Enter the Welfare state of economic, social and political castaways to an island of the dysfunctional.
There are two archetypes for island's inhabitants; the Neurotic and the Character Disorder.
The Neurotic believes he is to blame and takes sole responsibility for his circumstance.
The Character Disorder, who seeks to blame everything and everyone on circumstance other than their own self image.
Simply put, pointing the finger everywhere is the same as pointing it nowhere.
Perhaps the dismal scientists need to observe a very modern phenomena; that of goldmoney.com whereby Gresham's Law is the order in play. Bad money drives out the Good and the Good money is hoarded and NOT exchanged.
This could become the order of the day for Crude Oil: A Petro money or some variant as it were.
I've often wondered why deflation in a FIAT exchange environment doesn't somehow apply to Ricardo's law albeit in reverse and it remains the pivotal juncture for my thesis... Deflation is not a pure Monetary phenomenon.
It is certainly possible were we to introduce the concept of Value, but then again this effort requires 'judgments' to be made that are generally untenable to present economic theorists beyond the propensity to reinforce their own theory.
Instead, the dismal scientists seek to perpetuate the fraudulent and static belief systems ingrained through years of fallacious programming, some might consider this higher education.
Voluntary exchange never occurs unless each party thinks it advances its own interests. Even the Ivory Tower plebes must concur with this simple fact.
Of course the privilege of Seignorage, absent of Real Bills and a Gold / Bimetallic standard is unlikely to advance anyone's interests but the Privileged first abuser.
Dismal Scientists, you have a great deal of explaining to do.
These assumptions can no longer be dismissed as trivial, but met head on with reason. All costs must be accounted for and no longer dismissed.
I don't possibly see how Deflation can be assumed to be a pure Monetary phenomenon under this environment, No, not at all.
In fact, if labor rates converge and I believe they will, the dismal scientists are going to need to stop recanting their data and trying to force it to fit their flawed models.
The sane observer cannot cite on one hand the economic dislocations and support Central Banking as a potential panacea. This amorphous argument is simply fraudulent on all counts.
Take China by example, at 26 cents per hour of labor, the average laboring citizen of the United States is going to have to accept a convergence of labor rates.
Production of goods and services inevitably become less efficient here at home barring tariff and non-tariff barriers to entry. The prices of goods or services rise higher than they could be, and the standard of living of the general public suffer as wage rates fall into balance.
We are standing on the edge of an economic chasm, but the vast majority of Americans are far too McApathetic to even so much as glance at the facts, believing somehow 'they' will sort this mess out for them.
We're going to control this with short term interest rates and monetary policy?
Unlikely at best, but it's good to dream, I just hope you don't have one of those hideous bouts of insomnia, like I've been enjoying lately.
NOLA should have made it crystal clear to anyone who bothered to watch, YOU ARE ON YOUR OWN. Jim Puplava shared reality with viewers during Financial Sense News hour's 3rd hour. It is certainly worth a listen and a look.
President Hugo Chavez (My favorite Marxist Dictator), whose country is the world's fifth-largest oil exporter, had the common sense to come clean and resound the iceberg ahead.
Chavez warned the world is facing an unprecedented energy crisis, one that will continue to compound; "not because we the producers want it but because we are running out of oil."
In singling out the United States as the most wasteful country, he was surprised to see a quarter of all the cars he counted Thursday morning on New York streets had one person aboard:
"That's crazy, one person with a huge car ... that is using up gas and polluting the atmosphere," he said at a news conference. "The world cannot tolerate this model of development called the American way of life."
Under Chavez, Venezuela will begin selling up to 190,000 barrels of fuel a day to Caribbean Nations, offering favorable financing while shipping fuel directly to each Nation State in order to reduce costs.
This gesture of benevolence is expected to help those countries save millions of dollars.
As the rest of the Globe moves towards value in the form of petro and commodity based currencies, we manage to offer our promise to pay with vastly inflated assets heavily levered to debt and a wink to those who depend upon our malignant ways...
As long as you're paying, we'll be playing.
I suspect the jig is about up.