Welcome and Happy New Year!

Thanks for coming to my blogsite! The goal of this site is to give you the best economic and financial information that's based on fundamentals from an Austrian economic point of view.

What is Austrian economic theory compared to Keynesian theory? Keynesians believe that if a government can simply borrow and spend enough money, that's enough to keep a country's economy out of any recession. The problem with this view is that eventually you have to pay this incurred debt back, and it wreaks havoc on your country's budget.

The Austrian view is based on 'hard money' (i.e., currency backed by gold and/or silver), and sound fiscal policy. Namely keeping borrowing and spending to an absolute minimum. Most modern economists don't see anything wrong with running huge federal budget and current account deficits. Heck, we've run them in the past and nothing bad happened - right?

True, but eventually you have to pay interest on these deficits and debt. These conditions also contribute to inflation of your currency, lowering the purchasing power of each dollar you hold. As a country, we're in very interesting economic times. There will be challenges in the future, but also great investing and business opportunities.

I'll go over these scenarios as I see them in future posts. In the meantime, I highly recommend you check out several websites:

www.DailyReckoning.com
www.FinancialSense.com
www.investmentrarities.com
www.321gold.com

All have excellent analysis and commentary on economic and financial issues. Best Wishes for a Happy, Healthy, and Prosperous 2006! Until next time...