newswars--2020-09-25--Obesity Impacts Brain’s Ability to Change, Adapt

A world-first study has found that severely overweight people are less likely to be able to re-wire their brains and find new neural pathways , a discovery that has significant implications for people recovering from a stroke or brain injury .
In a new paper published in Brain Sciences , researchers from UniSA and Deakin University show that brain plasticity is impaired in obese people , making it less likely that they can learn new tasks or remember things .
Using a series of experiments involving transcranial magnetic stimulation , the researchers tested 15 obese people aged between 18 and @ @ @ @ @ @ @ in a healthy-weight control group .
Repeated pulses of electrical stimulation were applied to the brain to see how strongly it responded .
The healthy-weight control group recorded significant neural activity in response to the stimulation , suggesting a normal brain plasticity response .
In contrast , the response in the obese group was minimal , suggesting its capacity to change was impaired .
UniSA researcher Dr Brenton Hordacre says the findings provide the first physiological evidence of a link between obesity and reduced brain plasticity .
Obesity is based on body mass @ @ @ @ @ @ @ ratio between height and weight to determine body fat .
An adult who has a BMI between 25 and 29.9 is considered overweight .
Anything above that is obese .
“ Obesity is already associated with a raft of adverse health effects , including a higher risk of cardiovascular disease , metabolic disorders and dementia , ” Dr Hordacre says .
“ For the first time , we found that obesity was associated with impaired brain function , adding further support for the need to address the obesity epidemic .
“ A growing @ @ @ @ @ @ @ million according to the World Health Organization — which not only has health consequences but is a serious financial burden for global health systems , ” he says .
“ These new findings suggest that losing weight is particularly important for healthy brain ageing or for recovery in people who suffer strokes or brain injuries , where learning is fundamental for recovery.
” Stroke is the third most common cause of death in Australia and the leading cause of disability , affecting speech , cognition and memory .
The ability of the brain @ @ @ @ @ @ @ recovery , Dr Hordacre says .
Worldwide , 15 million people suffer strokes each year , a third of whom die .
Alex Jones breaks down Amazon ’ s latest home security drone that flies inside your house .

A world-first study has found that severely overweight people are less likely to be able to re-wire their brains and find new neural pathways, a discovery that has significant implications for people recovering from a stroke or brain injury.
In a new paper published in Brain Sciences, researchers from UniSA and Deakin University show that brain plasticity is impaired in obese people, making it less likely that they can learn new tasks or remember things.
Using a series of experiments involving transcranial magnetic stimulation, the researchers tested 15 obese people aged between 18 and 60, comparing them with 15 people in a healthy-weight control group.
Repeated pulses of electrical stimulation were applied to the brain to see how strongly it responded. The healthy-weight control group recorded significant neural activity in response to the stimulation, suggesting a normal brain plasticity response. In contrast, the response in the obese group was minimal, suggesting its capacity to change was impaired.
UniSA researcher Dr Brenton Hordacre says the findings provide the first physiological evidence of a link between obesity and reduced brain plasticity.
Obesity is based on body mass index (BMI) which calculates the ratio between height and weight to determine body fat. An adult who has a BMI between 25 and 29.9 is considered overweight. Anything above that is obese.
“Obesity is already associated with a raft of adverse health effects, including a higher risk of cardiovascular disease, metabolic disorders and dementia,” Dr Hordacre says.
“For the first time, we found that obesity was associated with impaired brain function, adding further support for the need to address the obesity epidemic.
“A growing number of people are obese — 650 million according to the World Health Organization — which not only has health consequences but is a serious financial burden for global health systems,” he says.
“These new findings suggest that losing weight is particularly important for healthy brain ageing or for recovery in people who suffer strokes or brain injuries, where learning is fundamental for recovery.”
Stroke is the third most common cause of death in Australia and the leading cause of disability, affecting speech, cognition and memory.
The ability of the brain to find new pathways is crucial to recovery, Dr Hordacre says. Worldwide, 15 million people suffer strokes each year, a third of whom die.
Alex Jones breaks down Amazon’s latest home security drone that flies inside your house.


newswars--2020-09-25--Trump Faces “Biblical” Challenge “Against Demonic Forces of New World Order,” Archbishop Warns

President Donald Trump is currently embroiled in a “ biblical ” battle against the “ demonic forces ” of the New World Order , an archbishop has warned .
In a letter intended to be read at the National Catholic Prayer Breakfast on Wednesday , Archbishop Carlo Maria Viganó noted in this upcoming election , Trump is fighting not only a political battle , but also a spiritual battle between good and evil .
“ The presidential elections in November represent an epochal challenge , a biblical challenge , the outcome of which will be decisive not only for the @ @ @ @ @ @ @ whole world , ” the archbishop noted in his letter , published at LifeSiteNews.com .
After declaring Trump “ the greatest defender of the supreme values of Christian civilization , ” Archibisop Viganó said he ’ s entrusting God to protect the president as he prepares to fight an “ extraordinary battle.
” “ He is preparing to fight against the demonic forces of the Deep State and against the New World Order , ” Viganó ’ s letter states .
“ I am at your side with fervent prayer , together with @ @ @ @ @ @ @ of good will throughout the world.
” The archbishop had previously referred to the upcoming election as a battle between “ the children of light and the children of darkness , ” the Washington Times notes .
It wants one thing .
Total power and control .
What would that spider say if it was made to take truth serum ?
Find out in this exclusive report from Alex Jones .

President Donald Trump is currently embroiled in a “biblical” battle against the “demonic forces” of the New World Order, an archbishop has warned.
In a letter intended to be read at the National Catholic Prayer Breakfast on Wednesday, Archbishop Carlo Maria Viganó noted in this upcoming election, Trump is fighting not only a political battle, but also a spiritual battle between good and evil.
“The presidential elections in November represent an epochal challenge, a biblical challenge, the outcome of which will be decisive not only for the United States of America but for the whole world,” the archbishop noted in his letter, published at LifeSiteNews.com.
After declaring Trump “the greatest defender of the supreme values of Christian civilization,” Archibisop Viganó said he’s entrusting God to protect the president as he prepares to fight an “extraordinary battle.”
“He is preparing to fight against the demonic forces of the Deep State and against the New World Order,” Viganó’s letter states.
“I am at your side with fervent prayer, together with millions of Catholics and with all people of good will throughout the world.”
The archbishop had previously referred to the upcoming election as a battle between “the children of light and the children of darkness,” the Washington Times notes.
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It wants one thing. Total power and control. What would that spider say if it was made to take truth serum? Find out in this exclusive report from Alex Jones.


newswars--2020-09-25--Alex Jones Executes Jeff Bezos Robot Drone With The Sword Of Truth

Alex Jones cuts down a globalist drone with the sword of truth to fight for humanity in the face of @ @ @ @

Alex Jones cuts down a globalist drone with the sword of truth to fight for humanity in the face of the post-human era.


newswars--2020-09-25--Study: Low-Level Alcohol Use During Pregnancy Significantly Impacts Child’s Brain Development

New research from the University of Sydney finds that even low levels of alcohol consumption during pregnancy can have an impact on a child ’ s brain development and is associated with greater psychological and behavioural problems in youth including anxiety , depression and poor attention .
Published today in the prestigious American Journal of Psychiatry , the study was led by the University ’ s Matilda Centre for Research in Mental Health and Substance Use .
The impact of low-level alcohol use during pregnancy on child development is relatively unknown and there has been extensive debate about whether there @ @ @ @ @ @ @ The researchers investigated whether any alcohol consumption in pregnancy was related to psychological , behavioural , neural and cognitive differences in children aged nine to ten years .
With a sample of 9,719 youth , this is the largest study to investigate the impacts of low-level alcohol use during pregnancy .
Low levels of drinking were considered one to two drinks per occasion with maximum of six drinks per week .
“ Our research found that even small amounts of alcohol consumed while pregnant can have a significant impact on a child ’ @ @ @ @ @ @ @ author Ms Briana Lees , PhD candidate at the Matilda Centre .
“ Previous research has shown that very heavy alcohol use , such as binge drinking , during pregnancy can cause harm to the baby .
However , this study shows that any alcohol use during pregnancy , even low levels , is associated with subtle , yet significant behavioural and psychological effects in children including anxiety , depression and poor attention .
“ This study is so important because in Australia , around 50 percent of women drink alcohol before they @ @ @ @ @ @ @ percent do so after they know .
The vast majority consume one or two standard drinks per occasion which this study shows is enough to impact the baby ’ s brain.
” In the study , 25 percent of children had been exposed to alcohol in utero ( in the womb ) , 60 percent of these children had been exposed to low-level alcohol use , and 40 per cent had been exposed to heavier levels .
Heavier exposure being three or more drinks per occasion or seven or more drinks per week @ @ @ @ @ @ @ levels of alcohol in-utero at any time during pregnancy experienced more psychological/emotional problems ( including anxiety , depression and being withdrawn ) and behavioural problems ( including poor attention and being impulsive ) than unexposed children .
There was a 25 percent increased likelihood of an attention deficit hyperactivity disorder ( ADHD ) diagnosis in children who were exposed to slightly heavier levels of alcohol ( approximately 36 drinks ) in the first 6-7 weeks of pregnancy .
Heavier alcohol use during early pregnancy was also associated with rule breaking behaviour and aggression @ @ @ @ @ @ @ of the child being diagnosed with oppositional defiant disorder than unexposed youth .
There were differences observed in brain volume and surface area among the exposed children which contributed to the psychological and behavioural problems .
The estimated number of drinks consumed during pregnancy ranged from 0-90 with the average being 27 .
The majority of drinks were consumed in the first 6-7 weeks prior to pregnancy knowledge .
“ Generally , the more a child was exposed to alcohol in utero the more severe the outcomes were , ” said Ms Lees @ @ @ @ @ @ @ if they were only exposed to low levels of alcohol during very early pregnancy ( approximately 16 drinks in the first six to seven weeks ) and then the mother stopped drinking .
The difficulty is many women don ’ t know they are pregnant at that early stage .
Senior author Professor Maree Teesson , Director of the Matilda Centre said these findings are important for families , clinicians and policy makers moving forward .
“ This research highlights the importance for women to be aware of the effects that even low @ @ @ @ @ @ @ brain development of babies , ” she said .
“ The safest option during pregnancy is to abstain from drinking any alcohol .
“ This information is also important for women planning pregnancies .
Even when planning pregnancy , it is safer to abstain from any drinking .
Any alcohol consumption from conception throughout the entire pregnancy can impact the brain development of their baby.
” Alex Jones breaks down Amazon ’ s latest home security drone that flies inside your house .

