Thursday, January 29, 2009

the underwriters

For decades central banks set monetary policy according to nonsensical beliefs about credit expansion. The inability of the Fed to stop the current crisis via emergency lending to banks demonstrates that Fed policies are a failure. This movie reveals the scale of this disaster.

we've never fully paid back "to ourselves" (1) what we have borrowed "from ourselves" (2) via the fed. too much borrowing, of course, creates bubbles, which pop, which is then and only then viewed as a "crisis" or "problem." to solve that "problem" with government and the fed, more borrowing takes place. to solve it with the free-market, large corporations are allowed to fail. the latter method has been effectively used once in US history, but the recession it corrected is not in the history books.

the true "end of history," in economic terms, would therefore be the point at which we no longer create problems for "ourselves" (2) and then use government to solve them. it has nothing to do with the reality of scarcity, but instead our reaction to scarcity. a true "end of history," across the board, would therefore be the point at which we no longer create problems for ourselves at all.

it has nothing to do with reality, but instead our reaction to reality.

a hypothesis worth investigating.

this video is an ad for a website, but it will give you an idea of the magnitude of the solution to our existing crisis. it will also give you an idea of the magnitude of the next crisis which this "solution" will cause.



it should only cost them a few million to build the camps. it should only cost them a few more million to staff and operate them for long enough to flee, at which point...

well.

they'll write history.

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