The entire NYT Editorial Board and therefore the rest of the MSM has taken the baton on the Banker Bonus Bailout Bonanza, so thankfully we are done there. Here's what's next:
Total meltdown.
Hello Barry. The stimulus bill is a complete disaster, too small, yet pork-laden. Welcome to Washington.
Also Barack, I think the idea going forward is to appoint outsiders to all cabinet posts, outsiders that pay taxes. There is nothing gained by having the Washington-Wall Street Axis-of-Evil types on your staff.
Much more importantly though, you are completely inside the box with your economic advisors.
There are two distinct schools of economic thought regarding macro policy, yet you only have one viewpoint represented, ad infinitum.
I expected better of you. I know you are open and connected so please hear this:
The Keynesian school of which all your guys subscribe says monetary activism, i.e. the relentless printing of money (fiat currency, mind you) can control and soften the business cycle.
But there is another school, a more practical, and even yogic school, called the Austrian School.
It is called the Austrian School because it was formulated by Arnold Schwarzenegger. . .
No, that last statement is completely false.
The Austrian School says that cycles, namely the business cycle is inevitable like the seasons, the ebb and flow of life so to speak. We collectively get excessively greedy, in this case an easy credit 25 year bull market, and then the bubble bursts and we become excessively fearful -a process only a few months old.
And the Austrian School says that we need the shake-out, we need the dislocation, we need the pain, to be able to make the eventual transition from fear to hope. When we try to deny the pain by pumping money into the system, we simply prolong the disease.
In other words, the Austrian School says that by intervening in the seasons, we just prolong the Winter.
But, here's what's worse, even the Keynesians like Bernanke and Krugman believe this stimulus will be too small anyway. . .
So, a gentle "What the fuck?' may be in order.
And, I'm not even sure Keynes would support what we are doing right now. Here's why. In Keynes time, we were savers, and our country produced tangible goods that other countries bought. Today, everyone is in deep debt, and our best export is incredibly bad financial advice.
So in Keynes'day, we had much to back up our debts and currency. Today, nothing but air and obesity food product, so there is an absolute danger in printing money like this.
This is not a case of just throwing the kitchen sink at the problem, and saying, "Hey, well we did our best." and walking away knowing that the cycle will eventually reverse anyway.
This is gonna make things so much worse because we will have no way to pay this bill, other than to continue printing money, which could lead to, no joke, the break-up of the Union. In fact, if we do not reverse course, this will happen.
Maybe this is for the best.
More to cover, next post.