New research from the University of Sydney finds that even low levels of alcohol consumption during pregnancy can have an impact on a child’s brain development and is associated with greater psychological and behavioural problems in youth including anxiety, depression and poor attention.
Published today in the prestigious American Journal of Psychiatry, the study was led by the University’s Matilda Centre for Research in Mental Health and Substance Use.
The impact of low-level alcohol use during pregnancy on child development is relatively unknown and there has been extensive debate about whether there is a safe level of consumption.
The researchers investigated whether any alcohol consumption in pregnancy was related to psychological, behavioural, neural and cognitive differences in children aged nine to ten years. With a sample of 9,719 youth, this is the largest study to investigate the impacts of low-level alcohol use during pregnancy. Low levels of drinking were considered one to two drinks per occasion with maximum of six drinks per week.
“Our research found that even small amounts of alcohol consumed while pregnant can have a significant impact on a child’s brain development,” said lead author Ms Briana Lees, PhD candidate at the Matilda Centre.
“Previous research has shown that very heavy alcohol use, such as binge drinking, during pregnancy can cause harm to the baby. However, this study shows that any alcohol use during pregnancy, even low levels, is associated with subtle, yet significant behavioural and psychological effects in children including anxiety, depression and poor attention.
“This study is so important because in Australia, around 50 percent of women drink alcohol before they know they are pregnant, and 25 percent do so after they know. The vast majority consume one or two standard drinks per occasion which this study shows is enough to impact the baby’s brain.”
Study findings
In the study, 25 percent of children had been exposed to alcohol in utero (in the womb), 60 percent of these children had been exposed to low-level alcohol use, and 40 per cent had been exposed to heavier levels. Heavier exposure being three or more drinks per occasion or seven or more drinks per week.
Children who were exposed to low levels of alcohol in-utero at any time during pregnancy experienced more psychological/emotional problems (including anxiety, depression and being withdrawn) and behavioural problems (including poor attention and being impulsive) than unexposed children. There was a 25 percent increased likelihood of an attention deficit hyperactivity disorder (ADHD) diagnosis in children who were exposed to slightly heavier levels of alcohol (approximately 36 drinks) in the first 6-7 weeks of pregnancy. Heavier alcohol use during early pregnancy was also associated with rule breaking behaviour and aggression, with a 30 percent higher risk of the child being diagnosed with oppositional defiant disorder than unexposed youth.
There were differences observed in brain volume and surface area among the exposed children which contributed to the psychological and behavioural problems. The estimated number of drinks consumed during pregnancy ranged from 0-90 with the average being 27. The majority of drinks were consumed in the first 6-7 weeks prior to pregnancy knowledge.
“Generally, the more a child was exposed to alcohol in utero the more severe the outcomes were,” said Ms Lees.
“Children experienced negative effects even if they were only exposed to low levels of alcohol during very early pregnancy (approximately 16 drinks in the first six to seven weeks) and then the mother stopped drinking. The difficulty is many women don’t know they are pregnant at that early stage.
Senior author Professor Maree Teesson, Director of the Matilda Centre said these findings are important for families, clinicians and policy makers moving forward.
“This research highlights the importance for women to be aware of the effects that even low levels of drinking can have on the brain development of babies,” she said.
“The safest option during pregnancy is to abstain from drinking any alcohol.
“This information is also important for women planning pregnancies. Even when planning pregnancy, it is safer to abstain from any drinking. Any alcohol consumption from conception throughout the entire pregnancy can impact the brain development of their baby.”
Alex Jones breaks down Amazon’s latest home security drone that flies inside your house.


newswars--2020-09-25--Wild Video: Convict Flees Courthouse During Sentencing

A fugitive has been captured after more than three days on the run following a dramatic escape from an Ohio courthouse .
Nickolaus Garrison , 34 , had been convicted of felony methamphetamine possession and was sentenced to nearly two years in prison during a hearing at the Highland County Courthouse on Monday morning , the Times-Gazette of Hillsboro reports .
While officers were patting him down , Garrison bolted from the courtroom with three officers in hot pursuit .
As Garrison charged down a stairwall , sheriff ’ s deputy Ben Reno threw himself over the railing , landing @ @ @ @ @ @ @ ultimately escaped and was on the lamb until Friday when he was captured at a motel in Clinton County , Ohio .
He will now face additional charges stemming from the evasion .
Officer Reno reportedly suffered four broken ribs and a concussion during the fall , but is now recovering at home .
“ The deputy , unfortunately , went down the stairs headfirst in an attempt to try and catch him , ” said Highland County Sheriff Donnie Barrera .
“ I went out to the hospital and visited him when @ @ @ @ @ @ @ Hospital .
He was in good spirits at that time.
” Alex Jones breaks down how kneeling for the flag at sporting events has become a requirement in the culture of authoritarian outrage .

A fugitive has been captured after more than three days on the run following a dramatic escape from an Ohio courthouse.
Nickolaus Garrison, 34, had been convicted of felony methamphetamine possession and was sentenced to nearly two years in prison during a hearing at the Highland County Courthouse on Monday morning, the Times-Gazette of Hillsboro reports.
While officers were patting him down, Garrison bolted from the courtroom with three officers in hot pursuit.
As Garrison charged down a stairwall, sheriff’s deputy Ben Reno threw himself over the railing, landing hard on the stairs below.
Garrison ultimately escaped and was on the lamb until Friday when he was captured at a motel in Clinton County, Ohio.
He will now face additional charges stemming from the evasion.
Officer Reno reportedly suffered four broken ribs and a concussion during the fall, but is now recovering at home.
“The deputy, unfortunately, went down the stairs headfirst in an attempt to try and catch him,” said Highland County Sheriff Donnie Barrera.
“I went out to the hospital and visited him when he was getting treated at Highland District Hospital. He was in good spirits at that time.”
Alex Jones breaks down how kneeling for the flag at sporting events has become a requirement in the culture of authoritarian outrage.
Dan Lyman: Follow @CitizenAnalyst


newswars--2020-09-25--Shock Video – Joe Biden Tells Troops: “Clap for that, you stupid bastards”

A video unearthed from 2016 shows Vice President Joe Biden speaking to troops at a military base before he orders @ @ @ @ @ them as “ stupid bastards.
” The video , circulating on social media just days @ @ @ @ @ debate with President Trump on September 29 , appears to have been shot in March @ @ @ @ @ of Freedom ceremony somewhere in Southwest Asia , according to one YouTube upload .
And @ @ @ @ @ of the video with more context ( at 1:51 ) : Footage of the shocking @ @ @ @ @ fake news uproar from the mainstream media claiming President Trump has referred to both active @ @ @ @ @ as “ losers ” and “ suckers , ” which he has vehemently denied .
@ @ @ @ @ Donald Trump doubled down on the Atlantic hoax article that he called soldiers suckers and @ @

A video unearthed from 2016 shows Vice President Joe Biden speaking to troops at a military base before he orders them to clap, addressing them as “stupid bastards.”
The video, circulating on social media just days ahead of Biden’s debate with President Trump on September 29, appears to have been shot in March 2016 at a Presidential Medal of Freedom ceremony somewhere in Southwest Asia, according to one YouTube upload.
Joe Biden to our troops: “Clap for that, you stupid bastards” pic.twitter.com/9sqYPhkh3S — Jewish Deplorable 🇺🇸 (@TrumpJew) September 25, 2020
Watch from another angle:
And here’s another version of the video with more context (at 1:51):
Footage of the shocking remarks comes weeks after a fake news uproar from the mainstream media claiming President Trump has referred to both active and former military service members as “losers” and “suckers,” which he has vehemently denied.
During the 9-4-20 press conference Donald Trump doubled down on the Atlantic hoax article that he called soldiers suckers and losers.


newswars--2020-09-25--Pope Francis Attacks Personal Possession of Firearms in Message to United Nations

Pope Francis assailed the personal possession of firearms in a statement to the United Nations on the organization ’ s 75th anniversary .
In a statement published Friday lauding the agenda of the unelected global government , Francis bashed the “ perverse logic ” he claims links “ possession of weaponry ” to security .
“ We need to dismantle the perverse logic that links personal and national security to the possession of weaponry , ” the Bishop of Rome tweeted .
“ This logic serves only to increase the profits of the arms industry , while fostering a climate @ @ @ @ @ @ @ peoples.
” The Pontiff ’ s anti-gun remarks fall in line with the United Nations ’ agenda to eradicate personal firearm ownership throughout the globe , a goal symbolized by a “ Knotted Gun ” statue that sits in front of the UN ’ s New York City headquarters .
Elsewhere in his address , Francis called on nations to forgive the debt of smaller poorer nations amid the coronavirus pandemic .
“ Here I would renew my appeal that ‘ in light of the present circumstances… all nations be enabled to meet @ @ @ @ @ @ @ the reduction , if not the forgiveness , of the debt burdening the balance sheets of the poorest nations.
’ ” He also called on political leaders to ensure all have access to COVID-19 vaccines .
“ The pandemic has highlighted the urgent need to promote public health and to make every person ’ s right to basic medical care a reality .
For this reason , I renew my appeal to political leaders and the private sector to spare no effort to ensure access to Covid-19 vaccines and to the essential technologies @ @ @ @ @ @ @ If anyone should be given preference , let it be the poorest , the most vulnerable , those who so often experience discrimination because they have neither power nor economic resources.
” Ali Alexander joins The Alex Jones Show in-studio to break down the Pope ’ s plans to merge the church with the Communist Chinese government .

