At Bloomberg View, I urge the good people of America to resist the burrowing, mind-controlling brain-worm that calls itself "Austrian economics" (despite actually being neither Austrian, nor, except in the most general sense, economics):
In the film ``Star Trek II: The Wrath of Khan,'' the super-genius villain puts alien worms into people’s brains in order to subvert them to his demented cause. I think Khan could have been an Austrian economist. To those of you who have run afoul of the defenders of Austrianism on the Internet, the analogy will be clear. The Austrian worldview is like a brain worm that has infected large swathes of our financial industry, commentariat and general public. Even you, dear reader, may carry one or two of its wriggling larva inside your gray matter.
When the Austrian brain-worm invades, you start believing things like: 1) Federal Reserve money-printing is a government plot to boost big banks, 2) prices are rising much faster than anyone thinks, 3) real “inflation” means money-printing, not an increase in prices, 4) printing money can never boost the economy, 5) academic economics is a plot to use mathematical mumbo-jumbo to cover up government giveaways to big banks, etc., etc.
The Austrian catechisms range from almost plausible (taking toxic mortgage assets off of bank balance sheets must have been part of the reason the Fed did quantitative easing), to somewhere in the neighborhood of the 9/11 truthers and moon-landing hoaxers. Most of the elements of Austrianism are so directly contradicted by data that the belief system practically screens itself for people who are out of touch with reality...Read the whole thing here!
Here is a lengthy response from Austrian economist and blogger Bob Murphy.
Here is a lengthy response from gold-flogging derp-fountain website Zero Hedge.
Here is a brief response from blogger Mike Shedlock.