With so many tools of information at our disposition nowadays, the ability to properly weight the quality and value of the news we receive on the constant basis has become quite a difficult task. Who writes those articles about the next asset boom? What are their biases, education, understanding? Are those writers and TVs personalities consciously trying to deceive people or are they just pushing the merchandise for the retail investors? There seems to be too much information and most people just don't know what to do about it. This goes counter to the "objectum" of the concept of information, which is basically to help individuals make better decisions for the future. You must " know" in order to " act"; but how can you properly take actions when the medias are bloated with contradictory news every minute of the day?
Austrian economics can shed a light to these problems. We live in a world where "keynesianism" reigns supreme within academia, and in the financial media whose analysis and studies are often built upon those corrupted principles. Quite clearly, Bad information always leads to ruinous action while good, reliable, and sound paradigm can help an average individual protect his little wealth...and sanity. With trillions of dollars being printed by various central banksters around the world, no one on his right mind should be surprised to watch the crowd of young, angry, hungry, and unemployed people rise on the streets of London, Paris, Cairo, Tunis, Bombay, and Libreville calling for the heads of the " State". For every cause, there is an effect; yet very few are able or willing to connect the dots; especially in the mainstream news. This is clearly insane!
Keeping one sanity should therefore be the "optimum objectum" of an investor and speculator for one can never tell what the Obamas and Sarkozys will come up with the next time around. This means that ones ability to weight " proper information" from the concocted deceit might as well be a sign of sheer genius given the world we live in.
I am one of those who believe that " Austrian economics" is the best available paradigm that can help individuals weight and anticipate the news they receive on the daily, hourly, minutes...and seconds basis. Austrian economics is just that good! The uniqueness about Austrian economics is that it properly defines the concepts that are used by individuals to make economics decision. Concepts like inflation, recession, deflation, interest, price, money, entrepreneur, production are approached from the reality and the visible. While most schools of economics tend to be self-contradictory, Austrian economics is based on a sound theoretical continuity that began 3 centuries ago with...Richard Cantillon!
From " Richard Cantillon" to Peter Schiff, Austrian investors have been able to stay clear from the moral hazards that arise when government manipulate "prices" and " money". Based on their understanding of the causes and booms and busts, Austrian investors have profited when the markets, driven by " irrational exuberance", go up and most importantly, when they crash into reality!
A lot of people have tried to give a new name to " THE AUSTRIAN SCHOOL", I think " the sanity school of economics" will be perfectly appropriate given the " crazzzy" actions of governments and central banks in our daily lives. To remain sane, to sleep calmly when the world is burning or rather, when insane people are burning the world; this should be the objective of sound investing and Austrian economics can help you get to that apex.
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