Pope Francis assailed the personal possession of firearms in a statement to the United Nations on the organization’s 75th anniversary.
In a statement published Friday lauding the agenda of the unelected global government, Francis bashed the “perverse logic” he claims links “possession of weaponry” to security.
We need to dismantle the perverse logic that links personal and national security to the possession of weaponry. This logic serves only to increase the profits of the arms industry, while fostering a climate of distrust and fear between persons and peoples. #UN75 @UN — Pope Francis (@Pontifex) September 25, 2020
“We need to dismantle the perverse logic that links personal and national security to the possession of weaponry,” the Bishop of Rome tweeted. “This logic serves only to increase the profits of the arms industry, while fostering a climate of distrust and fear between persons and peoples.”
The Pontiff’s anti-gun remarks fall in line with the United Nations’ agenda to eradicate personal firearm ownership throughout the globe, a goal symbolized by a “Knotted Gun” statue that sits in front of the UN’s New York City headquarters.
Elsewhere in his address, Francis called on nations to forgive the debt of smaller poorer nations amid the coronavirus pandemic.
“Here I would renew my appeal that ‘in light of the present circumstances… all nations be enabled to meet the greatest needs of the moment through the reduction, if not the forgiveness, of the debt burdening the balance sheets of the poorest nations.’”
He also called on political leaders to ensure all have access to COVID-19 vaccines.
“The pandemic has highlighted the urgent need to promote public health and to make every person’s right to basic medical care a reality. For this reason, I renew my appeal to political leaders and the private sector to spare no effort to ensure access to Covid-19 vaccines and to the essential technologies needed to care for the sick. If anyone should be given preference, let it be the poorest, the most vulnerable, those who so often experience discrimination because they have neither power nor economic resources.”
Ali Alexander joins The Alex Jones Show in-studio to break down the Pope’s plans to merge the church with the Communist Chinese government.


newswars--2020-09-25--US Signs Strategic Pact on AI With UK To Counter ‘Repressive’ China

The partnership between London and Washington will allegedly boost collaboration on the development and research of AI as well as “ explainability and fairness ” , a US official told Axios .
The Trump administration is set to announce it has signed a strategic partnership on artificial intelligence ( AI ) with the United Kingdom , Axios reported on Friday .
“ America and our allies must lead the world in shaping the development of cutting edge AI technologies and protecting against authoritarianism and repression .
We are proud to join our special partner and ally , the United Kingdom @ @ @ @ @ @ @ well-being of our citizens , in line with shared democratic values , ” Michael Kratsios , US chief technology officer said in a statement .
The news comes the US joined the Global Partnership on AI ( GPAI ) , citing fears that China could surpass the US in the tech race as well as a need to provide recommendations on AI technologies that would allegedly respect civil liberties .
According to a Bloomberg interview with Kratsios , the GPAI would be an ‘ important ’ check on Chinese approaches to AI .
@ @ @ @ @ @ @ $ 1.4tn pledge in May to boost key mainland technologies , including infrastructure , 5G , artificial intelligence , semiconductors and others as part of the nations Made In China 2025 plan and included in Beijing ’ s 5-year-plan set to be revealed next month .
US president Donald Trump launched his trade war against Beijing in March 2018 , sending relations with China to historic lows and targeting numerous mainland tech firms such as Huawei , ZTE , ByteDance , Tencent and others .
The measure have prompted Chinese officials and firms @ @ @ @ @ @ @ a bid to reduce dependence on US technologies , namely processors and operating systems , amid the ongoing trade war .
Alex Jones breaks down Amazon ’ s latest home security drone that flies inside your house .

The partnership between London and Washington will allegedly boost collaboration on the development and research of AI as well as “explainability and fairness”, a US official told Axios.
The Trump administration is set to announce it has signed a strategic partnership on artificial intelligence (AI) with the United Kingdom, Axios reported on Friday.
“America and our allies must lead the world in shaping the development of cutting edge AI technologies and protecting against authoritarianism and repression. We are proud to join our special partner and ally, the United Kingdom, to advance AI innovation for the well-being of our citizens, in line with shared democratic values,” Michael Kratsios, US chief technology officer said in a statement.
The news comes the US joined the Global Partnership on AI (GPAI), citing fears that China could surpass the US in the tech race as well as a need to provide recommendations on AI technologies that would allegedly respect civil liberties.
According to a Bloomberg interview with Kratsios, the GPAI would be an ‘important’ check on Chinese approaches to AI.
The news comes as Beijing launched a $1.4tn pledge in May to boost key mainland technologies, including infrastructure, 5G, artificial intelligence, semiconductors and others as part of the nations Made In China 2025 plan and included in Beijing’s 5-year-plan set to be revealed next month.
US president Donald Trump launched his trade war against Beijing in March 2018, sending relations with China to historic lows and targeting numerous mainland tech firms such as Huawei, ZTE, ByteDance, Tencent and others.
The measure have prompted Chinese officials and firms to boost investment in mainland firms in a bid to reduce dependence on US technologies, namely processors and operating systems, amid the ongoing trade war.
Alex Jones breaks down Amazon’s latest home security drone that flies inside your house.


newswars--2020-09-25--Watch: Driver Arrested After Being Chased Down & Attacked By BLM Mob

During Thursday night ’ s Breonna Taylor riots in Los Angeles , California , a car carefully driving through the crowd was surrounded , vandalized and chased down before the mob tried to physically pull the driver out of the vehicle .
Despite the car slowly making its way through the protest , BLM supporters immediately jumped on the hood and started banging on the sides , causing the driver to flee .
After driving away without injuring anyone , the mob chased down the vehicle on foot and in a pair of their own automobiles .
A truck full @ @ @ @ @ @ @ , jumped out and started to destroy the vehicle they chased down .
One man punched the driver through the window and attempted to pull him out of the car while others smashed the vehicle ’ s windows .
A man can be seen breaking the car ’ s rear window using his bicycle .
As the frightened driver was being assaulted and his car was being smashed , he backed into another vehicle that had been chasing him down and sped off .
At some point , the driver who was being @ @ @ @ @ @ @ pulled over by police and arrested .
See two different angles of the incident below : Another incident involving vehicles and protesters took place in Los Angeles on Thursday night when a truck ran into a demonstrator who was blocking the road .

During Thursday night’s Breonna Taylor riots in Los Angeles, California, a car carefully driving through the crowd was surrounded, vandalized and chased down before the mob tried to physically pull the driver out of the vehicle.
Despite the car slowly making its way through the protest, BLM supporters immediately jumped on the hood and started banging on the sides, causing the driver to flee.
After driving away without injuring anyone, the mob chased down the vehicle on foot and in a pair of their own automobiles.
A truck full of BLM/Antifa rioters cut the car off, jumped out and started to destroy the vehicle they chased down.
One man punched the driver through the window and attempted to pull him out of the car while others smashed the vehicle’s windows.
A man can be seen breaking the car’s rear window using his bicycle.
As the frightened driver was being assaulted and his car was being smashed, he backed into another vehicle that had been chasing him down and sped off.
At some point, the driver who was being hunted down by the violent group was pulled over by police and arrested.
See two different angles of the incident below:
White man detained for peacefully driving down a Hollywood road as violent BLM marauders smash his windows & try to rip him from his car. Reporter calls them “demonstrators.” Lol only thing demonstrated is who the real victim is in this reign of terror! pic.twitter.com/MtoJMUwwin — Jon Miller (@MillerStream) September 25, 2020
WATCH: A person driving a white Prius was chased down and by protesters after trying to drive through the crowd in #Hollywood. The group that chased the driver began hitting the car and possibly broke a window. @RoadSageLA was overhead in #Sky9 as it happened. #CBSLA pic.twitter.com/OYFMOezUpx — Mike Rogers (@MikeRogersTV) September 25, 2020
Another incident involving vehicles and protesters took place in Los Angeles on Thursday night when a truck ran into a demonstrator who was blocking the road.


newswars--2020-09-25--Pray For Ron Paul! Libertarian Icon Appears To Suffer Medical Episode During Live Interview

Former Texas Congressman Ron Paul appeared to suffer a medical episode on Friday while his Ron Paul Liberty Report podcast @ @ @ @ @ : Some viewers may find the following video disturbing .
Dr. Paul has been a @ @ @ @ @ Show several times over the past two decades and is one of the most prolific @ @ @ @ @ movement .
His status is currently unknown , but this article will be updated when @ @ @ @ @ of Ron Paul is made public .
Rand Paul , Ron ’ s son , @ @ @ @ @ Senate representing the state of Kentucky .

