Gathering of three minds to put on a conference that is a renaissance gathering of freethinkers. My idea has been the Freedom Movement broadly defined. Host politically what does that mean . Guest economic and maximum freedom libertarians we are not anarchist although we do have some here and it is growing. The ada is most libertarians are like hertz of cats face seldom get together to conspire. [laughter] so my idea is they dont do any live streaming. You can buy the tapes after words but 2200 people and plan of a wide. Organize libertarianism . Is working. I am in economist growing up in Portland Oregon that is the intellectual town in the Worlds Largest bookstore for i have been the intellectual type so the renaissance man is correct. And then to have a ph. D. Of economics my family lives in death star. That is what we call it but we a got tired of the rat race we lived in the bahamas life in living color recede enough in taxes to buy a flat in london then removed back to orlando no revenue york the Financial Center of the world. I have been writing the investment newsletter since att taught at columbia. Now i am at the same ising penitentiary so i have had of varied life. Married, five children, my wife runs the and some Film Festival here. So relive a fun life and it is constantly changing 57 we will talk about your new book a viennese waltz down wall street but teaching at sing sing . It is part of Mercy College in. Privately funded education for the four Year College Degree program for the hardcore inmates better in their for murder or worse and they can get a College Degree so when they get out if they will have some kind of skill. The biggest problem is recidivism did not have the skills so they end up going back to what they know is drug dealing or theft then they end up 60 back in prison. With this program, it is so successful i think the recidivism is zero because they all get decent jobs. I teach economics and finance my wife teaches English Literature and by sun has a film about that hbo made coming out next year called sing sing university. You can see on hbo that whole story. Host your most recent book mark skousen a viennese waltz down wall street adventures on the road and in the markets what is austrian economics . Guest a free Market School of economics that is a little bit different than the monetary Chicago School of little different from keynesian or marcus one dash marxist. Vietnamese comes from the university of vienna the original founder carl was a journalist who covered the stock market why have the connection and. But austrian economics is with the Adam Smith School a way to improve the model with a system of natural liberty and a firm belief of limited government, balanced budgets, a pro save being, a sound money, Gold Standard where something to control inflation. Critical of the Federal Reserve raising money spending plan deficit spending everything today would be opposed by the Austrian School. Host what happened to 1971 . Guest so many dollars had been printed you could no longer maintain 35 per ounce Government Guarantee Program for gold if because the french was going to the u. S. Government to say we will give you 35 to because we know the gold is worth more. So nixing close the window. Host did you oppose it at that time . Guest absolutely. The solution was control inflation and stop printing dollars but instead he decided to say we will eliminate the gold window we dont want to lose any more to the french so the price took off today it is over 1,200 per ounce so that is a reflection of the of stationary nature of the reserve. The Austrian School who would regulate Friedrich Hayek who won the nobel prize, wrote that the Federal Reserve is the engine of inflation in does the control its but encourages it. That is a different view from todays zero of the fed does as with other goals is to keep inflation down. It has been 100 years as the Federal Reserve has been established. Kim and the United States inflation was virtually a nonexistent except during the time of civil war. But it was nonexistent that it has gone up 30 fold 3,000 percent they showed this incredible charge. That there is no inflation at all then suddenly it takes off. There really is the engine of inflation not the defender of the dollar like it should be. Host who are contemporary austrian economists . Guest a couple of them are here. We have a premier economist at george mason. Roger garrison from Auburn University and a number of other economists moviegoing to hillsdale college, nyu has a few, i would consider myself one of the premier supporters of the Austrian School and i have applied it to the investment world. I call it a viennese waltz down wall street not just to connect it to the Austrian School but the traditional view that stock prices are a random walk down wall street. Aicher chuck my title from random walk down wall street. I reject that notion completely. I would say it is more like idiots. They dont make random decisions they make deliberate decisions why are they buying or selling where you here today or interviewing me . You had a purpose to come here stock prices are the same way we could be fooled by randomness so the stock prices are not random they are purposeful but we dont know what motivates a person to buy and sell. Host mark skousen does the government to anything to assist markets paul . Been back absolutely i am a limited government tepper person with rule of law of libel and even common law or natural law but this is a concept of the discovery process that involves the new york stock shane sure the nasdaq developing their own rules then they are set in in place but the government often interrupts and artificially creates administrative rules how better counter using surveys oxley with a bad piece of flawed legislation dodd frank imposing regulations way would be very much opposed to this suze maximum freedom to go after the fraud peddlers but the problem with the sec and other agencies is is they failed to catch the thieves and tell after they are exposed. Verdi rid off as a perfect example. They were approached several times that exposed the sec and they would not listen. But what did congress do . Tripled the budget afterwards saying you missed at they said we did not have been much enough money but it is flawed because as the artificial sense of security that investors say he must be legitimate because the sec would not allow somebody like that to go on for dozens of years i will put money with them but if we didnt have that and everybody would be much more skeptical to investigate just like banks with a 100,000 insurance is the bank making many . You are insured for 100,000 that is bad finance you what those incentives to make sure that Caveat Emptor let the buyer beware. Theres too little of that in todays todays world. Host who is a written for today . Guest a viennese waltz down wall street is written for the average investor to have a systematic approach to the investing who believes one of the focuses is on japan airship that people love stories. Yes you can buy the index fund jack vogels approach with vivian guard front but most people who like the defense or the action it is not a gamble there is a difference between investment and speculation but i would say that people love stories this is what they dont get if you want to hear a great story of the individual stock increasing dividends were earning more money or a new product of rumor about the buyout i have been writing my own newsletter since reagan was elected i am a survivor and i started off by recommending the index funds , but that did not excite people but i would do storytelling of individual stocks like apple or ibm or microsoft then people to get excited these are real people not like a drunken sailor is buyers have been enllers. Sellers. There is the excitement on wall street so my book is written for the intelligence investor who was interested in applying a new school of economics