03 April 2015
Notwithstanding Bernanke’s spurious claim that the Fed has to “set the short-term rate somewhere”, the reserve system designed by Congressman Glass was authorized to do no such thing. It had no target for the Federal funds rate; no remit to engage in open market buying and selling of securities; and, indeed, no authority to own or discount government bonds and bills at all."Central Banking Refuted In One Blog—–Thanks Ben!" By David Stockman, Stockman's Corner, 4/3/15.
The economy is way too complex to be amenable to manipulation by fallible humans and, says Smith, more to the point, the Fed is interfering with the operation of natural – and healthy – corrections in any economy. At some point inefficiencies and bad managerial and investment choices (think Solyndra) have to be penalized and serve as object lessons.
Smith makes the analogy to forest mismanagement where fires are prevented from consuming small amounts of dead combustible material per unmanaged, chaotic, natural – and ultimately beneficial – processes. This suppression of natural correction leads to needlessly destructive more massive conflagrations.
Smith also discusses how the stock market is acting like a dangerously high blood pressure reading of a patient who refuses to address his unhealthy life choices. The Fed's use of "quantitative easing" and a zero interest rate policy (ZIRP) are equivalent to a doctor's use of powerful drugs that target only the symptom of the patient's bad choices, namely, the high blood pressure reading.
This is wrongheaded if you are besotted with the progressive idea that humans can master complex systems.
But . . . if you believe that advanced degrees don't confer anything but a surface understanding of reality, and that that "through a glass darkly" deal is a good summary of human efforts to advance in the general direction of what might loosely be called wisdom, you have to fear the inevitable return of Reality. It has an annoying habit of seeping through window cracks and locked (mental) doors. More accurately, it has an annoying habit of crashing through the living room window like an 18-wheeler with no brakes.
We should all feel a deep, gnawing dread about what we are witnessing at the Fed – and throughout society – to forestall or delay healthy correction.
Mr. Wile E. Coyote always woke up at some point but it was never when he was in a good place.
 "The Inevitable Failure of Mechanistic Monetary Policy." By Charles Hugh Smith, Of Two Minds, 4/3/15.
So much going on, but so much of it the same thing over and over that at times I simply don't have the energy to state the obvious: America and the West are governed by an "elite" with a world view full of delusions and malice. The "elite" either is so deluded about the nature of the world, or so full of malevolence towards Western Civilization that, to paraphrase an "elite" darling and Presidential hopeful, "What difference, at this point, does it make?" The result is the same: disaster.As one of the more useful principle of political analysis today goes: If our political elites in the West did hate their own countries, their own people, capitalism, and their own civilization, what would they do differently from what they are doing now?
If you ever wondered what sort of dystopian future could and would befall the world without the civilizing influence of the West, wonder no more. We have arrived. This is the post-America and the post-West world once found in fanciful fiction, and now in the grim reality of daily news.
 "The Delusions and Malevolence of Our "Elite" Class." By W. Lewis Amselem, The DiploMad 2.0, 3/23/15.
01 April 2015
Enlisted in '85. Talk about a different world. '99 seems like a Leftist dystopia compared to '85. And '99 also seems like a right-wing paradise compared to 2015.Comment by GhostOfJefferson on "Coming Home From The War On Terror." By Simon Wolfe, Return of Kings, 3/31/15.
31 March 2015
Those tolerant Muslims of Granada in 1066 killed as many Jews in one day as the Spanish Inquisition did in its 3 centuries of existence.Spanish Inquisition: 1478-1834.
 "Bad Ideas Breed Bad Foreign Policy." By Bruce Thornton, Frontpage Mag, 3/4/15.
26 March 2015
A former senior propagandist, Jang Jin-Sun, defected to South Korea and told the documentary’s producers, “In North Korea they promote the leader to be the sun. If you go too close you burn, if you go too far you freeze to death.”
Blacks similarly think that a leftist victory will mean their emancipation from the hated white man but never stop to consider what radical leftist white men will do to them when they no longer have any need for their votes.
 "The Dangers Of Exposing North Korea’s Secrets. A documentary's chilling tale -- in front of the camera, and behind it." By Bethany Mandel, The Federalist, 1/17/15.
H/t: what-when-how for image.