Former Texas Congressman Ron Paul appeared to suffer a medical episode on Friday while his Ron Paul Liberty Report podcast was live on air.
Warning : Some viewers may find the following video disturbing.
Dr. Paul has been a guest on The Alex Jones Show several times over the past two decades and is one of the most prolific voices of the American patriot movement.
His status is currently unknown, but this article will be updated when more information on the well-being of Ron Paul is made public.
Rand Paul, Ron’s son, is currently serving in the Senate representing the state of Kentucky.


newswars--2020-09-25--Lizzo Claims ‘Body Positivity’ Movement is Being Taken Over by White Girls Who Aren’t Fat Enough

Pop star Lizzo has complained that the ‘ body positivity ’ movement is being hijacked by white girls who aren ’ t large enough .
In an interview with Vogue , the singer said that the ‘ fat acceptance ’ crusade has become too “ mainstream ” and too white .
“ It ’ s commercialized , ” she claimed .
“ Now , you look at the hashtag ‘ body positive ’ and you see smaller-framed girls , curvier girls .
Lotta white girls .
And I feel no ways about that , because inclusivity is what my message @ @ @ @ @ @ @ inclusivity , ” Lizzo went on to whine about body positivity being too inclusive .
“ Girls with back fat , girls with bellies that hang , girls with thighs that aren ’ t separated , that overlap , ” she said .
“ Girls with stretch marks .
You know , girls who are in the 18-plus club .
They need to be benefiting from… the mainstream effect of body positivity now .
But with everything that goes mainstream , it gets changed .
It gets – you know , it gets @ @ @ @ @ @ @ reality , the ‘ body positivity ’ movement is nothing more than a refuge for lazy , fat people who eat too much .
By forcing society to accept their bad lifestyle choices as some kind of civil rights cause , they get out of having to take any responsibility for their actions whatsoever .
It would be as ludicrous as promoting a ‘ smoker positivity movement ’ , where the dangers of smoking are completely ignored and superseded by the smoker ’ s need not to feel judged .
Obesity is directly @ @ @ @ @ @ @ of horrendous diseases .
The notion that it should be promoted as normal for young people is totally absurd , but par for the course given the demented clown world we now live in .
In the age of mass Silicon Valley censorship It is crucial that we stay in touch .
I need you to sign up for my free newsletter here .
Also , I urgently need your financial support here .

Pop star Lizzo has complained that the ‘body positivity’ movement is being hijacked by white girls who aren’t large enough.
Yes, really.
In an interview with Vogue, the singer said that the ‘fat acceptance’ crusade has become too “mainstream” and too white.
“It’s commercialized,” she claimed. “Now, you look at the hashtag ‘body positive’ and you see smaller-framed girls, curvier girls. Lotta white girls. And I feel no ways about that, because inclusivity is what my message is always about.”
Despite preaching “inclusivity,” Lizzo went on to whine about body positivity being too inclusive.
“Girls with back fat, girls with bellies that hang, girls with thighs that aren’t separated, that overlap,” she said. “Girls with stretch marks. You know, girls who are in the 18-plus club. They need to be benefiting from… the mainstream effect of body positivity now. But with everything that goes mainstream, it gets changed. It gets – you know, it gets made acceptable.”
Of course, in reality, the ‘body positivity’ movement is nothing more than a refuge for lazy, fat people who eat too much.
By forcing society to accept their bad lifestyle choices as some kind of civil rights cause, they get out of having to take any responsibility for their actions whatsoever.
It would be as ludicrous as promoting a ‘smoker positivity movement’, where the dangers of smoking are completely ignored and superseded by the smoker’s need not to feel judged.
Obesity is directly linked to early death and all manner of horrendous diseases. The notion that it should be promoted as normal for young people is totally absurd, but par for the course given the demented clown world we now live in.
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newswars--2020-09-25--In August, Money Supply Growth Hit a Record High for the Fifth Month in a Row

In August , for the fifth month in a row , money supply growth surged to an all-time high , following new all-time highs in April , May , June , and July that came in the wake of unprecedented quantitative easing , central bank asset purchases , and various stimulus packages .
The growth rate has never been higher , with the 1970s being the only period that comes close .
It was expected that money supply growth would surge in recent months .
This usually happens in the wake of the early months of a recession or financial @ @ @ @ @ @ @ the United States is several months into an extended economic crisis , with around 1 million new jobless claims each week from March until mid-September , with more than 12 million unemployed workers currently collecting benefits .
Economic growth plummeted in the second quarter as GDP growth fell more than 9 percent .
At a September press conference , Federal Reserve chairman Jerome Powell predicted “ millions of people…are going to struggle to find work [ for ] couple of years at least.
” The central bank continues to engage in a wide @ @ @ @ @ @ @ ” the economy and provide income to unemployed workers and to provide liquidity to financial institutions .
Moreover , as government revenues have fallen considerably , Congress has turned to unprecedented amounts of borrowing .
But in order to keep interest rates low , the Fed has been buying up trillions of dollars in assets—including government debt .
This has fueled new money creation .
During August 2020 , year-over-year ( YOY ) growth in the money supply was at 37.56 percent .
That ’ s up from July ’ s rate of @ @ @ @ @ @ @ 2019 ’ s rate of 1.86 percent .
Historically this is a very large surge in growth , both month over month and year over year .
It is also quite a reversal from the trend that only just ended in August of last year , when growth rates were nearly bottoming out around 2 percent .
In August 2019 , the growth rate hit a 120-month low , falling to the lowest growth rates we ’ d seen since 2007 .
The money supply metric used here—the “ true ” or Rothbard-Salerno @ @ @ @ @ @ @ the metric developed by Murray Rothbard and Joseph Salerno , and is designed to provide a better measure of money supply fluctuations than M2 .
The Mises Institute now offers regular updates on this metric and its growth .
This measure of the money supply differs from M2 in that it includes Treasury deposits at the Fed ( and excludes short-time deposits , traveler ’ s checks , and retail money funds ) .
The M2 growth rate retreated slightly from historic highs in August , growing 23.23 percent compared to July ’ @ @ @ @ @ @ @ M2 grew 5.18 percent during August of last year .
The M2 growth rate had fallen considerably from late 2016 to late 2018 but has been growing again in recent months .
As of March , it is following a trend similar to that of TMS .
Money supply growth can often be a helpful measure of economic activity .
During periods of economic boom , money supply tends to grow quickly as banks make more loans .
Recessions , on the other hand , tend to be preceded by periods of slowdown @ @ @ @ @ @ @ However , money supply growth tends to grow out of its low-growth trough well before the onset of recession .
As recession nears , the TMS growth rate climbs and becomes larger than the M2 growth rate .
This occurred in the early months of the 2002 and the 2009 crises .
February 2020 was the first month since late 2008 that the TMS growth rate climbed higher than the M2 growth rate .
The TMS growth rate again exceeded M2 in March , April , and June 2020 .
As the year @ @ @ @ @ @ @ decline in money supply growth has again preceded a recession , and a severe one at that .
While a single quarter of decline would not meet the definition of “ recession ” now commonly used by economists , the US will have to stage an enormous economic comeback during the third quarter to avoid what most everyone will admit is a serious recession .
Although some observers will likely claim that the current economic crisis is a result solely of the covid-19 panic and resulting government-forced shutdowns , several indicators do suggest @ @ @ @ @ @ @ recession .
The preceding decline in TMS is one of these indicators , as is the late 2019 liquidity crisis in the repo markets .
The Fed ’ s moves to drop interest rates and to once again grow its balance sheet speak to the weakness of the economy leading up to April 2020 .
After initial balance sheet growth in late 2019 , total Fed assets surged to nearly $ 7.2 trillion in June and have rarely dipped below the $ 7 trillion mark since then .
These new asset purchases have @ @ @ @ @ @ @ propelling the Fed balance sheet far beyond anything seen during the Great Recession ’ s stimulus packages .
The Fed ’ s assets are now up more than 600 percent from the period immediately preceding the 2008 financial crisis .
Total assets had declined from the early-June peak during late June and much of July .
Total assets have grown again , however , in recent weeks .
While Fed asset purchases are not solely responsible for the surge in new money creation , they are certainly a sizable factor .
Bank loan @ @ @ @ @ @ @ driving new money creation .
Below is the dollar volume for M2 and TMS :

In August, for the fifth month in a row, money supply growth surged to an all-time high, following new all-time highs in April, May, June, and July that came in the wake of unprecedented quantitative easing, central bank asset purchases, and various stimulus packages.
The growth rate has never been higher, with the 1970s being the only period that comes close. It was expected that money supply growth would surge in recent months. This usually happens in the wake of the early months of a recession or financial crisis. But it appears that now the United States is several months into an extended economic crisis, with around 1 million new jobless claims each week from March until mid-September, with more than 12 million unemployed workers currently collecting benefits. Economic growth plummeted in the second quarter as GDP growth fell more than 9 percent. At a September press conference, Federal Reserve chairman Jerome Powell predicted “millions of people…are going to struggle to find work [for] couple of years at least.”
The central bank continues to engage in a wide variety of unprecedented efforts to “stimulate” the economy and provide income to unemployed workers and to provide liquidity to financial institutions. Moreover, as government revenues have fallen considerably, Congress has turned to unprecedented amounts of borrowing. But in order to keep interest rates low, the Fed has been buying up trillions of dollars in assets—including government debt. This has fueled new money creation.
During August 2020, year-over-year (YOY) growth in the money supply was at 37.56 percent. That’s up from July’s rate of 36.92 percent, and up from August 2019’s rate of 1.86 percent. Historically this is a very large surge in growth, both month over month and year over year. It is also quite a reversal from the trend that only just ended in August of last year, when growth rates were nearly bottoming out around 2 percent. In August 2019, the growth rate hit a 120-month low, falling to the lowest growth rates we’d seen since 2007.
The money supply metric used here—the “true” or Rothbard-Salerno money supply measure (TMS)—is the metric developed by Murray Rothbard and Joseph Salerno, and is designed to provide a better measure of money supply fluctuations than M2. The Mises Institute now offers regular updates on this metric and its growth. This measure of the money supply differs from M2 in that it includes Treasury deposits at the Fed (and excludes short-time deposits, traveler’s checks, and retail money funds).
The M2 growth rate retreated slightly from historic highs in August, growing 23.23 percent compared to July’s growth rate of 23.29 percent. M2 grew 5.18 percent during August of last year. The M2 growth rate had fallen considerably from late 2016 to late 2018 but has been growing again in recent months. As of March, it is following a trend similar to that of TMS.
Money supply growth can often be a helpful measure of economic activity. During periods of economic boom, money supply tends to grow quickly as banks make more loans. Recessions, on the other hand, tend to be preceded by periods of slowdown in rates of money supply growth. However, money supply growth tends to grow out of its low-growth trough well before the onset of recession. As recession nears, the TMS growth rate climbs and becomes larger than the M2 growth rate. This occurred in the early months of the 2002 and the 2009 crises. February 2020 was the first month since late 2008 that the TMS growth rate climbed higher than the M2 growth rate. The TMS growth rate again exceeded M2 in March, April, and June 2020. As the year progresses, it does appear that the decline in money supply growth has again preceded a recession, and a severe one at that. While a single quarter of decline would not meet the definition of “recession” now commonly used by economists, the US will have to stage an enormous economic comeback during the third quarter to avoid what most everyone will admit is a serious recession.
Although some observers will likely claim that the current economic crisis is a result solely of the covid-19 panic and resulting government-forced shutdowns, several indicators do suggest that the economy was primed for a recession. The preceding decline in TMS is one of these indicators, as is the late 2019 liquidity crisis in the repo markets. The Fed’s moves to drop interest rates and to once again grow its balance sheet speak to the weakness of the economy leading up to April 2020.
After initial balance sheet growth in late 2019, total Fed assets surged to nearly $7.2 trillion in June and have rarely dipped below the $7 trillion mark since then. These new asset purchases have set a new all-time high and are propelling the Fed balance sheet far beyond anything seen during the Great Recession’s stimulus packages. The Fed’s assets are now up more than 600 percent from the period immediately preceding the 2008 financial crisis. Total assets had declined from the early-June peak during late June and much of July. Total assets have grown again, however, in recent weeks.
While Fed asset purchases are not solely responsible for the surge in new money creation, they are certainly a sizable factor. Bank loan activity has surged as well, also driving new money creation.
Below is the dollar volume for M2 and TMS:


