This topic contains 1 reply, has 2 voices, and was last updated by ROBERT B. 4 years, 10 months ago.
March 8, 2013 at 4:31 pm #17644
Reading about the state of the financial markets and the way the economies are run these days is a lesson in the strengths of “the message”. It appears that the authorities are able to push the big ship in the direction they want by the strength of their word, their spin, the confidence they are afforded by the markets and probably also, by the wishful thinking of those participating in these markets.
It’s frustrating to see the Dow and the S&P climbing to new heights, pushed by monetary stimulus. It feels unjust, It feels unjust to see the developed countries printing money like mad and not suffer the consequences. In the economies of countries that are outside the OECD (and even amongst most of the members), such an attitude would bring about disaster.
It seems unjust that the developed economies are all racing against each other to devalue their currencies and inflation doesn’t even seem to be around the corner (at least in the statistics). Even gold has not acted as it should lately. If gold had any sense of justice it would punish the currencies of developed economies by continuing to go higher
It would seem so unjust, if the current printing to infinity of the central banks in developed economies, would work. It wouldn’t be the first time that the first world succeeds in bending the rules in it’s favour though.
But this time, it’s so cut and dry. You cannot get yourself out of debt by creating more debt. You cannot strengthen your economy by creating money out of thin air. Such a strategy cannot work and if it would, in would be so unjust.
We build our strategy accordingly.
So my question is this: Is there something that we don’t see, a solution that will be taken out of the hat at the last minute? Are we blinded by our sense of justice?
I don’t think we are…
Robert BlaisMarch 11, 2013 at 4:57 pm #18041
Feeling righteous about what should be and what is “just” is a way to become frustrated and ill. Take it easy! It is good to recognize a con game, but you can’t control it. People have different interpretations about what is right, and doing the right thing. There is of course a right way. It is called natural principle, but Nature is very patient (and cruel), so men think they can play with her. That is what the insiders are doing now. They are playing on the confidence, with the emphasis on the first syllable, of people’s belief in the paper currency. The Fed has no limit to what they can “print” with a few strokes of the computer keyboard. They truly feel like masters of the universe, giddy with power. They can BUY the whole stock market, all the housing and all resources. What they can not do is make ANYTHING real. Making things is hard, requires real imagination, skill and time. For now, the insiders are extracting the money out of the system, protecting the government and the banks. That takes little skill, little imagination and only one tool: monetization. That’s the only hat trick they know, really tedious.
The Fed thinks it is doing the right thing by making “jobs” and “growing” the economy. That is their paradigm. I think it is an out of date paradigm based on cheap energy, but I am not in charge. When I am, things will be different. They have old money interests to protect so they are shooting the bullets and all we can do is jump to avoid being killed in the crossfire between the Feds and the rest of the world. The opportunism of the current value system will eventually have to answer to the justice of natural forces. When? Don’t ask me. That’s Bill’s, Chris’s and Rob’s job. We pay them. They better get it right, otherwise my sense of justice will make me give them all a good whipping (I actually think that they are doing a great job).
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