C.S. Hayden's Blog: July 2009

Friday, July 31, 2009

Mike Rozeff on the Fed's Wrecking of the Economy and Bernanke's Collectivism

After some very insightful quantitative analysis, Mike Rozeff makes the following observations in an article about the Fed and Ben Bernanke's collectivism:

It is entirely reasonable to conclude that discretionary central banking with open market operations and without gold playing an essential constraining role is the cause of greater price instability and price inflation. Central banking with discretionary open market operations and without the constraint of gold is what helps defines central banking; that and the fact that its notes are legal tender by law. If open market operations were taken away and if the central bank had to redeem its currency in gold, we would no longer have central banking as we know it now and as we have known it since 1913. For this reason, it is reasonable simply to say that central banking is the cause of greater price instability. To achieve price stability, we need only get rid of central banking. If we do that by stripping it of various powers like open market operations and by making it redeem in gold, all the while retaining the shell institution, we are essentially getting rid of central banking.

We can reach these conclusions if we look at the record. They are not conclusions that depend on being a libertarian, a socialist, a democrat, a republican, a collectivist, or anything else. And if we go into the matter more deeply and examine the theory of how the monetary systems operate before and after 1913, we will affirm these conclusions again. I will do this only briefly, but enough to convey the basic idea. Banks before 1913 could not inflate in any serious way because if they did, there would be a run on the bank. The depositors would demand redemption in gold, and that would cut short the bank’s inflation. So banks had to be careful about making too many loans. After 1913, the FED essentially had the power to inflate without having to worry about gold redemption. At first it did this for special reasons like wars and depression; and gold actually flowed into the U.S. because of problems overseas. But eventually, the government simply stopped redeeming in gold altogether, so that the FED could inflate without gold as a constraint. And so, no matter what our political beliefs are, we have to conclude that sensible theory also tells us that central banking causes price instability.

Friday, July 24, 2009

Dow above 9,000 -- now what?

The Dow broke the 9,000 barrier yesterday for the first time since January. Back in March the Dow had reached a low of 6,440, so we have seen significant improvement in the economy, right?

Well, here are a couple supplemental thoughts, first by Robert Higgs:

Except for the Austrian School economists, hardly anyone is worried that the extensive restructuring [e.g., bankruptcies, ending failed projects, reallocation of capital toward productive uses, etc.] necessary to put the economy back on a healthy, market-sustainable track is not being carried out – or, certainly not being carried out on the scale that the current situation requires. For the overwhelming majority of today's investors, economists, and policy makers, output is output, and spending is spending. They are blind to the mountain of malinvestments staring them in the face. In the seventy years since John Maynard Keynes steered macroeconomic policy thinking into the dead-end street of misleading, highly aggregative thinking, tremendous damage has been done, but clearly a great deal of additional damage will have to be suffered before the people who bear the burdens of this kind of policy-making awaken to its operation as a mechanism for robbing the many for the benefit of the politically connected few.

In other words, all the massive monetary inflation and central government bailouts are stifling the correction needed to bring about true recovery. Gary North comments today in his email:

Stock market investors shrug off a disaster in our midst: mass layoffs. Investors act as though it will soon be business as usual. Companies cut costs by firing employees that have been with them for decades. Then the companies can report higher earnings from cost-cutting measures. The media then proclaim an increase in earnings. But how will these increases be sustained? How will an unemployment rate of 11% help get the economy back on its feet?

Thursday, July 23, 2009

Venture Academy, from New Venture Lab and Franklin Springs Family Media

YouTube Venture Academy Channel

Franklin Springs Family Media preview

Wednesday, July 22, 2009

Peter Schiff, Economic Prophet and Potential '10 CT Senate Candidate

Tuesday, July 21, 2009

Forbes Editor William Baldwin on a world drowning in debt

I have been swamped for the last couple of weeks since returning from Boston, but I am going to try to make time eventually to post more notes and pictures from Boston, as well as some more posts about economics (I still have more to share for the Carlos Lara lecture, from my talk at the TPA conference, from my talk tomorrow evening, and more). As I prepare for the talk tomorrow evening, which I will present to a church group with fellow economics enthusiast Peter Cook, I could not help but notice some good insights about debt from the latest issue off Forbes.