newswars--2020-09-25--Compulsory vs. Free Education

Compulsory vs. Free Education

The Reverend George Harris described the effects of compulsory education in imposing uniformity and enforced equality ( soon after the establishment of compulsion ) : Education is already so generally provided in America and other countries [ 1897 ] , that , without forecasting imaginary conditions , there is no difficulty in seeing how much equality is given by that opportunity….The same amount of time is given to all ; the same courses are prescribed for all ; the same teachers are appointed to all .
The opportunity is not merely open ; it is forced upon all .
Even @ @ @ @ @ @ @ to imagine any arrangement for providing the education which all are supposed to need more nearly equal than the existing system of public schools .
Even Mr. Bellamy [ a prominent totalitarian socialist of the day ] finds schools in the year 2000 AD modeled after those of the nineteenth century .
All things are changed except the schools….Behind fifty desks exactly alike fifty boys and girls are seated to recite a lesson prescribed to all….But the algebra is not an opportunity for the boy who has no turn for mathematics….Indeed , the @ @ @ @ @ @ @ more unequal it is really .
When the same instruction for the same number of hours a day by the same teachers is provided for fifty boys and girls , the majority have almost no opportunity at all .
The bright scholars are held back…the dull scholars are unable to keep up…average scholars are discouraged because the brighter pupils accomplish their tasks so easily .
In the 1940s , the English writer and critic Herbert Read emphasized the diversity of man by pointing out the “ psychological ” objection to a compulsory “ @ @ @ @ @ @ @ is naturally differentiated into many types , and to press all these types into the same mold must inevitably lead to distortions and repressions .
Schools should be of many kinds , following different methods and catering for different dispositions .
It might be argued that even a totalitarian state must recognize this principle but the truth is that differentiation is an organic process , the spontaneous and roving associations of individuals for particular purposes .
To divide and segregate is not the same as to join and aggregate .
It is just @ @ @ @ @ @ @ of education as the natural process we have envisaged , falls to pieces if we attempt to make that structure…artificial .
The great philosopher Herbert Spencer pointed out the despotism inherent in compulsory education : For what is meant by saying that a government ought to educate the people ?
Why should they be educated ?
What is the education for ?
Clearly , to fit the people for social life—to make them good citizens .
And who is to say what are good citizens ?
The government : there is no other @ @ @ @ @ @ @ how these good citizens may be made ?
The government : there is no other judge .
Hence the proposition is convertible into this—a government ought to mold children into good citizens….It must first form for itself a definite conception of a pattern citizen ; and , having done this , must elaborate such system of discipline as seems best calculated to produce citizens after that pattern .
This system of discipline it is bound to enforce to the uttermost .
For if it does otherwise , it allows men to become different @ @ @ @ @ @ @ become , and therefore fails in that duty it is charged to fulfill .
Mrs. Isabel Paterson brilliantly sums up the tyranny of compulsory state education , and the superiority of free choice of private education : political control is…by its nature , bound to legislate against statements of both facts and opinion , in prescribing a school curriculum , in the long run .
The most exact and demonstrable scientific knowledge will certainly be objectionable to political authority at some point , because it will expose the folly of such authority , @ @ @ @ @ @ @ be permitted to show the nonsensical absurdity of “ dialectical materialism ” in Russia , by logical examination…and if the political authority is deemed competent to control education , that must be the outcome in any country .
Educational texts are necessarily selective , in subject matter , language , and point of view .
Where teaching is conducted by private schools , there will be a considerable variation in different schools ; the parents must judge what they want their children taught , by the curriculum offered .
Then each must strive @ @ @ @ @ @ @ inducement to teach the “ supremacy of the state ” as a compulsory philosophy .
But every politically controlled educational system will inculcate the doctrine of state supremacy sooner or later , whether as the divine right of kings , or the “ will of the people ” in “ democracy.
” Once that doctrine has been accepted , it becomes an almost superhuman task to break the stranglehold of the political power over the life of the citizen .
It has had his body , property , and mind in its clutches @ @ @ @ @ @ @ release its prey .
A tax-supported , compulsory educational system is the complete model of the totalitarian state .
Here we must add that , in the current system , the State has found a way in the United States , to induce the private schools to teach State supremacy without outlawing private schools , as in some other countries .
By enforcing certification for minimum standards , the State effectively , though subtly , dominates the private schools and makes them , in effect , extensions of the public school system .
@ @ @ @ @ @ @ standards will free the private schools and permit them to function in independence .
Mrs. Paterson deals succinctly with the problem of compulsory education and literacy : But would not some children remain illiterate ?
They might , as some do now , and as they did in the past .
The United States has had one president who did not learn to read and write until after he was not only a grown man , but married and earning his own living .
The truth is that in a free country anyone @ @ @ @ @ @ @ left so ; although simple literacy is not a sufficient education in itself , but the elementary key to an indispensable part of education in civilization .
But that further education in civilization can not be obtained at all under full political control of the schools .
It is possible only to a certain frame of mind in which knowledge is pursued voluntarily .
And Mrs. Paterson answers teachers and educators who would tend to reply in epithets to her criticism : Do you think nobody would willingly entrust his children to you @ @ @ @ @ @ @ Why do you have to extort your fees and collect your pupils by compulsion ?
One of the best ways of regarding the problem of compulsory education is to think of the almost exact analogy in the area of that other great educational medium—the newspaper .
What would we think of a proposal for the government , Federal or State , to use the taxpayers ’ money to set up a nationwide chain of public newspapers , and compel all people , or all children , to read them ?
What would we @ @ @ @ @ @ @ outlawing all other newspapers , or indeed outlawing all newspapers that do not come up to the “ standards ” of what a government commission thinks children ought to read ?
Such a proposal would be generally regarded with horror in America , and yet this is exactly the sort of regime that the government has established in the sphere of scholastic instruction .
Compulsory public presses would be considered an invasion of the basic freedom of the press ; yet is not scholastic freedom at least as important as press freedom ?
@ @ @ @ @ @ @ public information and education , for free inquiry and the search for truth ?
It is clear that the suppression of free instruction should be regarded with even greater horror than suppression of free press , since here the unformed minds of children are involved .

