Skip to main content

How many times do I have to say it....

....the problems with the economy do not stem from consumption related issues, they stem from 1.) the lack of domestic production, and 2.) super liquidity.

Overall there are too many dollars floating around in the economic system to try to "provide full employment and low interest rates," to use Bernanke's words, while not creating opportunity through the productive mechanisms of the economic structure. So basically, what he means is that after Wall Street has been slathered with enough green to cover a St. Paddy's day festival in Ireland, and the value of the dollar collapses, we will need an alternate way to fuel the economic structure.

This can be done in three ways, 1.) by opening the economy up for the average person to competing currencies and the use of commodities as trade items, or a return to the use of "silver and gold" as legal tender or 2.) through a political and populist redistribution of wealth and 3.) through continued aggressive warfare that leads to depopulation.

It CANNOT be solved by increasing the supply of money and injecting more liquidity into the system at the point where it is weakest, that is, into the banks.

If liquidity needs to be injected into the system anywhere it is directly into the pockets of the people, and not through a bum tax refund but through meaningful long term, productive employment opportunities within the domestic economic structure.

When not addressed all of these factors lead not necessarily to a depression, though it is highly likely and between that and credit contraction and direct government intervention virtually guarantee a depression, but to the fear of political populism.

This populism can come about in one of two ways, either, 1.) Franklin Roosevelt's use of J. M. Keynes or J.K. Galbraith Solution or 2.) Tom Jefferson's elimination of central banking and return to sound money, this is called the founder's solution.

This reluctance to accept either the Keynes solution or Galbraith solution, or to follow the advice of the founders, in essence ensures that we all become the working poor.

Instead of equality in the terms of of our rights and obligations, the only equality you have in an unaddressed command market (as opposed to a true free market) is that you are equally as poor as your neighbor.

Either of these solutions, either the Keynes' or Founder's solution manifest themselves as political populism. That is the same populist political movements that terrify the super-elite masters into redistributing some of their wealth as Henry Liu explains.....or to opening up the market.

Is anyone out there even listening to this advice? Or have we chosen depopulation as the best and most morally comfortable way to make the system work again? And, if so, what does that say about the system in the first place?

Comments

Popular posts from this blog

The Obligatory Libertarian Tax Day Post

The most disturbing factoid that I learned on Tax Day was that the average American must now spend a full twenty-four hours filling out tax forms. That's three work days. Or, think of it this way: if you had to put in two hours per night after dinner to finish your taxes, that's two weeks (with Sundays off). I saw a talking head economics professor on some Philly TV channel pontificating about how Americans procrastinate. He was laughing. The IRS guy they interviewed actually said, "Tick, tick, tick." You have to wonder if Governor Ruth Ann Minner and her cohorts put in twenty-four hours pondering whether or not to give Kraft Foods $708,000 of our State taxes while demanding that school districts return $8-10 million each?

New Warfare: I started my posts with a discussion.....

.....on Unrestricted warfare . The US Air force Institute for National Security Studies have developed a reasonable systems approach to deter non-state violent actors who they label as NSVA's. It is an exceptionally important report if we want to deter violent extremism and other potential violent actors that could threaten this nation and its security. It is THE report our political officials should be listening to to shape policy so that we do not become excessive in using force against those who do not agree with policy and dispute it with reason and normal non-violent civil disobedience. This report, should be carefully read by everyone really concerned with protecting civil liberties while deterring violent terrorism and I recommend if you are a professional you send your recommendations via e-mail at the link above so that either 1.) additional safeguards to civil liberties are included, or 2.) additional viable strategies can be used. Finally, one can only hope that politici

More of This, Please

Or perhaps I should say, "Less of this one, please." Or how about just, "None of them. Ever again. Please....For the Love of God." Sunshine State Poll: Grayson In Trouble The latest Sunshine State/VSS poll shows controversial Democratic incumbent Alan Grayson trailing former state Senator Dan Webster by seven points, 43 percent to 36 percent. A majority of respondents -- 51 percent -- disapprove of the job that Grayson is doing. Independents have an unfavorable view of him as well, by a 36/47 margin. Grayson has ignored the conventional wisdom that a freshman should be a quiet member who carefully tends to the home fires. The latest controversy involves his " Taliban Dan " advertisement, where he explicitly compares his opponent to the Taliban, and shows a clip of Webster paraphrasing Ephesians 5:22 -- "wives, submit to your husbands." An unedited version of the clip shows that Webster was actually suggesting that husba