Saturday, March 21, 2009

The economy
So far so good here, thank God: a job scare that turned out to be a long-hoped-for move to something better, a Chapter 11-bankrupt parent company and a depleted 401k but life as usual. But today’s LRC picks are very scary indeed.
  • Peter Schiff: Rather than solving our problems, more inflation will only add to the crisis. Falling asset prices, the credit crunch, declining consumer spending, bankruptcies, foreclosures, and layoffs are all part of the necessary rebalancing of our economy. These wrenching movements, however painful, are the market’s attempts to resolve the serious problems at the root of our bubble economy. Attempts to literally paper-over these problems will lead to disaster. America has now become a banana republic. It won’t be too long before our living standards reflect our new status. Got gold? Pedantry: in the computer age the state no longer has to literally print money. Like our recorded music and television it’s all digital now, electronic noughts and ones; make-believe (fiat) money is now made out of thin air. But inflation is still inflation: legal counterfeiting essentially.
  • The Fed has embarked on a suicide pact with the holders of U.S. debt.
  • Lies about US economic policy.
  • Surviving fiscal extreme sports. And a post from survivalblog. I am nowhere near as handy as I ought to be.
  • William Grigg: remembrance of recessions past. The good old-fashioned virtues of frugality and conservation, authentically conservative. Use it up, wear it out; make it do, or do without.
  • It’s over — we’re officially, royally f*cked. Like a dissolute nobleman gambling away the family estate in the waning days of the British Empire. This was a casino unique among all casinos, one where middle-class taxpayers cover the bets of billionaires.
  • On the other hand the U.S. economy has pulled out of self-destructive political spirals in the past, spurred on by its business class and corporate leaders, the profit-making and market-creating people who rose above the political turmoil to once again lift the world out of financial crisis. It’s happened many times before, except for once, when it took 20 years to rise out of the Great Depression. But right now U.S. law-making is riddled with slapdash, incompetence and gamesmanship.
  • Also from T1:9: what’s missing now are morals in business says well-meaning Commonwealth chief rabbi Sir Jonathan Sacks. True but markets are only a tool not a complete worldview and true markets work better than anything else.
  • Many of us can’t imagine living without the government hunch on our back. When the only medical alternative left is aggressively attacking the malignant growth, we instead feed it. Abolish the Fed, repeal income taxes with an amendment, get out of Iraq, cancel all bailouts, close federal agencies.

No comments:

Post a comment

Leave comment