Saturday, December 27, 2008

Wall Street Journal Makes Sense (for once)

This editorial is perhaps the best and most concise summary as to why Keynsian BushObamanomics will continue to create economic hardship, and this short article also serves as a well-written primer on free market economics (the Austrian School).

Amazingly, the mainstream Wall Street Journal printed it. The sad part is that almost without exception, members of the outgoing and incoming administrations, Congress, the Fed, and the Treasury Department will ignore it, or stare at it like a cow looking at a new barn door (to borrow a phrase from Luther).

Does anyone in Washington remember the age-old adages like "There is no such thing as a free lunch," "Money doesn't grow on trees," and "You can't rob Peter to pay Paul."? And where are all the "conservatives" that supposedly exist in the Republican Party?

Instead of actually addressing the problem with unpopular effective solutions, we will see the mainstream Republicans and Democrats continue to try to nationalize, stimulate, tax, spend, borrow, print, tweak, bomb, make-work, and confiscate deadbeat, bankrupt America out of the debt-hole.

Eventually, it will come down to this: "Pay your bills!" Hopefully, America and its intellectually-challenged federal government will stop believing in the Myth of the Omnipotent State and the Philosopher's Stone before we turn into a third world country. It can happen here. History is replete with examples of Humpty-Dumptys protesting that they are "too big to fall" even as horses and men are helpless to put the yolk back inside the broken shell. One way or another, we will have to work our way out of this mess - or we will fall like Rome and watch helplessly as our economy becomes like Zimbabwe's.

It might be a good idea to keep an eye on the U.S. Dollar Index and the price of gold. Barring a miracle (like President Elect Obama reading this WSJ article, doing a lot of research, and becoming an advocate of the free market), the U.S. Dollar is destined for destruction.

Can it come back after such a fell? I guess that depends on how well we learn our lessons and revert back to common sense.

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