Thursday, March 26, 2009

About That Dead Cat Bounce

It ain't so bouncy. It might be the last time the defunct feline ever gets that much altitude again for a long time. The guffamint spent most of it's remaining energy trying to fake a rally but looks like the rubes have been burned so many times they've actually begun to shun the shylocks telling them it's all going to be okay.

Economics hasn't changed in 400 years. It will never change if we are talking about transactions between bipedal hominid types. The basic rules of economics will never alter and it doesn't matter what sort of consensus you get to the contrary. Fiat currency doesn't work, trying to spend your way out of a credit collapse when that's how you got into it to begin with is stupid and all debts will always be collected or repaid before credit becomes available again.

All your life there will be men who will tell you these rules don't apply to them. What they mean to say is sanity doesn't apply to them. These rules still do. All men are filthy rags before God, the ones with some modicum of dignity know it and the completely useless ones don't. The man who tells you that you can beat the system if you trust him is actually out to beat you, not the system.

Almost every person who has claimed innovation in economics ideas since the previous half-century is in fact a prevert who doesn't even understand the existing ideas, much less know how to improve on them. The best way to get ahead in a fiat currency government is to go nuts and tell them what they want to hear, which is that fiat currency works because X=y*GNP/Revenues+Consumption*Savings=Fiat currency works. Learn how to write bogus formulas like that one and you could make a nice living between 1945 and 2005, despite the fact you didn't know a damn thing about economics.


sumptos devil s advocate said...

CadorBolin said...

Or as Keynes would say, "The best way to destroy the capitalist system is to debauch the currency,” said Lord Keynes."