Blogging My Business Cycle in Twitts

Between the last Oct. 24 and Nov. 14, I have written a sequence of twitts in an attempt to enumerate some Hayekian, Rothbardian, and Misesian approach of Austrian Business Cycle Theory -ABCT. This approach is a sound theory of boom and bust economic fluctuations. I know that these fluctuations are always caused and fueled by loose fiat money issued by a central bank and banking system. Men who work in these banks do something like that a fraudulent business issuing loose money. People in a society, which are coercively -by state force an state violence- compelled to use this out of thin air money, must learn to protect their money from these fraudulent state supported bankers men.

All countries around the world have adopted fiat money as both their legal and forced currencies. Each central bank hoards an strict monopoly on money; only central bank can issue legal money. Commercial banks also make their business issuing fiat money through credit expansion. In this way such fiat money issuing system promotes some privileged business protected by state. So, to protect our money from the fraudulent state supported men will be not an easy task. Then we must hope that, while all society around the world stays on violently forced fiat money used to do interchanges and to sign contracts, economic boom and bust will recurrently occur. Today, several economic systems on the planet are going to an economic collapse. Following, I'm blogging all sequence of my twitts about of ABCT and its relation to the ongoing world economic downturn.

A business cycle theory can't be establish for a purely unhampered (free) market. So a business cycle occur in a hampered (not free) market.
24 Oct

The main feature of a cycle is the sudden revelation of business errors... a sudden manifestation of a cluster of errors...
24 Oct

So a sound theory of cycle must explain, in details, such revelation...
24 Oct

We see that such cluster of errors are only revealed after the boom take place, and no businessman really grasps this before the crash...
24 Oct

So, no free market force is the fuel source that is fueling such manifestation...
24 Oct

Thus, this force is not derived from an element of unhampered free market...
24 Oct

We must remember that an unhampered free market is the best economic institution for an spontaneously organized social cooperation...
24 Oct

In a free market -spontaneously organized- society, reigns an steady economic order in price, growth, income, production, demand, employment
24 Oct

If an strange force disturbs an unhampered free market, then such force disturbs that spontaneous order risen from this free market...
24 Oct

Then, the resulting order will be not both so spontaneous and so organized...
24 Oct

It is this deficiency in spontaneity and a persistent disorganization which induces people to commit recurrent and uncontrollable errors...
25 Oct

These error remain growing into society while they are fuelling by such strange force hampering free market...
25 Oct

This force, given it's not a natural force from the free market, eventually succumbs while economics is at the top of the boom...
25 Oct

At this time, errors suddenly arise and free market operations must back on track. From here an economic fix must happen. A crash has begun.
25 Oct

A question I ask is why this violent invader force succumbs?...
26 Oct

My answer is that several but all individuals realize the dangers derived from no free market spontaneity and no free market organization...
26 Oct

From this moment such violent invader force will be no more effective because all individual identify this force as the cause of errors...
26 Oct

My second key ask is, why all individuals realize about such dangers just prior to crash?...
27 Oct

I have only one response to this: only the complacency and ignorance of the public permit the situation continue...
27 Oct

Only the complacency and ignorance of the public makes them slaves of such violent invader force...
27 Oct

Once time such complacency and ignorance have vanished then the violent invader force succumbs, men became free and they can see the dangers
27 Oct

My third question is, why the complacency and ignorance does not last to perpetuate the boom?...
29 Oct

The complacency and ignorance lead to an economic inconsistency between localizations and localisers of goods in an economizing complexity.
31 Oct

In a boom such complacency and ignorance are generalized. So the economic inconsistencies are generalized too...
31 Oct

Trivially, an generalized inconsistent economic system is explosive. Then, it is not perdurable and its close fate is the crash...
31 Oct

An inconsistent economic system looks like an economic system artificially undermined by not profitable investment projects...
6 Nov

My fourth question is, what, in business cycle, this violent invader force consist of?...
6 Nov

This violent invader takes the shape of fiat credit expansion...
6 Nov

Fiat credit expansion feeds the boom -artificial expansion of not profitable investment projects-...
6 Nov

Simultaneously, fiat credit expansion creates destructive inflation in a boom, and its unavoidable solution is a crash...
6 Nov

What the crash consist of?
6 Nov

The crash consists of two unavoidable results: currency collapse or prices collapse...
6 Nov

So, my abstract on business cycle theory looks like following three twitts:
6 Nov

1-A violent force invades the free market using fiat credit expansion and inflation...
6 Nov

2-A boom appears in the way of not profitable investment projects invading all economy...
6 Nov

3-An unavoidable crash emerges, to fix this economic inconsistence, in the form of currency collapse or prices collapse...
6 Nov

What about the relation between the business cycle and the world economic collapse?...
6 Nov

Today, several but all countries around the world are in the final stage of a fiat- credit expansion boom. The next fate is a world crash...
6 Nov

Where do these violent forces that destroy a free market -and a society- come from?
9 Nov

These destructive forces come from the state...
9 Nov

State creates fiat money -inflation- destroys the value of money, expands credit through banking system and promotes artificial investments
9 Nov

In this way the state hampers the free market, causing a boom and its corresponding crash...
9 Nov

The men of the state use theirs coercive and compulsive powers -its violence- to promote and cause this crisis and ruin in a society...
9 Nov

Thus, the statesmen are a privileged class of violent criminals who get rich while the entire society suffers from the crisis...
9 Nov

The societies have an aggressive malignant tumor that invades. This tumor is the state...
9 Nov

Whether societies want to continue prospering they should remove the tumor, they should abolish the state...
9 Nov

Today, the state creates and promotes violence, what is inconsistent with the principle of not violence from which the society depend on...
9 Nov

There are no such things as ends of or actions by groups collectives or States which do not take place as actions by specific individuals...
13 Nov

So, the government doesn't exist. Only exist men that act to, and are controlled by, other men who are recognized as government men...
14 Nov

Of where the credit expansion come from?...
14 Nov

Credit expansion come from two possible sources: a) from government men, and b) from banking system men...
14 Nov

a)The government men expand the credit through fiat money issues...
14 Nov

b)The banking system men expand the credit through fractional lending...
14 Nov

These two sources of expansion provide money created out of thin air...
14 Nov

These two sorts of men provide money created out of thin air...
14 Nov

A consistent economic activity structure can't work so much time with money created out of thin air...
14 Nov

So, a monetary system with money created out of thin air collapses sooner than later...
14 Nov

So, an economics system, under a democratic society, is doomed to collapse because of evil will of men who create money out of thin air...
14 Nov


Of course, you can read the precedent explanation on jcveagle because I'm Blogging My Business Cycle in Twitts.