The more I read this from Pater Tenebrarum, the more I am impressed with the clarity of his reasoning.....it is really a MUST read piece. Heinz often blows me away with his wisdom and stellar judgment.
Unfortunately, the statists (I no longer call them Keynesians as that label is too limiting) have won. A shame, really, but it is what it is. It will take at least five or six decades of boom/bust created by credit and monetary expansion before the statists see the light. The Germans, or some significant German minority, seem to have good sense, and there is not doubt that this is because the institutional memory of Weimar and its bloody aftermath is deep. A Germany with significant numbers of unemployed and in an economic crisis is a dangerous Germany.
I am not sure if the Austrians say this, but it seems that credit-fueled boom/bust gets progressively worse because more credit and increasing monetary expansion is the statist Rx for the bust part of the boom/bust cycle. Thus, we can look forward to increasing calamities. At the end of the day, if the statist mania for printing is not controlled, there may well be global hyperinflation. Not now or any time soon, but eventually, in 20 years or so.
As Heinz says, the statists are indeed pigs at the trough.
As Jay says, getgold. |