The Reverend George Harris described the effects of compulsory education in imposing uniformity and enforced equality (soon after the establishment of compulsion):
Education is already so generally provided in America and other countries [1897], that, without forecasting imaginary conditions, there is no difficulty in seeing how much equality is given by that opportunity….The same amount of time is given to all; the same courses are prescribed for all; the same teachers are appointed to all. The opportunity is not merely open; it is forced upon all. Even under a socialistic program it is difficult to imagine any arrangement for providing the education which all are supposed to need more nearly equal than the existing system of public schools. Even Mr. Bellamy [a prominent totalitarian socialist of the day] finds schools in the year 2000 AD modeled after those of the nineteenth century. All things are changed except the schools….Behind fifty desks exactly alike fifty boys and girls are seated to recite a lesson prescribed to all….But the algebra is not an opportunity for the boy who has no turn for mathematics….Indeed, the more nearly equal the opportunity outwardly the more unequal it is really. When the same instruction for the same number of hours a day by the same teachers is provided for fifty boys and girls, the majority have almost no opportunity at all. The bright scholars are held back…the dull scholars are unable to keep up…average scholars are discouraged because the brighter pupils accomplish their tasks so easily.
In the 1940s, the English writer and critic Herbert Read emphasized the diversity of man by pointing out the “psychological” objection to a compulsory “national system of education”:
Mankind is naturally differentiated into many types, and to press all these types into the same mold must inevitably lead to distortions and repressions. Schools should be of many kinds, following different methods and catering for different dispositions. It might be argued that even a totalitarian state must recognize this principle but the truth is that differentiation is an organic process, the spontaneous and roving associations of individuals for particular purposes. To divide and segregate is not the same as to join and aggregate. It is just the opposite process. The whole structure of education as the natural process we have envisaged, falls to pieces if we attempt to make that structure…artificial.
The great philosopher Herbert Spencer pointed out the despotism inherent in compulsory education:
For what is meant by saying that a government ought to educate the people? Why should they be educated? What is the education for? Clearly, to fit the people for social life—to make them good citizens. And who is to say what are good citizens? The government: there is no other judge. And who is to say how these good citizens may be made? The government: there is no other judge. Hence the proposition is convertible into this—a government ought to mold children into good citizens….It must first form for itself a definite conception of a pattern citizen; and, having done this, must elaborate such system of discipline as seems best calculated to produce citizens after that pattern. This system of discipline it is bound to enforce to the uttermost. For if it does otherwise, it allows men to become different from what in its judgment they should become, and therefore fails in that duty it is charged to fulfill.
Mrs. Isabel Paterson brilliantly sums up the tyranny of compulsory state education, and the superiority of free choice of private education:
political control is…by its nature, bound to legislate against statements of both facts and opinion, in prescribing a school curriculum, in the long run. The most exact and demonstrable scientific knowledge will certainly be objectionable to political authority at some point, because it will expose the folly of such authority, and its vicious effects. Nobody would be permitted to show the nonsensical absurdity of “dialectical materialism” in Russia, by logical examination…and if the political authority is deemed competent to control education, that must be the outcome in any country.
Educational texts are necessarily selective, in subject matter, language, and point of view. Where teaching is conducted by private schools, there will be a considerable variation in different schools; the parents must judge what they want their children taught, by the curriculum offered. Then each must strive for objective truth….Nowhere will there be any inducement to teach the “supremacy of the state” as a compulsory philosophy. But every politically controlled educational system will inculcate the doctrine of state supremacy sooner or later, whether as the divine right of kings, or the “will of the people” in “democracy.” Once that doctrine has been accepted, it becomes an almost superhuman task to break the stranglehold of the political power over the life of the citizen. It has had his body, property, and mind in its clutches from infancy. An octopus would sooner release its prey.
A tax-supported, compulsory educational system is the complete model of the totalitarian state.
Here we must add that, in the current system, the State has found a way in the United States, to induce the private schools to teach State supremacy without outlawing private schools, as in some other countries.
By enforcing certification for minimum standards, the State effectively, though subtly, dominates the private schools and makes them, in effect, extensions of the public school system. Only removal of compulsory schooling and enforced standards will free the private schools and permit them to function in independence.
Mrs. Paterson deals succinctly with the problem of compulsory education and literacy:
But would not some children remain illiterate? They might, as some do now, and as they did in the past. The United States has had one president who did not learn to read and write until after he was not only a grown man, but married and earning his own living. The truth is that in a free country anyone who remains illiterate might as well be left so; although simple literacy is not a sufficient education in itself, but the elementary key to an indispensable part of education in civilization. But that further education in civilization cannot be obtained at all under full political control of the schools. It is possible only to a certain frame of mind in which knowledge is pursued voluntarily.
And Mrs. Paterson answers teachers and educators who would tend to reply in epithets to her criticism:
Do you think nobody would willingly entrust his children to you to pay you for teaching them? Why do you have to extort your fees and collect your pupils by compulsion?
One of the best ways of regarding the problem of compulsory education is to think of the almost exact analogy in the area of that other great educational medium—the newspaper. What would we think of a proposal for the government, Federal or State, to use the taxpayers’ money to set up a nationwide chain of public newspapers, and compel all people, or all children, to read them? What would we think furthermore of the government’s outlawing all other newspapers, or indeed outlawing all newspapers that do not come up to the “standards” of what a government commission thinks children ought to read? Such a proposal would be generally regarded with horror in America, and yet this is exactly the sort of regime that the government has established in the sphere of scholastic instruction.
Compulsory public presses would be considered an invasion of the basic freedom of the press; yet is not scholastic freedom at least as important as press freedom? Aren’t both vital media for public information and education, for free inquiry and the search for truth? It is clear that the suppression of free instruction should be regarded with even greater horror than suppression of free press, since here the unformed minds of children are involved.


newswars--2020-09-25--Rare ‘Earthgrazer’ Meteor Skims Dangerously Close to Earth

On 22 September a meteor was spotted flying over Germany and the Netherlands , amazingly dipping to an altitude as low as 91 kilometers and offering viewers a stunning view .
Remarkable footage has been shared online of a rare “ earthgrazer ” meteor skimming close to the surface of our atmosphere , below orbiting weather and TV satellites , only to bounce back into space rather than following the fate of most meteors which is to burn up in the atmosphere in a blaze of “ shooting stars ” .
The video was shared by Global Meteor Network ( @ @ @ @ @ @ @ Space Agency ( ESA ) announcement on Thursday .
The “ earthgrazer ” was spotted over northern Germany and the Netherlands on 22 September at an altitude of 91km .
The incident when the meteor made its lucky escape from imminent disintegration was captured by cameras in the Global Meteor Network , which covers our planet with meteor-monitoring devices and informs the public via real-time alerts of impending space rock activity .
“ The network is basically a decentralized scientific instrument , made up of amateur astronomers and citizen scientists around the S @ @ @ @ @ @ @ systems , ” said GMN founder Denis Vida .
Meteors like the one in the footage , dubbed “ earthgrazers ” , are rare , occurring only a few times a year .
Typically , thousands of meteors burn up when approaching Earth , leaving a few surviving fragments to plunge to the surface of our planet .
Alex Jones breaks down Amazon ’ s latest home security drone that flies inside your house .

On 22 September a meteor was spotted flying over Germany and the Netherlands, amazingly dipping to an altitude as low as 91 kilometers and offering viewers a stunning view.
Remarkable footage has been shared online of a rare “earthgrazer” meteor skimming close to the surface of our atmosphere, below orbiting weather and TV satellites, only to bounce back into space rather than following the fate of most meteors which is to burn up in the atmosphere in a blaze of “shooting stars”.
The video was shared by Global Meteor Network (GMN), according to the European Space Agency (ESA) announcement on Thursday.
The “earthgrazer” was spotted over northern Germany and the Netherlands on 22 September at an altitude of 91km.
(2/2) It was on a Jupiter-family orbit (a = 2.56 AU, q = 0.29 AU, e = 0.88, i = 2.93, w = 239.67, O = 359.31). Parent body seach found no conclusive hits. pic.twitter.com/zk1pe8wvNr — Denis Vida (@meteordoc) September 22, 2020
The incident when the meteor made its lucky escape from imminent disintegration was captured by cameras in the Global Meteor Network, which covers our planet with meteor-monitoring devices and informs the public via real-time alerts of impending space rock activity.
“The network is basically a decentralized scientific instrument, made up of amateur astronomers and citizen scientists around the S]ddddddddddd each with their own camera systems,” said GMN founder Denis Vida.
This lucky visitor, however, didn’t get low enough to completely burn up and managed to escape again, only grazing the edges of our planet’s protective gassy shield#PlanetaryDefence🌍☄ 📷#globalmeteornetwork pic.twitter.com/jool8xmLSa — ESA Operations (@esaoperations) September 24, 2020
Meteors like the one in the footage, dubbed “earthgrazers”, are rare, occurring only a few times a year. Typically, thousands of meteors burn up when approaching Earth, leaving a few surviving fragments to plunge to the surface of our planet.
Alex Jones breaks down Amazon’s latest home security drone that flies inside your house.


newswars--2020-09-25--Abenomics: Big Debts with Nothing to Show for It

Abenomics is an economic philosophy named after Prime Minister Abe .
It is a multipronged strategy that involves increasing Japan ’ s money supply , enhancing government spending , and reforming the world ’ s third-largest economy to make it more competitive .
He launched Abenomics once he started his second term in December 2012 , announcing that his government would “ implement bold monetary policy , flexible fiscal policy and a growth strategy that encourages private investment , and with these three pillars , achieve results.
” In other words , Abe promised to reverse the country ’ s @ @ @ @ @ @ @ did he achieve after eight years as head of state ?
In the aftermath of the Lost Decade , Tokyo never fully recovered from this abysmal period .
Abe enjoyed electoral success because he championed economic policies that would lead to prosperity and growth .
However , Abe ’ s government fell short of the $ 5.6 trillion growth target laid out by the prime minister .
The Nikkei 225 stock market index has done incredibly well under Abe , as it has more than doubled since 2012 .
This was achieved because @ @ @ @ @ @ @ Bank of Japan ’ s ( BoJ ) large-scale monetary easing putsch that involved subzero interest rates , enormous asset purchases , and yield curve control .
This triggered massive asset inflation and a weakened yen , which boosted its exports and allowed Japanese firms to expand their footprints in foreign markets .
But what about common folk ?
Wage growth has stagnated for the last thirty years .
Unlike its Organisation for Economic Co-operation and Development ( OECD ) partners , average real wages have flatlined since 1991 , and it continued @ @ @ @ @ @ @ higher salaries .
Although deflation is often associated with the Japanese economy , consumer and producer prices have gone up since 2014 .
When you factor in an unwelcomed sales tax hike and a depreciated yen , the cost of living became a tad too high .
The most significant burden for the Japanese population will inevitably be government debt .
Tokyo generated international headlines when it reported a 1 quadrillion yen public debt .
There is no argument that the national debt and the budget deficit will explode following the covid-19 pandemic @ @ @ @ @ @ @ prime minister did introduce a plan to organize its financial mess .
But once the coronavirus gripped the Japanese economy , the government abandoned fiscal responsibility and instead implemented a series of exorbitant stimulus and relief packages .
Right now , spending is about survival .
In the future , the astronomical debt levels will hinder expansionary fiscal efforts , which would impact the state-dependent economy .
In the end , somebody is going to have to pay the bill .
Seniors over sixty-five account for a third of the population , young @ @ @ @ @ @ @ the current system is bloated .
These are indicators that a lot of change is needed , but it is unclear if the Diet has an appetite to modify public policy .
Abenomics Is Here to Stay Abe said that he would officially resign when the Liberal Democrat Party chooses his successor .
No matter who is selected to lead Abe until the next election , Abenomics is here to stay , even if the opposition forms a government .
Tokyo would have no other choice but to embark upon a perpetual campaign @ @ @ @ @ @ @ postcoronavirus economy , particularly if a second wave strikes .
The next leader might tinker around with altered approaches , but it will be more of the same .
Japan is in a recession , debt to gross domestic product is more than 200 percent , and the many purchasing managers ’ index ( PMI ) readings suggest business activity is still contracting .
Japan would need Abenomics right now , even if this neo-Keynesian approach to central planning failed during the boom phase of the business cycle .
Japan will never kick @ @ @ @ @ @ @ is par for the course of the rest of the planet that has adopted ultraloose fiscal and monetary policy .

