18 December 2008

Crisis! Crisis! Crisis! Crisis! Crisis! Crisis! Crisis! Crisis!

Is that not the leitmotif of our age?

The sheeple act as if this calamity were caused by some strange and mysterious forces beyond comprehension and human control.

Of course, if people were actually literate in economics, all would be plainly crystal clear and obvious, and the cries of chaos in high State places would be hardly audible. Of course, if people were literate in economics, this depression would not be happening. But that's another story.

Yesterday Chrysler announced a month-long furlough of its productive capacity, with the explanation that buyers for their product are stymied by lack of credit availability, due to the "freezing" of the credit markets.

Now this is pure ignorance on the surface. Credit availability actually expanded during the last quarter. If credit is truly unavailable to erstwhile auto buyers, perhaps such a state could be traced to the simple reason that most auto buyers are inherently uncreditworthy in the first place?

Remember, during the boom the banks and financiers would lend to anything with a pulse. There were "liar loans" and "ninja loans." I'm sure you've heard of these by now.

This is how we got into this mess in the first place.

So if fewer buyers merit credit (remember, an automobile is an expensive purchase), then perhaps loan originators have returned to sanity as the grotesque effects of the Fed-sponsored monetary boom become increasingly apparent.

In any case, most folks to-day are so overextended as to be in hock through the end of the millenium. The monetary overhang created by fractional reserve banking and the moral and intellectual fallacy of fiat money has run its course, as we have reached the point where there is not enough hard cash in circulation to pay the collective interest and finance charges on the virtual wealth that exists only in digits and electronic ledgers, a hollow digital vapor backed by nothing and redeemable for nothing.

The systemic structural weaknesses of our fiat money regime are finally being exposed for what they are. Is this a crisis? Hardly. In truth, it is the first step toward the restoration of liberty. The emperor has been shown to have no clothes; the empire is exposed as backed by nothing except insipid rhetoric and blarney.

With the collapse of old failing systems, new dynamic systems take their place. The same process begat the demise of the Soviet Union. It will swallow us whole, and lead to many excess deaths. But such is the final result of the moochocracy throughout the ages. On the other side of this mess, however, it is unsure what weeds will spring through the cracks - but what weeds there are will be fertilized by freedom.

Even now the powerful cling to their declining positions even as they are cleaned out by the worst elements of their own. (Boo hoo.) Now B.O. is condemning the "greed" of those who were "responsible" for the crisis.

Look in the mirror, Golden Boy - you are referring to your scrawny self, and your power elite fellow travellers.

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