For fellow fans of the Austrian school, you’ll love this detailed presentation by Marc Faber in which he lays the smack down on the Keynsians.
Faber starts his presentation by pointing out that as recently as 1970, all investment banks were privately held. The culture has since changed quite a bit, as the partners running these companies are no longer playing with their own money, but rather with other people’s money.
Lines of the presentation:
- When a reader tells Faber he is not seeing inflation personally – because he lost his girlfriend and his costs are down 30% – Faber replies “wait until you see the replacement costs.”
- When commenting on how the poor spend 50% of their income on food (and thus suffer more from inflation: “If you are a partner at Goldman Sachs, it’s not likely that you will spend half your income on food and energy – unless you have a very high consumption of cocaine.”
You can watch Faber take Keynsian economics out to the woodshed here:
Ed. note: Last month I had the opportunity to see Marc Faber present live at Agora Financial’s Vancouver Symposium.
Hat tip Zero Hedge for original link/post.