The article is by editor William Baldwin (p. 14), and he states that the “world is drowning in debt” because we promote debt as a matter of public policy. Yes, the state actively coaxes its citizens to enslave themselves. He says, “Debtors get bailouts, handouts, and windfalls. People with clean balance sheets do not.” He lists four ways the state rewards debtors:

1) loan forgiveness (e.g., bailing out home buyers and banks, financed by taxes on the frugal; college loans forgiven by those who take public service jobs, according to Obama's policy; politically liberal urgings for forgiveness of debt to third-world countries, many of which are political dictatorships); 2) credit guarantees as a means of stimulating certain sectors (e.g., windmill farms), at the expense of credit allocated to conservatively-financed ventures; 3) the deduction for mortgage, student loan, and corporate interest, which Baldwin calls “the stupidest and most popular deduction in the tax code”; 4) inflation, which destroys the value of the dollar and allows debtors to pay their debts with Ben “helicopter” Bernanke’s “funny money.”

Debt is a central pillar for modern statist economics. The Fed and the banking establishment create money, ex nihilo, through its fiat powers and fractional reserve credit system. This is an assertion of sovereignty, an attempt to satisfy the covetousness and larceny in man's heart, by presumptively usurping God's singularly creative powers to create something out of nothing. We clamor for debt and lending, and when these grind to a halt -- whether for consumers, businesses, or statist establishments -- so does massive consumption and the illusion of prosperity and profit. We find out that we have received nothing for something, rather than something for nothing.

Friday, July 10, 2009

John Calvin: Man of the Millennium, by Dr. Joe Morecraft at the Boston Reformation 500

Dr. Joseph Morecraft, III delivered the "thesis" of the Reformation 500 Celebration on Wednesday night last week in Boston.

Dr. Morecraft's address was entitled, John Calvin: Man of the Millennium, my notes from which are below:

Is the moniker "Man of the Millennium" hyperbolic when used to describe Calvin? The clear answer is no, for the only other person in the history of the church since the time of Christ who might deserve such a title is Augustine.
In 1859, when Darwin published his magnum opus, On the Origin of Species, a reviewer rejoiced to have an alternative to Calvin's God. Yet, Calvin remains influential in every area of our lives due to his theology and ethics.
We should build upon Calvin as he argues from Scripture. And we must hasten to add that the Lord Jesus Christ alone is the Savior and King; compared to Him, Calvin is a mere grasshopper, and we, less than grasshoppers.
Even so, God mastered Calvin and used him profoundly to pave the way for liberty far and wide.
The great B. B. Warfield said Calvin was great and influential because of his understanding of and surrender to God.
Douglas Kelly, in The Emergence of Liberty in the Modern World, pointed to Calvin as the key influence among groups of reformers in nations around the world that experienced historic movements toward liberty under God.
Calvin is referred to as the "Father of America," as the American mind of the 1770s was rooted in his thinking. Schaff, the great church historian, asserted that Calvinism has promoted manly character and liberty.
Calvin had several phases in his life: 1) 1509-1536, Preparation and Conversion, 2) 1536-1538, First Stay in Geneva, 3) 1538-1541, Ministry in Strasbourg, Germany, and 4) 1541-1564, Return to Geneva.
1509-1536, Preparation and Conversion: Calvin was born into a Roman Catholic home in France and was early on a stiff moralist, devout Roman Catholic, and extreme student. He was converted between 1532-34 through influences from his cousin and teacher. At the time of his conversion, he became God-centered and God-filled. He said in his commentary on Psalms that God suddenly subdued him and brought his mind to teachableness. Calvin was forced to leave France because of danger after the Placard Incident, when opposers to the Roman Catholics showed much more zeal than wisdom. Calvin fled to Strasbourg, then Basel, and Italy. He returned to France for a time and then back to Germany. During one of his travels in July 1536, Calvin as diverted south to Geneva because of a war. At this time Calvin wrote his earliest version of what became his Institutes of the Christian Religion. (Dr. Morecraft recommends the Battles English translation of the 1541 edition and says the Institutes are the most important book in his library next to the Bible -- get the work and, more importantly, read it!)
There are three attributes of various Calvin quotes: 1) brilliant, clear exposition, 2) great literary skill, and 3) colorful sentences. One example is his first paragraph of the Institutes in which he says we must have a right knowledge of God to have a right knowledge of ourselves and vice versa, both of which come from the Holy Spirit.
1536-1538, Calvin's First Stay in Geneva: William Farel was fearless, though threatened in Geneva. He brought two things to Geneva: Reformation and Calvin. Initially, Calvin was not inclined to stay in Geneva, but Farel compelled him by threatening him with a call for God's judgment if he sought his own will rather than God's. Calvin asserted that a true church had preaching of the Word and administration of the Sacraments, and the Puritans added discipline. Calvin thought communion should be administered at least weekly and did not want to leave the table open for anyone and everyone, for which he and Farel were eventually fired.
1538-1541, Ministry in Strasbourg, Germany: Calvin met Bucer in Germany and said that no one had devoted more time to the study of Scripture. Calvin married Idelette de Bure, the widow of a former Anapabtist who had two children, in 1540.
1541-1564, Calvin's Return to Geneva: While Calvin was gone, the Roman Catholic Sadolet treacherously encouraged the Genevans to return to the Roman Catholic faith. No one in 1540 was qualified to respond to Sadolet, so the Council urged Calvin to refute Sadolet and return to Geneva. Calvin was understandably hesitant due to the afflictions he had undergone during his first stay in Geneva, but he agreed to return. The town had gone downhill since Calvin's departure, but God was working to clear obstacles to reform in the city. Notably, the council members who drove Calvin away were removed, and some were executed for grievous crimes.
We owe church liberty to Calvin under God because he was the first to insist on independence of the church from the state. The church was separated from the state and self-governing, which was new with Calvin. Both institutions were to be separate, but neither was to be neutral toward God. The church was to be republican and presbyterian, with elders elected by the people. This ecclesiastical republicanism is the model for later civil republicanism.
Calvin saw four offices in the church: 1) preaching elder, 2) ruling elder, 3) deacon, and 4) teacher, who oversaw Christian education. Calvin was interested in reformation of the family and all of society, as well as reformation of the church.
Henry Van Til said that Calvin was the theologian of culture and reformer of all of life.
Calvin would have rebuked evangelicals and fundamentalists who ignore Christ as Cosmic Savior, not mere personal Savior. Christendom before Calvin had sought the supremacy of Christ and the Word in all areas of life but had done so poorly. Calvin wanted a renewal of Christendom through the Word of God. He claimed everything for Christ and undertook reform accordingly. In terms of Matthew 28, all the nations of the world were to be discipled.
Calvin faced three types of opposition: 1) libertines, 2) anabaptists (not the baptists' forefathers but rather the pietists, revolutionaries, communists, pacifists, antinomians, et al.), and 3) the Roman Catholic church. The major controversy was the matter of authority. Who was in charge -- God, man, or the church? Also, what was the Word of God -- Scripture, tradition, and/or reason? And what was the proper nature of worship and salvation?
Regarding the controversial matter of Servetus, Calvin did not burn him or anyone else at the stake. Servetus ridiculed the doctrine of the Trinity and was condemned by the Roman Catholics as a heretic. He was wanted in many nations as a criminal and subverter in his day. Servetus was tried and sentenced, and Calvin -- who did not decide a single detail of the trial -- tried to convince the Council not to so cruelly execute Servetus at the stake. Calvin applied commandments in Deuteronomy and Leviticus to assert that idolatrous heresy was a capital crime, so he agreed in principle with the execution of Servetus. Once again, though, he decided nothing at the trial and had extremely limited power in Geneva during his time there.
Calvin lived to be 54 and died in May 1564. He longed for, prayed for, and worked for a vision for the future. He tried to convince King Francis I not to persecute the French Huguenots by writing his Institutes to set forth the biblical doctrines of what became known as the Reformed faith.
Calvin wanted to keep God's glory safe, His truth and Kingdom established. His commentaries on Isaiah 2:2-4 and Jesus' prayer "Thy Kingdom Come" show that God would enlighten the world. We must not judge by present appearance but from the promise of Kingdom increase. We must not get our doctrine from newspapers or despise the day of small beginnings. Indeed, we must walk by faith rather than sight.
What is the chance that we will take back Boston? (This refers to Dr. Morecraft's statement earlier in the evening of why he ventured so far north of the Mason-Dixon Line: to take back Boston, which brought roaring cheers and applause from the audience.) There are indeed no chances with God, as He is the sovereign Ruler over all. Calvin said that the whole world would be reduced to obedience to Christ.
Calvin was involved in worldwide evangelism efforts, even at the risk of his own life. World missions took place under his leadership and with those who came after him. And in our day, we must evangelize, begging people to come to Christ (see II Corinthians 5). Our duty is to Christianize Christians and win others to Christ.
We must not rest until America has been reduced to obedience to Christ. Then and only then will she be free once again.

John Calvin, reenacted by a Calvin scholar par excellence, made his appearance last Friday night in Boston to debate Charles Darwin, a week before Calvin's 500th birthday today, June 10, 2009.

Vision Forum's Reformation 500 Celebration in Boston: Celebrating the Birth and Work of John Calvin and the Great Protestant Reformers

Not since the Jamestown 400 Celebration in Virginia two years ago have I enjoyed such a marvelous and God-honoring celebration as the Reformation 500 in Boston last week. Our family was greatly privileged to join many hundreds of individuals and families in Boston for a celebration of Calvin's 500th birthday, his contributions to the worldwide movement of biblical reform in the 16th century and beyond, the work of his associates in the Reformation, and the far-reaching impact of the Reformation on the founding of our nation, among other notable events of history.

In a conversation with one of the conference speakers Sunday morning, I concluded that the Jamestown Quadricentennial was most notable for its celebratory features. This year's Reformation 500 in Boston, although a glorious celebration in its own right, is better characterized as a springboard for a new generation of worldwide reformation, dominion, and discipleship endeavors among Christian families who stand self-consciously in the theology of the great Reformers who came before us. As Geoff Botkin noted in his important lecture on Semper Reformanda, we embrace the foundational point of doctrine and practice that the church must always be reforming by the Word of God.

The Vision Forum press release states the following:

Although the event included important presentations by church historians and Calvin scholars such as Dr. Joseph Morecraft, one mission was to make the great doctrines of the Reformation and the very lives of the Reformers themselves accessible to the man in the pew and to children. The week’s activities were designed for whole families to enjoy.

. . . “It was our desire to make Reformation history come alive for families,” Phillips commented. “And we are pleased with the enthusiastic response that young and old showed in participating in our Children’s Parade led by Gen. George Washington and our Fife and Drum Corps. Christians from dozens of states, including hundreds of homeschooling families, participated. The children came in costume and had a splendid time. And their active conversations with the formal reenactors were a thrill to behold.” One of the other features of the Reformation 500 was “Calvin vs. Darwin: The Boxing Match of the Millennium”, a vigorous head-to-head debate between two re-enactors representing John Calvin and Charles Darwin’s diametrically-opposing worldviews. Both Calvin and Darwin advanced their ideological positions using the most compelling arguments in their worldview arsenals.

. . . Acknowledging both Calvin and Darwin’s world-shaping influence, Phillips noted: “No two men of the millennium have done more to shape the thoughts of mankind or to effect the political and social destiny of nations than Calvin and Darwin — the former for great good and the glory of God, and the later for unimaginable evil. The children of Calvin and the Reformers gave us the rise of nation states that embraced republican representative government. The children of Darwin gave us Marxism and totalitarianism.”

Doug Phillips, in an insightful article appearing in the Washington Post about Calvin, stated:

Calvin, a humble scholar and convert to Reformation Christianity from Noyon, France, is best known for his influence on the city of Geneva. It was there that his careful articulation of Christian theology as applied to familial, civil, and ecclesiastical authority modeled many of the principles of liberty later embraced by our own Founders, including anti-statism, the belief in transcendent principles of law as the foundation of an ethical legal system, free market economics, decentralized authority, an educated citizenry as a safeguard against tyranny, and republican representative government which was accountable to the people and a higher law.

