States Visited

Thursday, January 29, 2009

Iceberg - one little piece at a time...

Here is a pretty good, short FAQ about some of the economics of our current 'situation.' Yeah, there's a lot of economic terms in there, but some good info as well.

Some more food for thought on inflation:

"The best way to destroy the capitalist system is to debauch the currency."

"The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation."
- Vladimir Lenin

And, while we are in an economics frame of mind, you really should start learning a little bit about the one man that can probably shoulder more of the blame for our entire current mess than any other.

His name is John Maynard Keynes. He died in 1946.

Here is a little quip from the wikipedia article about him.

"In late 1965 Time magazine ran a cover article with the title inspired by Milton Friedman's statement, later associated with Nixon, that "We Are All Keynesians Now". The article described the exceptionally favourable economic conditions then prevailing, and reported that "Washington's economic managers scaled these heights by their adherence to Keynes's central theme: the modern capitalist economy does not automatically work at top efficiency, but can be raised to that level by the intervention and influence of the government." "
(emphasis mine)

Does that sound familiar? It should, its almost exactly the same message coming out of Washington these days. Government is all about power and control. What government isn't going to love an economic theory that puts it in the driver's seat for almost every aspect of the lives of its citizens?

I find it interesting that the man who's economic theories are the foundation of the deficit spending monstrosity in Washington actually recoginized and wrote about the dangers.

"Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some."

"Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose."

No comments: