Friday, October 16, 2009
Learning Economic lessons the Hard way
Obviously we haven’t learned our lessons from the many market bubbles created in our past by the Feds Loose monetary policies. We are once again trying to prop up various failing markets and reward those in the market who acted irresponsibly with the very same poisons that caused the economic turmoil to begin with. The only way we can get back to any sense of equilibrium in the market is by removing the government from the equation and allowing deflation to take place. Then the real market bottom can be found. Prices will then meet real market demand thats based on savings and personal productive efforts and not inflationary money creation out of thin air. Then the malinvestments can be cleared from the market and production can resume based upon real capital formation. Capital and labor can then be redirected by the market into their most productive and profitable ends. We don't need government central planners and social engineers to further worsen the situation with yet more governmental interventions. We need our liberties and the free market (not Crony Capitalism) now more than ever. We need to get back to the Constitution and heed the advice of the founders when they advised against having a central bank. They warned us about the evils of inflation and how destructive it would be to this great Republic and our personal liberties.