Yes Gloria there will be deflation

I can’t believe what I am reading this morning.

The U.S. economy contracted during the last quarter of 2012 because private businesses are not investing. We have a phony economy that has become entirely dependent on fantasy FED outlays, borrowing, taxes, and federal spending on its welfare and warfare complexes. Any cuts to the artificial economy necessarily result in deflation because the real economy is not large enough to make up the difference. The real productive economy has been subsumed by the government economy.

So what do the Keynesians in both parties want to do? Instead of accepting the fact that we are on an unsustainable collision course with destiny because of our alcoholic behavior, they want to raise more taxes, print more money and spend more! Like many alcoholics they are in denial, so we should ignore them. They decry “austerity” as if it is some temporary central planning program that is tinkering with the wonderful status quo. The status quo is already a disaster.  Austerity is nothing more than the natural consequence of a failed economic philosophy that fueled irresponsible behavior for decades. Austerity is happening because there is no other choice.

Saving the economy will not be painless. Real change is never painless. There will be temporary deflation as we reestablish a healthier economic equilibrium.

Let’s stop the spending insanity. End the Keynesian alcoholic nightmare that has ruined our country.

drunk man

Advertisements

6 responses to this post.

  1. Posted by Jordan on January 31, 2013 at 7:41 am

    How do you want to save economy? By Austerity?
    Why don’t you ask Spain, Ireland, Estonia, Latvia, Portugal how austerity is saving economy?

    Is economy there to serve society or society have to serve snd support the economy?
    Please answer this question.

    Reply

    • The economy just is. It does not do anything. Your question assumes that man can make the economy do something to serve somebody. That’s why we are in the disaster we confront today.

      Reply

      • Posted by Jordan on January 31, 2013 at 10:09 am

        Yes, man can make economy do whatever social coordination decides. DId you hear about spending in WWII, did you see piramids in Egipt, did you see Roosevelt Dam, Did you see piramids in Latin America, Great Wall, Stonhenge, World Islands in S. Arabia.
        Man can do whatever they decide by social coordination.

  2. I want to save the economy by taking the hard actions now even if it means short term pain. Eventually I believe we need about a 40% cut in federal spending which will balance the budget and start to address the debt. I want to audit, then end the Federal Reserve system. I want us to reject Keynesianism as a flawed economic theory and adopt Austrian Economics going forward. I want to return to sound money – perhaps not quite a 100% gold standard but something closer to that ideal In short I see a near total course correction as necessary in order to restore psychological health and avoid economic oblivion.

    Reply

    • Posted by Jordan on January 31, 2013 at 10:06 am

      That is only your belief that economy needs to be smaller. Every case in history disproves austerity as cure for the bad economy. YOu are still thinking that USA is under gold standard. We went off gold standard in 1971. and we are not going back.
      Please accept that.

      Reply

    • Posted by Jordan on January 31, 2013 at 10:20 am

      Why is the debt major problem now? Would deficit be this high if everyone is employed? No it would not be this high.
      SO by solving employment problem you can solve deficit problem and then wait for inflation to eat up debt just as it was done after WWII.
      DO you know that no country ever reduces the nominal debt unless someone outside (IMF) commes in and force the austerity and suffering without ever solving debt or reducing it.

      So you want to do to your country what IMF was doing to third world countries instead of fixing unemployment?
      Shorthand of what you say is “I know the future and i want to prevent it by doing it.”

      You claim that you know the future: “debt is going to destroy the economy”
      Then you say: “before austerity is forced upon us i want to do austerity”

      That is: “I know the future and i want to prevent it by doing it”

      Lets reduce unemployment which will reduce debt and prove your vision of future incorrect. Only if you refuse to solve it this way it is going to come as you believe.

      That is called A prisoner dillema, or butterfly effect. I want to prevent something by ensuring that nothing is done to change it.

      Reply

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: