Episode 52 – The Founder (1:27:25)

Happy holidays everyone! And what better way to open the “commercialization” of the season than by talking about “The Founder” and how the McDonald’s corporation became the global presence it is today.

Robert and I go solo on this one and get fairly deep into the concepts of persistence, specialization and the division of labor.

This was a perfect meatball of a movie for us and we hope you enjoy it.

Catch the movie on VUDU or Netflix.

Also…check out the Black Friday discount on Liberty Classroom by Tom Woods still going…trust us, you won’t want to miss it.

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And also a special deal on the “Tuttle Twins” books series, you know, for the kids:

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Continue reading “Episode 52 – The Founder (1:27:25)”

The Big Short and Curlies

By The Professional Asshole

Auditing is bunkum.

Quoth the Yoda, “insane you are.”

No, really. The entire public auditing side of the accounting profession is wackadoodle.

Many libertarians are also disciples of the Austrian school of economics which teaches that central bank’s involvement in credit creation creates credit bubbles, fueling the boom and bust cycle. But, there is another major threat to financial markets that even many Austrians are not aware of: auditing.

Since the formation of the Securities and Exchange Commission (SEC) in 1933 publicly traded companies have been required to provide independently audited financial statements done by a CPA (Certified Public Accountant). Most public companies go with large accounting firms, like the Big-Four, or a large regional firm. They have internal auditors (usually non-CPA accountants) who do most of the accounting year-round for both management and eventual external auditing. But external auditing is required of financial statements for publicly traded companies. Auditors provide an opinion on the veracity and accuracy of financial statements which aid in investment decisions.

The company being audited is required, however, to pay for its own audit. This creates a perverse conflict of interest—the ones paid to be skeptical of a company (auditors) are being paid by their prospective enforcement subjects. How can auditors be skeptical of their paycheck? As Upton Sinclair said, “It is difficult to get a man to understand something, when his salary depends upon his not understanding it!” Big problem. Continue reading “The Big Short and Curlies”