Be prepared, the U.S. government’s unsustainable debt will have disastrous consequences. From Simon Black at sovereignman.com:
Tag Archives: Economic mismanagement
It would be surprising if any SLL readers were surprised to learn that governments are behind collapsing supply chains. From Doug Casey at internationalman.com:
International Man: The COVID hysteria and the shutdowns have caused supply chain disruptions. Central bankers and the media were quick to pin the blame for soaring inflation on these disruptions.
It seems like sophistry—a fallacious argument with the intention of deceiving. What is really going on here?
Doug Casey: Government officials always want to be seen as smart and action-oriented. Whenever anything untoward happens, they like to step up and pretend to be saviors.
Today’s public thinks that the government not only can but should run the world. The COVID hysteria is a custom-made excuse for them to do so. Unlike people who produce actual goods and services, however, government employees can only take other people’s property and tell them what to do.
Because the essence of government is coercion, they can solve problems only by creating more problems, and new problems provide excuses for more intervention, making the government look even more necessary.
COVID will go down in history as more than just another mass hysteria. It’s likely to be classed as an episode of mass psychosis. It’s the Salem witch trials times a million. It is even bigger than the Great Cultural Revolution in China. The public has been convinced that a dangerous—but relatively minor—virus is going to wipe out the planet, and now, on top of the virus, we have to deal with experimental vaccines, which are likely to be made mandatory, either directly or indirectly.
Vaccine mandates amount to lighting a stick of dynamite in a nitroglycerine factory. That’s true politically, economically, and perhaps medically.
Bill Bonner takes apart various idiots and idiocies. From Bonner at acting-man.com:
There must be some dark corner of Hell warming up for modern, mainstream economists. They helped bring on the worst bubble ever… with their theories of efficient markets and modern portfolio management. They failed to see it for what it was. Then, when trouble came, they made it worse. But instead of atoning in a dank cell, these same economists strut onto the stage to congratulate themselves.
“The Greatest Depression that could so easily have happened in 2009 but did not is the tribute that the world owes to economics”, wrote Arvind Subramanian in The Financial Times.
We were lost from the get-go, trying to interpret the sentence. It is as tangled and puerile as the staggering conceit behind it. Then, Mr. Subramanian sets up the stage props:
“In 2008, as the global financial crisis unfolded, the reputation of economics as a discipline and economists as useful policy practitioners seemed to be irredeemably sunk. Queen Elizabeth captured the mood when she asked pointedly why no one (in particular economists) had spotted the crisis coming. And there is no doubt that, notwithstanding the few Cassandras who had correctly prophesied gloom and doom, the profession had failed colossally…”
He then brushes off the Queen’s very sensible question:
“But crises will always happen, and even if there is a depressing periodicity to them as Professors Reinhart and Rogoff have catalogued, their timing, form, and provenance will elude prognostication.”
The Queen, here seen shortly after being apprised of Mr. Subramanian’s excuse in the FT
Photo credit: Mark Stewart
Of course, the record doesn’t show that the crisis eluded prognostication; any dope could have seen it coming. But the prognosticators who had contributed so mightily to the crisis had blinded themselves with their own claptrap. Still, Mr. Subramanian figures that they “vindicated” the profession in the way they responded to the crisis.
“On monetary policy, Bernanke was true to the word he gave to Milton Friedman on the occasion of his 90th birthday: ‘Regarding the Great Depression. You’re right, we did it. We’re very sorry. But thanks to you, we won’t do it again.’
Bernanke, the pre-eminent student of the Great Depression, found conventional and some very unconventional ways of not doing ‘it’ again. At the peak of his interventions, the U.S. Fed came to resemble the Soviet Gosbank, more a micro-allocator of credit than a steward of macroeconomic policy.”
It probably wasn’t the point he intended to make, but the Fed does resemble the Soviet era Gosbank – manipulating, meddling, and micro-managing the economy toward destruction.
To continue reading: 100 Years of Mismanagement