Now that Powell has amazingly turned OFF the counterfeit, I looked back at the start. I wrote a sequence of pieces in Sept 2008, trying to organize my thoughts about the theft, and concluding with a major essay. Recounting the sequence…
In this piece I outlined the Sharia and Soviet alternatives to capitalism, but at that point I didn’t yet realize that I was talking about Sharia and Soviet. I was still phaselocked into 9/11 anti-Islam because I hadn’t yet thrown out the TV.
In this piece I compared FDR’s handling of bank failures (clean up the bad banks) with Bush’s handling (reward the bad banks.)
In this piece I caught onto the distinction between Real Value (tanh) and Fake Value (exp). The math came later.
In this piece I was kicking back at the idiots who want us to “vote” and “hold politicians accountable”. The Mach came later.
And here is the keynote, which I’ll reprint now. It doesn’t include any bad assumptions, so it has aged well.
= = = = = START REPRINT:
Listening to CNN….. Allegedly the reason why we “urgently need” this 700 billion dollar theft is to “keep lending liquid”, to “prevent a freeze on all borrowing”. CNN (to its credit) mentions at the same time that even without the largest theft in history, lending is in fact NOT frozen, companies appear to be running.
Here are the facts, which the alleged “experts” can’t or won’t say:
WE ARE IN THIS MESS BECAUSE OF WILD UNCONTROLLED LENDING.
IF LENDING COOLS DOWN DRASTICALLY, THAT IS A GOOD THING.
Same with house prices. The biggest thieves in history, Shotgun Paulson and Bugsy Bernanke, are telling us that we need to keep house prices high.
WE ARE IN THIS MESS BECAUSE HOUSE PRICES WERE ARTIFICIALLY INFLATED.
IF HOUSE PRICES DROP TO MORE REALISTIC NUMBERS, THAT IS A GOOD THING.
And yet again, at the deepest level, with interest rates. The experts tell us that we need more liquidity in order to keep interest rates down.
WE ARE IN THIS MESS, ABOVE ALL, BECAUSE THE FED HAS PLACED PRICE CONTROLS ON INTEREST. WE ARE SEEING PRECISELY THE WELL-KNOWN AND CLASSIC RESULTS OF PRICE CONTROL: PANIC, SHORTAGE, MISALLOCATION.
IF INTEREST RATES RISE TO MORE REALISTIC NUMBERS, THERE WILL BE MORE CAPITAL AVAILABLE FOR NECESSARY BORROWING, AND THERE WILL BE MUCH LESS FRIVOLOUS BORROWING.
None of the great experts have managed to reach these grotesquely obvious conclusions, therefore either (1) the great experts are retarded dimwits or (2) the great experts are paid participants in the Great Nation Robbery. Since the great experts have shown considerable intelligence in other areas, the only valid conclusion is (2).
= = = = = END REPRINT.
Polistra's Mill 