Thursday, July 17, 2008

Why does fuel in the US now cost so much?
The inflationary chickens have come home to roost: a massive market correction
The simple fact of the matter is that gas has been over $4.00 a gallon outside the U.S., off and on, for years.

Gas purchased in the U.S. now costs just about what it should, given inflation between now and 1971.

Comparing the cost of a gallon of gas to “real money” like silver — the value of a gallon of gas is relatively unchanged. The cost of a gallon of gas in terms of the fake, inflation-roasted dollars we all must use, well, that’s another story.

So why has the price changed so fast recently? The answer is the same as always: the State did it.

“The premise is that the rate of oil price increase proves that no free market is operating.”

My guess: the controls placed on gasoline prices in the U.S. wore out.
The Greater Depression and what you should do about it
Hunker down, save your money and stay in the state of grace
I believe in the existence of the business cycle. That’s partly because almost everything in life is cyclical.

Government intervention in the economy — through taxes, regulation and, most importantly, currency inflation — causes distortions and misallocations of capital that must eventually be unwound.

The boom was financed largely by debt, which made everybody feel and act much wealthier than they really were. It’s as though you borrowed a million dollars and spent it all on wine, song and high living.
It’s like the Prodigal Son with interest rates.

‘Simpsons’ reference: it’d be nice if everything turned sepia-tone. ‘Makes me all nostalgic.’

Little war criminals get punished; big ones don’t
Hussein is hanged, Miloševič hauled off to the Hague...
... of course the Great Moral West does not commit war crimes. War crimes are charges fobbed off on people demonized by the Western media, such as... the Sudanese al-Bashir.

Iraqis and Afghans suffer the same fate.

The West gives itself and Israel a pass while damning everyone else.

A kid who trained guard dogs is being deported as a war criminal, but the head of state who launched two wars of naked aggression, resulting in the deaths of more than 1.2 million people, and who has the entire world on edge awaiting his third war of aggression, this time against Iran, is received respectfully by foreign governments.
Feel-good marches do nothing. Bush and Cheney will get away with it.

Same advice as above: dig in, say your prayers and wait for it all to screech to a halt as it goes broke. Stay home in November.

From LRC.

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