This is a documentary that is long overdue, written from the perspective of the Austrian School. These are the economists of Business Cycle Theory — the theory that predicted our boom and bust.
I invite you to watch this film and make up your own mind. Austrian School views were prevalent up to the 1930s, when politicians embraced the ideas of John Maynard Keynes. Tested to destruction, Keynesian policies were finally dropped by policymakers all over the globe, only to be replaced by an economic framework that used the same methodological tools.
Stressing money as the Alpha and the Omega, Monetarism came to prominence in the 1980s. By the 90s it had faded into the void, replaced by politicised central bank interest rate manipulation and attempts at “demand management”. The failure of this latest form of economic central planning is what we observe today.
The Austrian School, being the only school showing the errors of all of the approaches above, is slowly regaining its influence. This film will do its bit to spread our ideas. It is a crowd-funded documentary, so if you enjoy the film I urge you make a donation.
The is very good – and important to reach non English speakers.
The central truth is that those who follow Irving Fisher (the modern monetarists) are as much to blame for the current crises as the Keynesians are.
The idea that it is O.K. to increase the money supply (including the “broad money” supply – bank credit) as long as the “price level” does not go up, is a fallacy. Yet it was firmly held to by Alan Greenspan and co.
As for further absurdities (such as any level of lending is also, by definition, the same level of saving – as borrowing and saving are an “idenity”) – this would be laugable, if it were not for the “little” problem that such thinking may destroy our civilisation.
What has been done (and is still being done) may not, legally, be “fraud” – but it is incredibly destructive and it is based on the denial of both objective reality and the laws of logical reasoning.