LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

GoldSeek.com to Launch New Website
By: GoldSeek.com

Is Gold Price Action Warning Of Imminent Monetary Collapse Part 2?
By: Hubert Moolman

Gold and Silver Are Just Getting Started
By: Frank Holmes, US Funds

Silver Makes High Wave Candle at Target – Here’s What to Expect…
By: Clive Maund

Gold Blows Through Upside Resistance - The Chase Is On
By: Avi Gilburt

U.S. Mint To Reduce Gold & Silver Eagle Production Over The Next 12-18 Months
By: Steve St. Angelo, SRSrocco Report

Gold's sharp rise throws Financial Times into an erroneous sulk
By: Chris Powell, GATA

Precious Metals Update Video: Gold's unusual strength
By: Ira Epstein

Asian Metals Market Update: July-29-2020
By: Chintan Karnani, Insignia Consultants

Gold's rise is a 'mystery' because journalism always fails to pursue it
By: Chris Powell, GATA

 
Search

GoldSeek Web

 
Did the Cream Rise to the Top - or Something Else?



-- Posted Friday, 29 October 2010 | | Source: GoldSeek.com

Economics has been called the “dismal science” for over 150 years.  This is unfair.  Outside of the Austrian school, economics, in parroting the methodology of the hard sciences, has forfeited its claim to being “scientific.” [here, here, and here] Since World War II especially, economists have been mostly apologists for government growth and propagandists for more of the same. [Also here, here, and here]

A panel of distinguished economists recently deadpanned that the recession ended in June, 2009.   And it did end, if you believe in the power of free lunches and consumption multipliers.

Just don’t count the unemployed and underemployed and people who have given up trying to get employed - or the long-employed incubating ulcers about pink slips.  Don’t get upset with the legions of college graduates who have moved back in with their parents or are waiting tables while a staggering student loan hangs over their heads.

Never mind that the world is running out of suckers to buy government debt.  Pay no attention to the decade-long rise in the price of gold, forget that Alan Greenspan told a meeting at the CFR that "Our choice is not between good and bad. It's between terrible and worse,” and that gold’s rise in price is like the dead canary in the coal mine, signaling “a problem with respect to currency markets globally,” forget that currencies will continue their plunge because new Fed policymaker Janet Yellen is yet another believer in the power of quantitative easing, that in terms of real debt the U.S. is the most insolvent nation among developed Western nations, that according to John Williams of ShadowStats.com, on the basis of Generally Accepted Accounting Principles, “total federal obligations as of September 30, 2009, stood at $70.7 trillion“ - nearly five times the GDP reported for fiscal 2009.

Never mind all this.  If we want to be part of the Establishment’s solution, we need to embrace the Keynesian belief that national politicians can create prosperity with more easing and spending.   

What might be the outcome of a continuation of government and Fed salvos?  Making it easier for people to spend money will likely get them spending money.  As retail sales pick up more temps will be hired.  GDP figures will expand, and the government will issue assurances about possible controls should prices rise too much.  The economy will flash like a hypernova, and Krugman and his Keynesian allies will glitter for awhile.

As shelf prices begin to shoot up, the government will threaten selected wealth producers about various cards it could play, none of them pleasant for such a small voting bloc.  Backstage at the local market, highly depreciated federal reserve notes will be swapped for whatever people can get their hands on.  Spending, in other words, will become a desperate act of saving.  There will be arguments in the media about whether we’re experiencing inflation or mass inflation, with general agreement that other than the usual loons, no one saw it coming because the Fed is doing what it pledged it would do, create more inflation, which is not the same as real inflation or mass inflation.

Bargain stress-relief solutions will thrive as more people feel poverty closing in on them.  Fat-cat federal spokespeople will deplore the spike in street crime.  International tensions will increase as governments continue playing beggar thy neighbor or in some cases bully thy neighbor.  The CIA might even start another war.  The usual suspects will get blamed for everything.  Throughout all this the do-something gang will be undeterred because whatever losses they might suffer are discounted by the fact that they’re still in charge.  And the “experts” who never see a crisis coming will tell us we must once again abandon free market principles to save the free market system.

What form will the abandonment take?  Whatever is politically expedient.  Americans could end up shackled to a one-world super-bank manufacturing meal tickets at will, though with everyone looking for a free lunch the meals might become indistinguishable from the tickets themselves.

Of course, none of this has to happen.

George Smith

http://barbarous-relic.blogspot.com/


-- Posted Friday, 29 October 2010 | Digg This Article | Source: GoldSeek.com




 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.