Wednesday, October 08, 2008
The ultimate answer is not 42
No, the ultimate answer is "we need a greater injection of liquidity". Check out these questions, as asked of Ben Bernanke recently, and let's see what his answers were:
(Q1) What do you do if the economy slows down? (A1) We need a greater injection of liquidity
(Q2) What do you do if the economy overheats? (A2) We need a greater injection of liquidity
(Q5) What do you do, Mr Bernanke, if the cerebrospinal fluid in your brain cavity is beginning to decrease in pressure due to your lack of sleep caused by your utter incompetence and fecklessness? (A5) We need a greater injection of liquidity
You see, the answer always fits. No matter what the problem, the answer is always to counterfeit a few billion dollars more. And so, when we are in the middle of the greatest financial crisis since 1929, which even Mrs Miggins in her pie shop knows was caused by too much "liquidity" (a.k.a. counterfeiting) created by "The Undertaker", Alan Greenspan, the answer is to "increase liquidity".
The gangsters and banksters who run the nascent socialist/fascist world state must think we're a bunch of muppets if they think we're going to fall for this ongoing nonsense. I think even Mrs Miggins is beginning to realise that the Emperor really is wearing no clothes.
But where are the American revolutionaries to kick the Emperor off his throne? Alas, I fear a decade or two of state centralisation and increasing repression will be needed before such men and women are driven forward. However, in the meantime, I think it is fairly clear that the intellectual high ground occupied for nearly a century by the Keynesians and the central bankers, has at last been ceded. They are all obviously a bunch of panicking idiots who have no clue what they're doing, no idea of the unforeseen consequences they are stimulating, and absolutely no Plan B to fall back on, aside from the gun and the gulag, if Plan A fails (as it surely will).
And so now it is the time for the Austrians to take that ceded ideological ground. Our ultimate victory will then simply be a matter of time, and the number of professors the Ludwig von Mises institute can massage into the economics chairs of the world's major universities, to help destroy the breeding grounds of the Keynesian socialists. Yes, it's a long play. But ultimately I think the only play that can work. Let's take on the Gramscian/Fabian marxists at their own game. The truth will out. Eventually.