At best we have been treading water since 2008. Check that, we’ve been treading water while the tide continues, unrelentingly to go out.
The Fed’s Consumer Financial Protection Bureau is a crony capitalist’s dream, but don’t expect to read about it in the press, especially in Bloomberg.
In the story below, a Bloomberg reporter refuses to acknowledge that the Consumer Financial Protection Bureau is renting space from an Obama bundler (major fundraiser) while its boondoggle building is being built.
The market keeps going up so things are good right?
What is with these guys? They hate free prices. They hate human action. They deeply fear the market mechanism. They want to believe that THIS TIME they can get it right. They can beat the natural ebb and flow of markets. They can manage what can’t be managed. They are smart enough. They can do it.
Is he right?
Think of debt as a tower. It can be built up and built up, and if juiced by central banks can be built up even more. But eventually the “tower” becomes too heavy and it collapses on itself in chaos and pain.
Because in real terms (adjusted for inflation) you literally are poorer, with pretty much each passing day.
Faber is a smart guy who has been wrong and he has been right. He was particularly sharp in February of 2009 when he called the bottom of a market he didn’t want to buy. I remember him doing this so I listen when he speaks.
We have been “pressing the case for sound money” for a very long time. Many others, particularly those economists considered part of the Austrian School have been doing so for decades. It was the Austrian School economists who saw 2008 coming. It was the Austrians who warned the world. But the Austrians are a truly and deeply free market bunch, and politicians don’t like free markets. So the warnings went unheeded.