Friday, July 27, 2012

Who Will Stand for Capitalism?

Who will stand up for Capitalism is the question. We've abandoned our schools to the Keynesians and Marxists. Their policies are in use as we speak.

Dick Morris had a good take: he was saying the problem was not "recession" but "debt Implosion". Levels of debt is scaring everyone, causing banks to get liquid, businesses to hoard cash, and households to pay off debt and build savings. He quoted that Trillions are on the sidelines.

Yet Obama and Bernanke think it's just a "recession" that needs "demand stimulus" so they want to borrow and government spend even more. Problem is, it's exactly the wrong thing to do! It isn't that there's a lack of cash in the system: it is a lack of confidence! And when the morons in Washington run the debt even higher, it makes things worse!

Obama's proposal to "revive the economy" by hiring hundreds of thousands of teachers and firefighters is appalling! His absolute ignorance of how an economy works has been totally confirmed! Government jobs require constant bleeding of the more productive private sector and would actually cause the economy to contract!

In my opinion, all that a QEIII will do is drive the price of gold to $2500 at least.

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