My life was greatly impacted by the fellowship with many like-minded families, the teaching from God's Word, and stories of the living legacies of our fathers and mothers in the faith who were disciple-makers, Kingdom builders, reformers, dominion-bearers, and faithful Christians. I enjoyed the tours of historic locations in Boston, the debate between "birthday boys" Calvin and Darwin, the parade and fireworks on Saturday, musical interludes, costumed reenactors, and the rejuvenation of my faith and walk as a disciple, disciple-maker, reformer, and dominion-bearer under Christ. Stay tuned for more pictures, descriptions, and notes from the Reformation 500 Celebration.

Thursday, July 09, 2009

A Visit to Plymouth, Massachusetts, "America's Hometown"

Our family visited Plymouth last week before arriving in Boston for the Reformation 500 Celebration. Here are a few of my pictures from our enjoyable and memorable, even if brief, visit to Plymouth:

Here is our family next to the waterfront with ships in the background, including the Mayflower II. (Thanks to Charmagne for taking the pic.)

The Hayden side of my family tree directly descends from John Alden and Priscilla Mullins, passengers on the Mayflower. We pondered whether this store, very close to the Mayflower II replica ship and the Plymouth Rock memorial, was one of John's early entrepreneurial endeavors in the new world. ;-)

Here is the Plymouth Rock Monument.

A close-up of the rock.

The William Bradford Monument, which says:

William Bradford, Governor and Historian of the Plymouth Colony

Born in Austerfield, England - 1590

Died in Plymouth, New England - 1657

On another portion of the monument is this quote from Bradford's Plymouth Plantation:

"Lastly (and which was not least) a great hope, & inward zeall they had of laying some good foundation (or at least to make some way therunto) for ye propagating & advancing ye Gospell of ye Kingdom of Christ in those remote parts of ye world; yea, though they should be but even as stepping stones, unto others for ye performance of so great a work."

And another Bradford quote from the monument:

"So they lefte ye goodly & pleasante citie, which had been their resting place nere 12 years; but they knew they were Pilgrimes, & looked not much on those things, but lift up their eyes to ye heavens, their dearest cuntrie, and quieted their spirits."

I wrote a blog post in 2005 concerning Bradford's view of why the Pilgrims came over to the New World.

At Burial Hill we found two Hayden gravestones, which we hope to research and determine how, if at all, we are related.

The second of the Hayden gravestones.

William Bradford's gravestone at Burial Hill.

Another view of Bradford's gravestone.

Susanna on Fair Street with the two churches in the distant background.

My family with Charmagne on Fair Street. The stone church is Unitarian, and the white church is the Congregational Church of the Pilgrimage, which was started after the 1801 Unitarian controversy, according to Dr. Paul Jehle.

This is my favorite spot in Plymouth, the Forefather's Monument. Dr. Jehle tells all about the monument in his book, Plymouth in the Words of Her Founders. The large figure is Faith, holding a Geneva Bible in her left hand, raising her right forefinger toward heaven, with a star of honor and importance on her forehead, and with her left foot stepping on Plymouth Rock.

A marker at the monument.

This panel tells us that a grateful people erected the monument to remember the forefathers' (Pilgrims') "labors, sacrifices, and sufferings for the cause of civil and religious liberty."

One of the four large figures under Faith is Morality, who holds a tablet of the Ten Commandments and a scroll of Revelation. Her collar is similar to the breastplate worn by Israel's High Priest, symbolizing the priesthood of each Pilgrim, according to Dr. Jehle.

Law holds an oustretched hand to the victim in mercy and the statute laws of the society, according to Dr. Jehle.

Education wears a wreath of learning on her head and points to the book of knowledge. According to Dr. Jehle, the Pilgrims had high literacy due to home education.

According to Dr. Jehle, Liberty's ". . . symbolism . . . exceeds the others as it depicts the progression of liberty from the internal (religious) to the external (civil)." Among these symbols are a slain lion (symbolizing Satan) on his back, broken chains at his feet, and a sheathed sword in a defensive position.

Here is one of the two panels listing the Mayflower Pilgrims.

The second panel with the Mayflower Pilgrims listed.

One of my favorite Bradford quotes on yet another panel.

