Home > Miscellaneous Musings > Counterfeiters should be shot

Counterfeiters should be shot

Funny comments from Bill Bonner of Daily Reckoning.  Funny, but, sadly, very very true.

Printing up extra money – with no backing – used to be the sort of thing only counterfeiters did. Now it is done by the central bankers and Treasury Secretaries themselves. They don’t apologize for it. They don’t hang their heads and contemplate blowing their brains out. Instead, they’re proud of it…announcing that they “saved civilization,” or some such claptrap.

It is all so amazing…it leaves us gasping for air… Everyone seems to think he knows better what people should do with their money than the people who own it. Businesses are building up liquidity, says Soros; they should invest. Consumers are paying down debt; they should spend, says Krugman.

What? They don’t want to spend or invest? Then, we’ll steal the money from them, via inflation, and make them want to get rid of it.

This makes no sense in theory. Why should people do anything with their money other than what they want to? What is an economy for, if not to serve the interests of the people in it?

But the economic busybodies think they know better. They think an economy is supposed serve them – by doing as they demand. They want it to produce full employment, consumer price increases and positive GDP numbers – all the time. And they think they can get these things by increasing the supply of notional “money.”

It is swamp gas in theory…but maybe it works in practice? But where is the evidence? When has it ever worked?

It hasn’t. It never will.

But it sure can touch off a fire-show in the market…before it blows up the economy completely.

Categories: Miscellaneous Musings
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