Determined to reproduce the economic successes of Weimar Germany and Zimbabwe the Federal Reserve has decided to fire up the presses once again.
Excitement ran through Wall Street today as the news of this brilliant new shot in the arm of “quantitative easing” was announced.
Well… not excitement… more like a panicked rush to buy ownership interest (stock) in companies most of us think will be around even if the economy melts down completely. You see, owning a percentage of a company cannot be devalued like the dollar. Companies can’t just print more stock thus devaluing your shares. In fact, each time the Fed turns on the presses they tax you without you knowing/understanding it. Stay with me here… if you have a dollar that has the buying power of “a dollar” then I decide to print another dollar and give it to you because I think you’re cool then you have two dollars… with the total value of “a dollar”. You just got taxed 50%! How do you feel about that? If you listen to the media, you reportedly feel pretty good. Ignorance is truly bliss…
The market going up has very little to do with a healthy U.S. but more to do with a serious concern over its illness.
Keynes, like Marx, was really smart… just really wrong. Neither individuals ideas have worked out well anywhere in the world. (If you think about it there are a great many individuals who fit this description.)
But don’t let the fact that Keynes ideas are horrible and produce long-term economic chaos discourage you!
It doesn’t discourage the Fed!
If you haven’t already, might I recommend buying some chickens? Your neighbors will love you…
I bought a still. My neighbors actually do love me.