard, however, not government action.

    Now as I'm not a supporter of the Euro, I'm not sure what your point is there except perhaps that you're not an advocate of arbitrary government-imposed currency peg. Neither am I.

    But what is it you are an advocatre of? A fiat currency? That paper should be backed with more paper and government promises?

    "Mises org made the worst DOW call in history (sell late 2002-3) DOW 7200->10500!!"

    If Rockwell and co did make a bad call, as they often do -- take the Iraq war for example -- it's a little, um, concrete-bound isn't it to damn Austrian economics for it? Economic theory doesn't guarantee success as a trader.

    After those points of yours, I run into an acronym problem, and a problem understanding what your real point is? I believe you promised us a good 'fisking' of Austrian economics at some stage?? Perhaps if you do that we might see what you're arguing against. As it is I find myself in the position that you think you've put an argument together, but I can't see exactly what it is.

    Are you for example against the idea that entrepreneurial activity is central to economic activity? That values are bestowed by human beings? That savings = capital? That regulations distort markets? That profits tend to equalise across markets over time? Do yo udisagree with Bohm-Bawerk's explanation of capital formation? With Say's Law? With Hazlitt's criticisms of Keynes? With Reisman's harmonisation of Austrian and neo-classical economics? With Greenspan's arguments that gold can be a protection of economic freedom?

    In short, what's the beef? Put a coherent argument together, Ruth, so we can understand what exactly your problem with Austrian economics ~is~. Austrians talk about a lot more than just gold, as I'm sure you know. Make your point.

    "And no reply huh. Guess you shorted the DOW and you know I am right." Uh, no, I was enjoying a very nice Thai in Kingsland actually. ;^P

  7. Where in Kingsland? Did she give you her phone number?

  8. wow ruth, I'm impressed :-o

    Give me some hot tips on sharemarket please. I'm just starting out here. I'm planning to buy some TWR (Tower), TEL (Telecom), and AIA (not sure what it is, but heard a lot good things).

    Also, is this a good time to buy some USD? is this the starting downturn point for NZD?

    Sorry for the threadjacking.

  9. Ha ha - Nice of Ruth to show us quite how minimal her understanding of the incentives behind human exchange is. Peter is right - nothing has *intrinsic* value and all value is subjective - and Austrian economics is right in that regard at least. That much at least should be clear to anyone.
    If Ruth is so good at predicting human action, perhaps she'd like to tell me what I'm going to have for supper tonight? And whether I'll like it, and how much I'll like it.
    The rest is just state worship. Gosh - who would print the money if it weren't for govt? Who would set the interest rates?

  10. Gold is more valuable than sand because of its characteristics and availability.

    Not because we give it more value. You can't possibly give sand more value than gold, even if you want to.

    (unless ofcourse the sand contain something more valuable than gold)

    Its just demand Vs supply, which is applicable to money and interest rates as well.

    caskman, I think society is predictable, not 100%, but overall quite predictable.

    Once in a while there will be a shift in our pattern, but mostly, we just stick to the same activity day by day.

  11. 86% - I choose mostly Austrian but a few Chicago.


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