Reaganomics, Clintonomics, Obamanomics, and Trumponomics.
Abenomics is an economic philosophy named after Prime Minister Abe. It is a multipronged strategy that involves increasing Japan’s money supply, enhancing government spending, and reforming the world’s third-largest economy to make it more competitive. He launched Abenomics once he started his second term in December 2012, announcing that his government would “implement bold monetary policy, flexible fiscal policy and a growth strategy that encourages private investment, and with these three pillars, achieve results.” In other words, Abe promised to reverse the country’s stagnation and supercharge Japan. But what did he achieve after eight years as head of state?
The Fruits of Abenomics
In the aftermath of the Lost Decade, Tokyo never fully recovered from this abysmal period. Abe enjoyed electoral success because he championed economic policies that would lead to prosperity and growth. However, Abe’s government fell short of the $5.6 trillion growth target laid out by the prime minister.
The Nikkei 225 stock market index has done incredibly well under Abe, as it has more than doubled since 2012. This was achieved because a critical component of Abenomics was the Bank of Japan’s (BoJ) large-scale monetary easing putsch that involved subzero interest rates, enormous asset purchases, and yield curve control. This triggered massive asset inflation and a weakened yen, which boosted its exports and allowed Japanese firms to expand their footprints in foreign markets.
But what about common folk? Wage growth has stagnated for the last thirty years. Unlike its Organisation for Economic Co-operation and Development (OECD) partners, average real wages have flatlined since 1991, and it continued under Abe, despite his cabinet mandating higher salaries. Although deflation is often associated with the Japanese economy, consumer and producer prices have gone up since 2014. When you factor in an unwelcomed sales tax hike and a depreciated yen, the cost of living became a tad too high.
The most significant burden for the Japanese population will inevitably be government debt. Tokyo generated international headlines when it reported a 1 quadrillion yen public debt. There is no argument that the national debt and the budget deficit will explode following the covid-19 pandemic. Before the virus outbreak, the prime minister did introduce a plan to organize its financial mess. But once the coronavirus gripped the Japanese economy, the government abandoned fiscal responsibility and instead implemented a series of exorbitant stimulus and relief packages. Right now, spending is about survival. In the future, the astronomical debt levels will hinder expansionary fiscal efforts, which would impact the state-dependent economy.
In the end, somebody is going to have to pay the bill. Seniors over sixty-five account for a third of the population, young people are not having children, and the current system is bloated. These are indicators that a lot of change is needed, but it is unclear if the Diet has an appetite to modify public policy.
Abenomics Is Here to Stay
Abe said that he would officially resign when the Liberal Democrat Party chooses his successor. No matter who is selected to lead Abe until the next election, Abenomics is here to stay, even if the opposition forms a government. Tokyo would have no other choice but to embark upon a perpetual campaign of printing and spending money in the postcoronavirus economy, particularly if a second wave strikes. The next leader might tinker around with altered approaches, but it will be more of the same.
Japan is in a recession, debt to gross domestic product is more than 200 percent, and the many purchasing managers’ index (PMI) readings suggest business activity is still contracting. Japan would need Abenomics right now, even if this neo-Keynesian approach to central planning failed during the boom phase of the business cycle. Japan will never kick its easy money addiction, but that is par for the course of the rest of the planet that has adopted ultraloose fiscal and monetary policy.


newswars--2020-09-25--Should Investors Focus on Risk Rather Than Profit?

According to the modern portfolio theory ( MPT ) , financial asset prices always fully reflect all available and relevant information , and any adjustment to new information is virtually instantaneous .
In this way of thinking , asset prices respond only to the unexpected part of any information , since the expected part is already embedded in prices .
For instance , if the central bank raises interest rates by 0.5 percent , and if market participants anticipated this action , asset prices will reflect this expected increase prior to the central bank raising interest rates .
Note that @ @ @ @ @ @ @ rate by 0.5 percent this increase will have no effect on asset prices , since it is already embedded in asset prices .
Should , however , the central bank raise interest rates by 1 percent , rather than the 0.5 percent expected by market participants , then the prices of financial assets will react to this additional increase .
According to the MPT , the individual investor can not outsmart the market by trading based on the available information since the available information is already contained in asset prices .
This means @ @ @ @ @ @ @ information from historical data , such as fundamental analysis or technical analysis , are of little help .
For whatever an analyst uncovers in the data is already known to the market and hence will not assist in “ making money.
” By this logic , stock market prices move in response to new , unexpected information .
Since by definition the unexpected can not be known , this implies that an individual ’ s chances of anticipating the general direction of the market are as good as anyone else ’ s chances @ @ @ @ @ @ @ future direction of the stock market can not be known , then the only way of earning above average returns is to assume greater risk .
A security whose returns are not expected to deviate significantly from its historical average is termed as a low risk .
A security whose returns are volatile from year to year is regarded as risky .
The MPT assumes that investors are risk averse and they want high guaranteed returns .
To comply with this assumption the MPT instructs investors on how to combine stocks in their @ @ @ @ @ @ @ risk consistent with the return they seek .
MPT shows that if an investor wants to reduce investment risk , he should practice diversification .
According to the MPT , a portfolio of volatile stocks can be combined together and this in turn will lead to a reduction of the overall risk of the portfolio .
The guiding principle for combining stocks is that each stock represents activities that are affected by given factors differently .
Once combined , these differences will cancel each other out , thereby reducing the total risk , @ @ @ @ @ @ @ following simple example : Let us assume that , on average , half of the time the weather is cold and half of the time it is warm .
According to the table , investment in activity A will yield a 20 percent return in cold weather and in warm weather will produce a loss of 10 percent .
On average , the return by investing in activity A will be 5 percent .
The same outcome will be obtained with investment in activity B .
The MPT then suggests that if an @ @ @ @ @ @ @ activity A and one dollar in activity B then he will be guaranteed a 5 percent return regardless of weather conditions .
In warm weather , one dollar invested in activity B will produce a 20 percent return , whilst one dollar invested in activity A will produce a 10 percent loss .
Investors ’ total return on two dollars invested in A and B will be 5 percent .
Exactly the same result will be obtained for cold weather conditions .
This example illustrates that through the magic of diversification , regardless @ @ @ @ @ @ @ risk-free 5 percent return on investment .
This example shows that as long as activities are affected differently by given factors there is a place for diversification , which will eliminate risk .
According to the MPT risk can be broken into two parts .
The first part is associated with the tendency of returns on a stock to move in the same direction as the general market .
The other part of the risk results from factors peculiar to a particular company .
The first part of the risk is labeled systematic @ @ @ @ @ @ @ .
Following the MPT through the diversification , only unsystematic risk is eliminated .
Systematic risk can not be removed through the diversification .
Consequently , it is held that return on any stock or portfolio will be always related to the systematic risk , i.e.
, the higher the systematic risk , the higher the return .
The systematic risk of stocks captures the reaction of individual stocks to general market movements .
Some stocks tend to be more sensitive to market movements while other stocks display less sensitivity .
The relative @ @ @ @ @ @ @ means of statistical methods and is known as beta .
( Beta is the numerical description of systematic risk ) .
If a stock has a beta of 2 it means that on average it swings twice as much as the market .
If the market goes up by 10 percent , the stock tends to rise by 20 percent .
If , however , the stock has a beta of 0.5 , then it tends to be more stable than the market .
The major problem with the MPT framework is that @ @ @ @ @ @ @ the same expectations about future securities ’ returns .
Yet if participants are alike in the sense of having homogeneous expectations , then why should there be trade ?
After all , trade implies the existence of heterogeneous expectations .
This is what bulls and bears are all about .
A buyer expects a rise in the asset price while the seller expects a fall in the price .
The MPT framework also implies that market participants have the same knowledge .
Forecasts of asset prices by market participants are clustered around the @ @ @ @ @ @ @ true value randomly distributed .
It also means that since , on average , everybody knows the true underlying value , then no one will need to learn from past errors , since these errors are random and therefore any learning will be futile .
In the words of Hans-Hermann Hoppe , If everyone ’ s knowledge were identical to everyone else ’ s , no one would have to communicate at all .
That men do communicate demonstrates that they must assume that their knowledge is not identical .
Is Past and @ @ @ @ @ @ @ it valid to argue that past and present information is embedded in prices and therefore of no consequence in the forecast of asset prices ?
For instance , a market-anticipated lowering of interest rates by the central bank , while being regarded as old news and therefore not supposed to have real effects , will in fact set in motion the process of the boom-bust cycle .
We hold that neither the timing of the economic bust nor the length of an economic boom can be discounted as such by market participants .
@ @ @ @ @ @ @ bust is that before it starts most investors tend to be very optimistic about the business environment—the bust catches them by surprise .
Also , various factors , once set in motion , initially only affect some individuals ’ real income .
As time goes by however , the effect of these causes spreads across a wider segment of individuals .
These changes in the real incomes of individuals generate changes in the relative prices of assets .
To suggest , then , that somehow the market will quickly incorporate all the future @ @ @ @ @ @ @ us how it is done is questionable .
Now , the guiding principle of the MPT for combining stocks is that each stock represents activities that are affected by given factors differently .
Once combined , these differences will cancel each other out , thereby reducing risk .
However , it does not necessarily always work this way .
During a large financial crisis , various asset prices that normally have an inverse correlation become positively correlated and fall together .
Furthermore , in an attempt to minimize risk , practitioners of the @ @ @ @ @ @ @ of diversification .
Having a large number of stocks in a portfolio might leave little time to analyze the stocks and understand their fundamentals .
This could raise the likelihood of putting too much money in bad investments .
Should Investors Focus on Risk Rather Than Profit Opportunities ?
Given that securing profit in the MPT framework is dominated by random factors , the emphasis in the investment decision of this framework is on diversification in order to minimize risk .
But an investor who is preoccupied with risk rather than identifying profit @ @ @ @ @ @ @ On this Mises wrote , There is no such thing as a safe investment .
If capitalists were to behave in the way the risk fable describes and were to strive after what they consider to be the safest investment , their conduct would render this line of investment unsafe and they would certainly lose their input….The owner of capital does not choose between more risky , less risky and safe investments .
He is forced , by the very operation of the market economy , to invest his funds in such a @ @ @ @ @ @ @ needs of the consumers to the best possible extent .
A capitalist never chooses that investment in which , according to his understanding of the future , the danger of losing his input is smallest .
He chooses that investment in which he expects to make the highest possible profits .
John Maynard Keynes held similar view .
On August 15 , 1934 , Keynes wrote to Francis Scott , the Provincial Insurance chairman , As time goes on , I get more and more convinced that the right method in investment is @ @ @ @ @ @ @ which one thinks one knows something about and in the management of which one thoroughly believes .
It is a mistake to think that one limits one ’ s risk by spreading too much between enterprises about which one knows little .
The MPT gives the impression that there is a difference between investing in the stock market and investing in a business .
However , the stock market does not have a life of its own .
The success or failure of investment in stocks depends ultimately on the same factors that @ @ @ @ @ @ @ .
The proponents of the modern portfolio theory hold that diversification is the heart of investment .
The key should be evaluation of the profitability of various investments and not diversification as such .