Eight statuettes, one on each side of the four large figures below Faith, include The Prophet, The Evangelist (pictured), Justice, Mercy, Youth, Wisdom, Tyranny, and Peace.

"Embarkation." This Alto-Relief depicts the Pilgrims leaving Leyden, Holland, in 1620.

Signing of the Mayflower Compact in 1620, written aboard the Mayflower in Provincetown harbor after the Pilgrims were blown off course from their intended destination in northern Virginia, according to Dr. Jehle.

Landing of the Pilgrims on Monday, December 11, 1620.

Alto-Relief of the Peace Treaty with the Indians, which started more than 50 years of unbroken peace between the Pilgrims and their nearest neighbors, according to Dr. Jehle.

Susnanna and Josh pose for a pic in front of the Monument to the Forefathers. We had a great time during our brief visit to Plymouth!

Wednesday, July 08, 2009

The Trip Toward Boston: Texas, Tennessee, and NYC

We had a great time at the AIG Creation Museum Tuesday. We will conclude our trip today (Wednesday) as we drive from St. Charles, MO to Wichita, possibly with a stop along the way to see Grandma Hayden in Kansas City.

For now, here are some pictures of our travels prior to Boston. Lord willing, in the near future I will put up Plymouth and Boston pics, as well as new Creation Museum pics.

Our first stop was Bryce and Sarah (Simpson) DeGroot's wedding in Jefferson, Texas, on June 27. What a special time it was to witness the vows of this new godly couple. Three members of the Smisor family, our friends from Wichita, are also pictured toward the right.

Our next noteworthy stop was the Bollinger's home in Tennessee. I developed a close friendship with the Bollingers, most of whom are pictured here, when I lived in Tennessee for a few months toward the end of last year and the beginning of this year. Also pictured are our friends the West Ladies of Homestead Blessings and Charmagne Smith, who joined us for the trip to Boston.

We arrived in the NYC area Monday night last week and went to the Statue of Liberty on Tuesday. On the way to the Statue we saw this car lot (another equally large lot was on the other side of the road). I remember a conference speaker, as well as an email that was going around a few months ago, with similar pictures of thousands of unsold cars sitting in these types of lots worldwide.

We had stayed in N.J. Monday night, and we took the N.J. ferry (rather than the NYC ferry) to the Statue of Liberty. As a result, we were able to go up to the pedestal because we arrived early enough in the morning for 8 of the 200 free tickets they made available. As of a few days ago, for the first time since 9-11, visitors are now able to go up to the crown, not just the pedestal. Here is a picture of an old Jersey Central railcar that might have transported immigrants who came through Ellis Island. This picture was taken in Liberty State Park in Jersey City.

An early-morning shot of the NYC skyline from the Jersey side of the pond.

Our handsome vessel, Miss New Jersey.

Our new friend from New Zealand, Charmagne Smith, whom we picked up at the Bollinger's house thanks to their efforts to connect us for the Boston trip, joined us for the trip to the Statue of Liberty. Here is a pic with her, my sisters, and yours truly, with our backs to NYC.

The Empire State Building is in the background with a ferry in the foreground.

A shot of Ellis Island, where many millions of immigrants arrived in steamships from the four corners of the world, seeking liberty, opportunity, and adventure in America.

This is a view of the registration room where thousands of immigrants were processed each day.

Shameless promotion of older style statist "education."

New York City.

Another view of the massive registration room on Ellis Island.

Liberty Enlightening the World, a.k.a., La liberté éclairant le monde (thanks to the French who gave us the statue).

Lydia and Susanna on Liberty Island in front of the Statue of Liberty.

Our whole family in front of the Statue (thanks to Charmagne for taking the pic).

We met some very kind Christians from India, two of whom now live in Columbus, Ohio and attend the university there. Here we are pictured in front of the old torch upon which visitors once could stand.

Another view of the old torch.

Ellis Island with Jersey City in the background, taken from the pedestal of the Statue of Liberty.

Lydia, Mom, and Susanna, with NYC in the background.

One of the Park Rangers told us the Twin Towers would have stood not too far from the crane in this picture.

After enjoying our visit to the Statue of Liberty, we experienced NYC traffic. Here is a pic I snapped as we crossed the George Washington Bridge from New Jersey into NYC.

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