Thursday, September 15, 2011

Rebuilding a House of Cards on a Foundation of Sand

Well, what can you do but mix metaphors in a world where stuff like this happens?

The ECB is loaning dollars (debited from presumed future taxpayers of the stagflating US) to bankrupt European banks and governments, and news of this is "offsetting concern...unemployment is worsening" ?
U.S. stocks rose for a fourth day as the European Central Bank and international policy makers coordinated to lend dollars to banks to tame the credit crisis, offsetting concern spurred by signs unemployment is worsening.
We have no doubt that America was once able to shoulder such a burden successfully. But that was the America that manufactured, exported, employed and educated. That was the America your president is running around apologizing for. That is not today's America -- troubled by (leftist) social unrest, racial strife, record unemployment, debt and deficit levels; not the America where schoolchildren have to pass through metal detectors, lest they bring Uzi's to school and shoot their classmates dead, etc.

We said it before, we'll say it again: these maneuvers are not solutions. Any "relief" will be temporary. The only way to counter the evaporation of trillions of dollars in wealth is to create wealth, that is certainly not happening in the US or Europe at the moment, on a net basis.

These policypushers can't buy a good idea, and their "solutions" are only deepening the problem. They will be forced to come up with a grand plan, a whole new game, and that game will be a Global Fed, a Global Currency, and an entirely new regime of inflation to create the illusion of wealth like that which has held the current generation in its spell for as long as it's been alive. This is what politicians specialize in. We don't know how long it will take for things to get desperate enough to finally usher this is, but we know it's coming.


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