Monday, June 25, 2007

BIS Speaks Austrian

This post from the WSJ's Economics Blog links to the annual report of the Bank for International Settlements that analyzes the global economy in Austrian terms. For those of you who are new, I consider Austrian Economics to be the set of economic theories that are closest to the "truth" about economics.

Does the U.S. risk repeating the mistakes that led to the Great Depression? The Bank for International Settlements’ annual report, released Sunday, suggests that it does, and offers a remedy steeped in the doctrine of Austrian economics.

The idea that we could repeat the same mistakes that led to the Great Depression is a frightening one. It is also entirely possible since so few understand exactly what caused it and that the New Deal probably extended it. There is also an editorial in the WSJ today by Amity Shlaes about the limited criticism of the New Deal over the years.

I'll be reading through the BIS annual report this week and will report anything that seems important and relevant to us as investors.

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