Skip to main content

Fiat Is A Car: A Brief History Of the Beginning Of The 21st Century


We are all a bit stupid about the economy. That is because economics really is the dismal science -- except for two groups of people: Ron Paulites, along with Andrew Jackson, the natural enemies of fiat money, and George Sorosites, ambitious malefactors of great wealth who in this age of get rich quick schemes want to get even richer quicker.
Most of the rest of us fell asleep in economics class when the talk turned to inflation, deflation and fiat money.

We thought fiats were cars.

George Soros, the sugardaddy of the left best know as a short-buyer who broke the bank of England, and Austrian economist Ludwig von Mises, were wide awake in class. So was Peter Schiff, now running for the US Senate against too long-time incumbent Chris Dodd.

Von Mises, the author of “Human Action,” still the best economic book in our fragile Western world, died with empty pockets; Soros continues to rake in the dough. He will die a rich man, his mouth stuffed with dollars rather than earth, after the last trumpet blows over him.

Schiff is the economic Cassandra who warned us all, during the last heady spendthrift days of frat boy President George Bush’s administration, that we were about to crash on the unforgiving rocks of reality.

No one paid him the least mind. And as he traveled from TV station to TV station spreading his dismal message, the rest of us shooed him away and tut tutted him unmercifully.

“Economic crash? Man, wake up. Thou art living a dream. Smell the flowers. They are all around us. The economy is – how do you put it? – SOUND in its essentials.”

But Schiff was right, as such annoying people often are.



The country was reeling like a drunken sot, from economic bubble to economic bubble; and, as happens sometimes when one has drunk life to the lees, all of us finally crashed into the brick wall.

“I told you so,” said Schiff. “Save money. Produce real goods.”

Several saviors then appeared, pointing the way to heaven on earth, among them Obama the Magnificent.

“Let me help,” said President Barack Obama and proceeded to spend even more money than George the frat boy. Angels from von Mises’ Heaven whispered in his ear, “You cannot spend your way out of a mini-depression with Chinese financing.” But he paid those angels no heed. He gave’em the brush off and lent his ear, as Shakespeare would have it, to borrowers and lenders. In fact, Obama, with a sly wink at Andy Jackson, became the chief borrower in the land; he became the chief lender-in-chief.

And now we are in a funk of deficit.

Here in Connecticut, the land of steady bad habits, things are even worse. Connecticut enjoys the distinction of being first among equals in the matter of debt; per capita, we are the most debt ridden state in the country, even beating out impecunious California. Sensing courage deprivation in our legislature, Moody has now lowered our bond rating to negative; and our state legislature, dominated by arrogant spendthrift Democrats, has pledged to do nothing about spending, until we are saved by some as yet invisible god in a bucket.

If Schiff is Cassandra, mildly but insistently pressing his message on ears clotted with wax and incomprehension, hyperinflationist true believer John Williams is Jeremiah.

The underpinnings of the American economy have so deteriorated, Williams argues, that the kind of short term irreversible economic tailspin seen in the Weimar Republic is perching on our shoulders.

In his monograph, Williams quotes Friedrich Kessler, who experienced Weimer Republic hyperinflation:

"It was horrible. Horrible! Like lightning it struck. No one was prepared. You cannot imagine the rapidity with which the whole thing happened. The shelves in the grocery stores were empty. You could buy nothing with your paper money."

Nothing.

Comments

bill greene said…
Hurrahs for Schiff -- Chris Dodd has served much too long- Wasn't he and Barney Frank the ones in the House Banking Committee that kept the Fannie Mae debacle rolling with faulty mortgages? And then blamed greedy mortgage bankers ?
Anonymous said…
Bill....both parties are to blame as well as greddy bankers,brokers and the financial services industry.

Popular posts from this blog

The Blumenthal Burisma Connection

Steve Hilton , a Fox News commentator who over the weekend had connected some Burisma corruption dots, had this to say about Connecticut U.S. Senator Dick Blumenthal’s association with the tangled knot of corruption in Ukraine: “We cross-referenced the Senate co-sponsors of Ed Markey's Ukraine gas bill with the list of Democrats whom Burisma lobbyist, David Leiter, routinely gave money to and found another one -- one of the most sanctimonious of them all, actually -- Sen. Richard Blumenthal."

Obamagod!

My guess is that Barack Obama is a bit too modest to consider himself a Christ figure , but artist will be artists. And over at “ To Wit ,” a blog run by professional blogger, journalist, radio commentator and ex-Hartford Courant religious writer Colin McEnroe, chocolateers will be chocolateers. Nice to have all this attention paid to Christ so near to Easter.

Did Chris Murphy Engage in Private Diplomacy?

Murphy after Zarif blowup -- Getty Images Connecticut U.S. Senator Chris Murphy, up for reelection this year, had “a secret meeting with Iranian Foreign Minister Mohammad Javad Zarif during the Munich Security Conference” in February 2020, according to a posting written by Mollie Hemingway , the Editor-in-Chief of The Federalist. Was Murphy commissioned by proper authorities to participate in the meeting, or was he freelancing? If the former, there is no problem. If the latter, Murphy was courting political disaster. “Such a meeting,” Hemingway wrote at the time, “would mean Murphy had done the type of secret coordination with foreign leaders to potentially undermine the U.S. government that he accused Trump officials of doing as they prepared for Trump’s administration. In February 2017, Murphy demanded investigations of National Security Advisor Mike Flynn because he had a phone call with his counterpart-to-be in Russia. “’Any effort to undermine our nation’s foreign policy – e