Monday, July 20, 2009

Suppose There Was An Economist Who Foresaw, in 1999, the Troubles Now Occurring in the Economy?

It would be pretty impressive, right?

It was done. By economist Richard Ebeling using Austrian Business Cycle Theory.

Roughly ten years ago, a reporter did an interview, about the Federal Reserve and Greenspan's monetary policy, with Ebeling that appeared on May 2, 1999 in the Detroit News.

The reporter has reprinted the interview on his blog today, pointing out Ebeling's "prevision" in seeing where Fed monetary policy was leading: serious interest rate distortions, imbalances between savings and investment, and an inevitable economic correction.

Here's the interview. It's hardcore Austrian economics, the way economics should be. It is the best explanation (pre-the current crisis) that I have seen linking elements of the 1920's to what is now occurring. Add Ebeling to the list that includes Peter Schiff, Stefan Karlsson,Mark Thornton and me. All of us using Austrian theory to warn about current problems, way in advance.


  1. I think Doug Noland of the Prudent Bear does a very good job as far back as 2000.

  2. I just read a few other things writte by Ebeling. He seems to really know his stuff. He reminds me of the old time economists like Hazlitt. He uses great examples.