Saturday, March 07, 2009

Private King: The last resort

Mervyn King, the government's chief counterfeiting officer, yesterday told The Times that the last weapon in his locker, quantitative easing, would definitely work.

Well, he would say that, wouldn't he, because for him personally and for every other member of this stinking regime, it has to work!

Obviously, they give no reasons as to why quantitative easing has to work, except perhaps to rest behind the flimsy shield that it is the last thing in their locker, therefore it must be the only thing that can work. (Otherwise, we would have to conclude that the entire state-paid staffs of the Treasury and the Bank of England have no clue what they're doing, and therefore should be sacked immediately for all being hopeless incompetents.)

Keynesian shill Edmund Conway also gives it his best shot, here, but his argument paraphrases along these lines: failed to work in Japan, because it wasn't long, fast, hard, or strong will work here because we're going to make it longer, faster, harder, and stronger...
So, nothing to worry about there then.

Have any of these people thought about what's next if it doesn't work? Will it involve their sacking and their replacement by people from a different school of economics, who have half a clue as to what's really going on?

Of course it won't. When quantitative easing fails, as it surely will, all of these people will once again prove Murray Rothbard's core dictum that "Nobody Resigns!".

They will all go on taking their salaries, and they will come up with further mad cap schemes to 'make' Keynesianism work, thereby increasingly lengthening this government-induced depression. All of these schemes will further increase government power, diminish the wealth of the people, and attack liberty. None of them will 'work'.

The only thing that can 'work' is a return to a free market, with three immediate policies to be implemented before anything else is considered:

=> No more bailouts

=> Let interest rates float naturally

=> No more inflation

The longer we leave this single genuine solution, the harder the pain will be when we finally take our medicine.

What we need is, in the words of Peter Schiff, 'Tough Love'. All this endless Keynesian/Socialist government interference is going to generate is the economic basketisation of Britain and a final victory for Robert Mugabe, who with some justification is now able to claim that Gordon Brown is finally copying his policies, which brought so much wealth and happiness to Zimbabwe.

Perhaps Gordon Brown really will have to instigate a military dictatorship, 'due to extraordinary circumstances'. It may be the only way he can get out of the country unscathed, before he flies off to his cherished 'World Dictator' role at the IMF.

Though of course, considering his latest policy wheeze of flooding this country with increasingly worthless paper tickets, none of which represent real savings, he ought instead to get on a plane to join his spiritual socialist brother in Harare.

UPDATE: Half-decent Torygraph articles on the quantitative counterfeiting madness:

=> Gordon Brown's reckless ruse to make money (Simon Heffer)

=> Tories must oppose the Bank of England's mad experiment (Iain Martin)

=> Printing money: Has Mervyn King turned into Paul Daniels? (Alistair Osborne)

I look forward, with great expectation, to the forthcoming article on this by Liam Halligan.


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