According to the modern portfolio theory (MPT), financial asset prices always fully reflect all available and relevant information, and any adjustment to new information is virtually instantaneous.
In this way of thinking, asset prices respond only to the unexpected part of any information, since the expected part is already embedded in prices.
For instance, if the central bank raises interest rates by 0.5 percent, and if market participants anticipated this action, asset prices will reflect this expected increase prior to the central bank raising interest rates. Note that once the central bank lifts the interest rate by 0.5 percent this increase will have no effect on asset prices, since it is already embedded in asset prices.
Should, however, the central bank raise interest rates by 1 percent, rather than the 0.5 percent expected by market participants, then the prices of financial assets will react to this additional increase.
According to the MPT, the individual investor cannot outsmart the market by trading based on the available information since the available information is already contained in asset prices.
This means that methods, which attempt to extract information from historical data, such as fundamental analysis or technical analysis, are of little help. For whatever an analyst uncovers in the data is already known to the market and hence will not assist in “making money.”
By this logic, stock market prices move in response to new, unexpected information. Since by definition the unexpected cannot be known, this implies that an individual’s chances of anticipating the general direction of the market are as good as anyone else’s chances.
Following the MPT, since the future direction of the stock market cannot be known, then the only way of earning above average returns is to assume greater risk. A security whose returns are not expected to deviate significantly from its historical average is termed as a low risk. A security whose returns are volatile from year to year is regarded as risky.
The MPT assumes that investors are risk averse and they want high guaranteed returns. To comply with this assumption the MPT instructs investors on how to combine stocks in their portfolios to give them the least possible risk consistent with the return they seek. MPT shows that if an investor wants to reduce investment risk, he should practice diversification.
According to the MPT, a portfolio of volatile stocks can be combined together and this in turn will lead to a reduction of the overall risk of the portfolio. The guiding principle for combining stocks is that each stock represents activities that are affected by given factors differently. Once combined, these differences will cancel each other out, thereby reducing the total risk, so it is held.
Consider the following simple example:
Activity A Activity B Cold Weather 20% –10% Warm Weather –10% 20%
Let us assume that, on average, half of the time the weather is cold and half of the time it is warm. According to the table, investment in activity A will yield a 20 percent return in cold weather and in warm weather will produce a loss of 10 percent. On average, the return by investing in activity A will be 5 percent. The same outcome will be obtained with investment in activity B.
The MPT then suggests that if an investor diversifies and invests one dollar in activity A and one dollar in activity B then he will be guaranteed a 5 percent return regardless of weather conditions. In warm weather, one dollar invested in activity B will produce a 20 percent return, whilst one dollar invested in activity A will produce a 10 percent loss. Investors’ total return on two dollars invested in A and B will be 5 percent.
Exactly the same result will be obtained for cold weather conditions. This example illustrates that through the magic of diversification, regardless of weather conditions one can obtain a risk-free 5 percent return on investment.
This example shows that as long as activities are affected differently by given factors there is a place for diversification, which will eliminate risk.
Systematic versus Unsystematic Risk
According to the MPT risk can be broken into two parts. The first part is associated with the tendency of returns on a stock to move in the same direction as the general market. The other part of the risk results from factors peculiar to a particular company. The first part of the risk is labeled systematic risk, the second part, unsystematic.
Following the MPT through the diversification, only unsystematic risk is eliminated. Systematic risk cannot be removed through the diversification. Consequently, it is held that return on any stock or portfolio will be always related to the systematic risk, i.e., the higher the systematic risk, the higher the return.
The systematic risk of stocks captures the reaction of individual stocks to general market movements. Some stocks tend to be more sensitive to market movements while other stocks display less sensitivity.
The relative sensitivity to market movements is estimated by means of statistical methods and is known as beta. (Beta is the numerical description of systematic risk). If a stock has a beta of 2 it means that on average it swings twice as much as the market. If the market goes up by 10 percent, the stock tends to rise by 20 percent. If, however, the stock has a beta of 0.5, then it tends to be more stable than the market.
Does the MPT Framework Make Sense?
The major problem with the MPT framework is that it assumes that all market participants have the same expectations about future securities’ returns. Yet if participants are alike in the sense of having homogeneous expectations, then why should there be trade?
After all, trade implies the existence of heterogeneous expectations. This is what bulls and bears are all about. A buyer expects a rise in the asset price while the seller expects a fall in the price.
The MPT framework also implies that market participants have the same knowledge. Forecasts of asset prices by market participants are clustered around the true value, with deviations from the true value randomly distributed.
It also means that since, on average, everybody knows the true underlying value, then no one will need to learn from past errors, since these errors are random and therefore any learning will be futile. In the words of Hans-Hermann Hoppe,
If everyone’s knowledge were identical to everyone else’s, no one would have to communicate at all. That men do communicate demonstrates that they must assume that their knowledge is not identical.
Is Past and Present Information Already in Prices?
Is it valid to argue that past and present information is embedded in prices and therefore of no consequence in the forecast of asset prices?
For instance, a market-anticipated lowering of interest rates by the central bank, while being regarded as old news and therefore not supposed to have real effects, will in fact set in motion the process of the boom-bust cycle.
We hold that neither the timing of the economic bust nor the length of an economic boom can be discounted as such by market participants. For instance, what typifies an economic bust is that before it starts most investors tend to be very optimistic about the business environment—the bust catches them by surprise.
Also, various factors, once set in motion, initially only affect some individuals’ real income. As time goes by however, the effect of these causes spreads across a wider segment of individuals. These changes in the real incomes of individuals generate changes in the relative prices of assets. To suggest, then, that somehow the market will quickly incorporate all the future changes of various present causes without telling us how it is done is questionable.
Now, the guiding principle of the MPT for combining stocks is that each stock represents activities that are affected by given factors differently. Once combined, these differences will cancel each other out, thereby reducing risk.
However, it does not necessarily always work this way. During a large financial crisis, various asset prices that normally have an inverse correlation become positively correlated and fall together.
Furthermore, in an attempt to minimize risk, practitioners of the MPT tend to institute a high degree of diversification. Having a large number of stocks in a portfolio might leave little time to analyze the stocks and understand their fundamentals. This could raise the likelihood of putting too much money in bad investments.
Should Investors Focus on Risk Rather Than Profit Opportunities?
Given that securing profit in the MPT framework is dominated by random factors, the emphasis in the investment decision of this framework is on diversification in order to minimize risk.
But an investor who is preoccupied with risk rather than identifying profit opportunities is likely to undermine himself. On this Mises wrote,
There is no such thing as a safe investment. If capitalists were to behave in the way the risk fable describes and were to strive after what they consider to be the safest investment, their conduct would render this line of investment unsafe and they would certainly lose their input….The owner of capital does not choose between more risky, less risky and safe investments. He is forced, by the very operation of the market economy, to invest his funds in such a way as to supply the most urgent needs of the consumers to the best possible extent. A capitalist never chooses that investment in which, according to his understanding of the future, the danger of losing his input is smallest. He chooses that investment in which he expects to make the highest possible profits.
John Maynard Keynes held similar view. On August 15, 1934, Keynes wrote to Francis Scott, the Provincial Insurance chairman,
As time goes on, I get more and more convinced that the right method in investment is to put fairly large sums into enterprises which one thinks one knows something about and in the management of which one thoroughly believes. It is a mistake to think that one limits one’s risk by spreading too much between enterprises about which one knows little.
Summary and Conclusion
The MPT gives the impression that there is a difference between investing in the stock market and investing in a business. However, the stock market does not have a life of its own. The success or failure of investment in stocks depends ultimately on the same factors that determine success or failure of any business.
The proponents of the modern portfolio theory hold that diversification is the heart of investment. The key should be evaluation of the profitability of various investments and not diversification as such.