But wait: doesn’t this merely create an illusion of prosperity? Isn’t this central bank financial market manipulation undermining the integrity and foundation of the money markets? And have these central bank policies screwed the worker? Are we dumb enough to believe money manipulation will solve the basic structural problems that confront our national economies? And what happens when we suddenly discover money manipulation is no longer able to prevent our collective economies from collapsing?
Financial assets have grown into huge bubbles of ever increasing fake value. It is inevitable. They will deflate very quickly. Isn’t it obvious a combination of blind (ignorant) ideology, and an endemic paralysis of political will, prevent our political systems from dealing with economic reality? Are the “rich” hording as much cash as they can in order to save themselves from the inevitable financial panic of failed central bank policies.
Paul Samuelson’s belief that an economy can be kept at close to full employment through the skillful use of monetary policy assumes the institutions of government have both the intelligence and the moral integrity to do so.
They obviously do not.
Samuelson’s thesis also ignores the effect of endemic (and frequently bloody) cultural conflict, government policy based on a blind obedience to ignorant ideology, the overwhelming lust for political power, deteriorating cultural mores, the declining availability of cheap energy, or the loss of national sovereignty.
Thus we can conclude Samuelson is wrong. His thesis only works in a perfect international economy. Are we dumb enough to believe we live in a perfect world where bankers can manipulate the outcome of social change, the declining availability of cheap natural resources, and the stress of overpopulation.
And there is more. Central banks have lost control over the complex relationship between employment, wages, inflation, and growth. Liberal politicians have successfully replaced economic common sense with air-headed ideology. We are moving toward socialist fascist forms of “democracy”. Democrats routinely use environmental regulation, financial regulation, and government agency oppression to enforce their ideological objectives.
And make everyone – except political insiders – poor.
The wealth of a nation is created by its people. But American democrats are deliberately encouraging unemployment. Americans are being taught how to “enjoy” a lower standard of living. Being poor is not only socially acceptable, failure to succeed is even encouraged. By this strategy, the democrats are creating a sub-class of indolent welfare dependent people who are effectively wards of the State. If the people are discouraged, and even prohibited, from creating wealth, then the wealth of a nation declines.
Just look at what has happened in Cuba.
Western central banks have backed themselves into a policy of failure. There is no escape. There isn’t enough credit to support the debt load that governments have incurred. The routine and excessive use of welfare to support national political agendas is unsustainable. When the debt bubble breaks, the only way to sustain order will be to enslave the welfare class using the tools of oppression. Do we really think they will be happy?
Government is manipulating the markets. This cocktail circuit thesis will work just fine until one stark cold day investors lose confidence in the Central Bank narrative.
What comes next.
Existing governments are trapped by their web of special interest connections and rigid ideology. The proletariat will listen to any alternative voice that promises economic and personal security.