Sunday, October 05, 2008
"Unprecedented"
Commissar Paulson's media are still using the word "unprecedented" for the current economic situation. New territory, nobody's been here before, we don't know how to handle it, etc, etc, etc.
Nonsense. Other banana republics have been through similar situations: wild unfounded spending leading to hyperinflation. The cure is well-known: Austerity.
Argentina, Brazil and Chile have been through this at various times, and were able to regain stability by cutting off credit and revaluing the currency. Often the austerity was forced on them by American investors, by Sultan Bush himself, or the International Monetary Fund, which is basically an American outfit.
So the American government and the American investor class know how to cure this situation. They refuse to apply it to themselves. Instead, they are applying the opposite of Austerity. Expand credit, keep house prices high, keep interest low, expand gov't spending. Guaranteed to make the disease worse.
In simple terms:
The problem is spending money that doesn't exist.
Pick a solution:
A. Stop spending money that doesn't exist.
B. Spend a hell of a lot more money that doesn't exist.
Other countries have picked A, and it worked for them.
When a government picks the suicidal answer EVERY GODDAMN TIME for EIGHT GODDAMN YEARS, you are not entitled to assume incompetence. An incompetent, a mere moron, would do the right thing more than half the time, because the right thing generally follows common sense. ¶ 2:38 PM
Nonsense. Other banana republics have been through similar situations: wild unfounded spending leading to hyperinflation. The cure is well-known: Austerity.
Argentina, Brazil and Chile have been through this at various times, and were able to regain stability by cutting off credit and revaluing the currency. Often the austerity was forced on them by American investors, by Sultan Bush himself, or the International Monetary Fund, which is basically an American outfit.
So the American government and the American investor class know how to cure this situation. They refuse to apply it to themselves. Instead, they are applying the opposite of Austerity. Expand credit, keep house prices high, keep interest low, expand gov't spending. Guaranteed to make the disease worse.
In simple terms:
The problem is spending money that doesn't exist.
Pick a solution:
A. Stop spending money that doesn't exist.
B. Spend a hell of a lot more money that doesn't exist.
Other countries have picked A, and it worked for them.
When a government picks the suicidal answer EVERY GODDAMN TIME for EIGHT GODDAMN YEARS, you are not entitled to assume incompetence. An incompetent, a mere moron, would do the right thing more than half the time, because the right thing generally follows common sense. ¶ 2:38 PM
