Overheard in passing “This drop in oil prices is going to destroy the economy”. The heads all nod and the chins wag and the coffee goes down. Members of the natural ruling party here in the west are bailing out as fast as you can say “rats”. Fair weather redistributers can’t handle the bad times and they haven’t even seen them yet. I guess they don’t want to be the bearers of cutbacks and shutdowns and hiring freezes and so on when the music stops and someone has to pay the bills of the last two terms of political promises. Maybe we can subpoena the Red Queen and hold her accountable for all the high spending under her firm entitled hand. Fat Chance!!!
Of course talk about “destroying” the economy makes about the same sense as talk about “destroying” the planet. We will still have an economy and we will still have a planet. Maybe it won’t be exactly what the policy wonks wanted it to look like but hardly “destroyed”. The economy continues and perhaps the winners and the losers change seats in time of cataclysm but we are a long way from that and the ones who always take it in the neck in the long run up to that are the ones on fixed monetized incomes, Pensioners, bond holders and the like are the true “beneficiaries” of the problems coming with “fiat” money. Of course the progressives have a solution for their suffering elderly which has already been embraced in parts of northern Europe under the euphemism of “Death with dignity” and questions about “quality of life”. Alter all we already murder several million children annually through state program support of “reproductive health”. What’s another million or so seniors who are past their productive prime and becoming a burden on society.
Oh right! We were talking about the “destroying of the economy” As FOX often says “We interrupt regular programming for some important news”. In case you missed macroeconomics 101 in first year … the “economy” is about creating money out of nothing. What do you think happens to those dollars you stashed in your savings account, (assuming you actually have a savings account or dollars to stash in it). I think they are called something like 451K or something like that – NO! wait, that was Fahrenheit 451 – wasn’t that some scientific paper about global warming? – NO! wait I know!!! that was a Michael Moore film – I am sure of it – so where were we???
Did you know money saved in banks is lent out? … Guess who is borrowing? … Or what a “bond” might be? … And have you ever wondered where all the money that goes into stock markets comes from? … Or why people flip shares, when they used to live patiently off the dividends? Deflation and inflation are twin heads on the same beast. As David Warren puts it: “The Japanese have pioneered a system in which we can enjoy both at the same time, and thus have perfect economic stasis, through generations of demographic collapse”. I remember something about a bird that flew in tighter and tighter circles until it finally flew up … well you know where that’s going. Nuff said.
I live in what is known amongst the coastal chattering classes as flyover country, you know, that part of the country where all food and energy come from. But of course we are all knuckle-dragging neanderthals clinging to our guns and religion and don’t know what’s good for us so our betters in Ottawa and Washington have to figure things out for us and tell us how we should spend our money and what is needed by the “country”. I read somewhere that “Magical Thinking” is a symptom of narcissism. Some suit in a corner office in Ottawa or Toronto or Washington or Chicago deciding what the price of grain should be to match up with some policy objective is classic “Magical Thinking”.
Personally, I “believe” in the price mechanism. We had a great wheat crop last summer. Too much wheat, price goes down. Duh! There’s more of it around than we can eat so no one wants it – “demand” is low. I agree with David Warren that the “price mechanism” is no longer working in our western economy. Nixon gave us Watergate, curse him forever for serving that one to the press, now every witless commentator has a “something”gate. But worse than that he uncoupled money from things, and linked it to “policy” instead, So now it appears that there is not one person left on the whole planet with the faintest idea how our economic system works.
Try suggesting that the drop in gas prices is not some evil conspiracy by the oil companies, but rather might have something to do with the Saudis being afraid of the Iranians … “The WHO???” Or maybe they are afraid of “frakkin’ “. So what do I know anyway. It’s always about someone being afraid of something – fear and hunger – the root of all human travail. The forecast is for “normal” temperatures for this time of year which is a complicated way of saying “sub-zero and variable”. And there is always hockey…