The political and banking classes both demand easy money right now. (They always want it.) Print more and more money and the world will continue on as it has (limping that is) for the past 5 years. This is the “new normal.” Sure it’s corrupt, sure it’s counterfeiting, sure it encourages unsound economic and political decisions, but hey we need to do what we need to do.
Where do modern economic bubbles come from? They come from the world central banking system, chiefly the Fed, the prime mover of crony capitalism.
Recently I wrote a piece entitled Boycott Back Friday. Generally it was well received. Being fans of capitalism and the voluntary exchange of goods and services we made the point that it was entirely reasonable to opt out of the buying frenzy from a pro-market perspective. To value time (time is money) with one’s family and more than standing in line to buy things is the very essence of what a free market is all about.
3 key components to wealth which lasts generations are said to be gold, land, and art. The first 2 classes are somewhat obvious, but art is less so. Yet the rich over the centuries have always invested in paintings and sculpture.
Sure the Community Reinvestment Act (a totally crony law) had something to do with housing’s abrupt rise and fall in this country. And there were other factors besides Fed policy. But the primary reason why the global housing bubble, and before that the tech bubble, blew up and then collapsed is because of the easy money policies of one Alan Greenspan.
Will Janet Yellen, nominated by President Obama to head the Fed, provide a reasoned defense of current Fed policies in her upcoming Senate confirmation hearings? It isn’t likely.
This comes from Romney’s chief economic “surrogate.” A “conservative” economist.
Looks like David took the summer off, but he’s still mad as hell.
The key to the whole big giant global game is the dollar as the world reserve currency. If faith in the dollar is ever lost internationally, and we are headed down that road, the game is up. That is the thing to watch for. When and if this happens all of our lives will change in very significant ways, quickly.
Politicians take note. This should really get the campaign contributions flowing from companies, labor unions, lawyers, and real estate interests.