Feb 13, 2008

Pollyanna Plague

Nelson Hultberg has a rebuttal for the Pollyannas...

The Fed is not a "swift and decisive captain at the helm of the good ship Gibraltar." It is a mafia gang of ideological thugs who have been handed a printing press that pours out green pieces of paper because 70 years of sham economics in the school system have bamboozled Americans into believing paper money is wealth if we call it wealth. But as any economist knows, money itself is not wealth. If money was actually wealth, then the government could just print up a million dollars for everyone and wipe poverty off the face of the earth. Money is just a substitute for wealth, a store of value for it. True wealth is the goods and services that we have produced. It can never be created with a printing press.
So are things really that bad?...The Fed has shown that it is willing to act quickly to reverse course and hike interest rates once it is clear that the economy is through this bout of weakness.

Yes, the Fed may be able to whipsaw us again into another bout of "boom times," and then whipsaw us back to higher rates. That's the plan, I'm sure. But I doubt it will work this time around. The mortgage mess, the derivatives overload, the insidious termites of debt, the plague of protracted foreign wars, the cerebral decadence and fraud of our intellectual class all add up to the Lilliputians not just tying Gulliver down, but poisoning him in the process to keep him down for a long time. I would say the Fed is going to be whipsawing us into a long bout of "stagflation" rather than "boom times." And since the Fed will not want to assume responsibility for bringing on such fiscal insanity, it will cover its connection to the bad times with a lot of doubletalk and sophistry. The boys at the Fed are good at sophistry to cover up the ideological criminality that launched their cartel back in 1913 and which is the cause of this long train of monetary debasement promoted as "new economics." Unfortunately our establishment media are very bad at deciphering sophistry.

Here lies the real nature of the Keynesian economic paradigm. It is a grandiose endeavor in SOPHISTRY and IDEOLOGICAL CRIMINALITY. This, in a nutshell, is the economic history of the 20th century. A band of collectivist ideologues (with the philosophical prescience of John Law and the moral compass of a pack of wolves) hijacked Western civilization. They have not guided our airplane bravely through the treacherous storms of reality. They have created the treacherous storms themselves. This is what human beings get when they attempt to extract more from life than they are willing to put in.

One man's recession is another man's goldmine. Invest accordingly. See you at the real bottom.

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