Then you don't know much about Mises and Hayek and Austrian economics. They don't believe much in government intervention in free market solutions. The free market allows for the debtor and lender to work out whatever deal they need to work out. When lenders don't believe they will ever be bailed out by governments, then they are one hell of a lot more careful who they lend to and at what interest rates. And when they make a series of bad bets, like to Greece, that become unpayable, then debtors will engage in a negotiation to extract as much as possible while avoiding default. That almost always results in the lender taking a haircut, as the debtor avails himself of bankruptcy, and the debt and finances of the debtor are resolved in an orderly manner. Lenders would rather have 50 cents on the dollar than nothing at all. These haircuts allow the debtor to get their finances in order and have a chance to grow their way out of their prior irresponsibility. And this interaction allow rates to float to the level that prices in the risk of lending to that bad debtor, so future lenders are getting paid for the risk they are taking, without anyone harming innocent 3rd parties, like us hard working tax paying citizens who aren't involved in those transactions.
That's how things work in the free market. In the Keynesian, Socialist, Communist model, the government usurps the power of the people and decides that they will be irresponsible with the people's money, lending money to people who can't pay it back and bailing out with printed dollars people who have been criminally negligent with their shareholder's money. Keynesian governments are a tool of Socialists and Communists to rape the people of their hard earned dollars. Need proof? $4.5 trillion in Fed QE printed money and $18 trillion in US debt, thanks to Keynesian, Socialist, Communist economics.
The Communists and Socialists didn't win the WW2 or the cold war, but through Keynes they have implemented a backdoor destruction of first capitalism and more insidiously Democracy. With Greece, we saw that Democracy doesn't count for shit. The government did what Europe wanted, not what the Greeks very visibly voted for. Here in the US, we already have the infrastructure of Tyranny in place with the Patriot Act and the FISA laws allowing for the wholesale destruction of our Constitutional Bill of Rights and a Congress who has allowed a Communistic central planner in the form of the Fed to usurp it's duties to safeguard our currency as a store of the value of the people's wealth.
In short, we're fucked. Congratulations, Ted. You won. You got everything you wanted and it turns out to be a stinking pile of shit. |
