Most Keynesian economists do not want to admit that we are in another depression. They find the word painful.
I was talking to a fellow the other day over lunch and we both wondered how it was that Eric Holder could possibly, at this point, remain the Attorney General of the United States. It’s been one blatant abuse of power after another with this guy. Yet he remains.
Money isn’t wealth. It measures wealth the way a ruler measures length, a clock measures time and a scale measures weight.
Boy is this true, but so many people, including the supposed shamans at the Fed fail to grasp (or choose oddly to ignore) this basic concept. Dumping “money” into the economic system isn’t going to make the economy grow, it will only make the money currently in the system worth less.
It’s not quite that simple. But it’s nearly that simple.
How’s this for a depressing passage. It comes from the attached article.
“There’s just a lot more regulation going on,” Zelizer said. “There’s a lot of intersection between the economy and Washington.”
Granted it’s a metals company. But this is a trend which is quietly spreading around the world.
Say what you want about gold but it has held its value for thousands of years. The fiat dollar? Well let’s just say its been a steady march toward becoming trash.
If we want a high value economy, if we want high value jobs, we should have “high value” money. Sound money. Gold backed money. We should have money which can’t be eroded at the whim of our central bank.
The Consumer Financial Protection Bureau, Elizabeth Warren’s baby, and protectorate of the Federal Reserve (the Fed funds the CFPB) is graduating lobbyists left and right. This crew holds the keys to Dodd-Frank for industry and it doesn’t lend out the keys for free.
This isn’t a surprise. We are still in the midst of a lingering depression/recession. People need to get by and retirement for many is down the road in hopefully more prosperous times. Right now the kids need shoes and school clothes.
The one and only time I met Ron Paul was in his office in DC in 2007. I had long admired him and I had come to pitch Dr. Paul on becoming a client of mine. I was a fledgling stock broker and I thought I might be able to interest him in some gold stocks.
What’s funny is that as soon as I walked through the door of his office and he and I sat down I forgot all about doing business and we just talked politics and strategy for about 20-25 minutes.
I left his office with a deepened respect for the man. Something which rarely happens (I now know) after meeting a politician in person.
Well, there is a good bit of it on this website that’s for sure. And it is growing. Today crony capitalism is talked about openly. A few years ago few people knew the term. Read More