Tuesday, April 07, 2009

Alice in Wonderland: Obam-Econ Explained

“There is no use trying,” said Alice; “one can’t believe impossible things.”

“I dare say you haven’t had much practice,” said the Queen. “When I was your age, I always did it for half an hour a day. Why, sometimes I’ve believed as many as six impossible things before breakfast.”

Obama appears to have had more practice than even the Queen.

Obama Logic

Or, as Thomas Sowell put it, politics is not about facts. It is about what politicians can get people to believe".


Hat tip: Patriot Post

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7 comments:

Ron Russell said...

No doubt about it Barry Hussein Obama is indeed, a Keynesian Social. Not in the European sense, but more like that of his distance cousin Robert Mugabe. Does this sound far-fetched to you. Think about the years this so-called intelligent man sat in the pews at Rev. Wright's church listening to him spew hate and radical socialism. I think the young man learned well.

Henrik R Clausen said...

If only he was taking out the money in the first place. That would make things much more obvious, and revolt from the directly impoverished likely.

Now, instead the O government choses to borrow. From whom? Pension funds and the like, where people place their hard-earned money in order to have a nice retirement. And from the Chinese, who are extending the credit in order that they can still sell goods to us. And from the Arabs, who have no idea how to use the money they made from pumping oil.

Now, what happens if (when) the US is forced to default on its debt? All of these will be robbed a substantial part of their honestly earned money. Our parents, who have worked hard during their lives to at least have a pleasent retirement, will be cheated. The Chinese will be pissed. And the Arabs - just how may they react? Not favorably, I assume.

What also takes place is that the amount of money is expanded. It used to be a natural thing, based on new technologies and new productive undertakings being initiated.

Since 2001, it has been an unnatural thing, the extremely low interest rates, which has encouraged reckless behaviour from home owners, mortgage firms and banks.

Since 2008, it has been downright poisonous undertakings, in the form of producing money that has absolutely no basis in the economy, but which is supposed to 'bail out' banks and 'stimulate' the economy at large.

What happens when you give more money to the banks? They become more powerful. I don't think that's good.

What happens when you stimulate an already indebted economy? Activity goes up, spending goes up, and the deficits redouble.

This is putting our entire monetary system at risk.

Henrik R Clausen said...

Keynes, BTW, is probably rotating in his grave over the misuse of what he considered sensible economical theory. I don't, but that's another matter. What we're seeing now is a complete vulgarization of what he originally envisioned.

One reason I don't consider his theories sound is that it, in contrast with the Austrian School, failed to predict the current mess.

Czechmade said...

Fortunately or unfortunately "wir sind das Volk", we are THE people.

Educated or uneducated. I find it OK.

babs said...

Buy gold and lithium (for batteries.)
BTW, can anyone explain to me why it is that only sometimes I am able to receive an email response to my comment and why sometimes that option is not available?

gxm said...

Ah yes, there is nothing like good old third world banana republic economic policies. It builds character through penury, misery, social chaos, malnutrition, and premature death.

Ron Russell said...

If Obama's current economic team continues down the road they have started---the road to more and more government spending then the end result will invariably be run-a-way inflation. They will then find themselves in a bind and the reaction will be, at that time, to enact wage and price controls. This is the socialist way. The price controls will either be artifically high or low. If they are set to low the result will be shortages and if too high the result will be surpluses. The economic planners will in the end lose control as they have always done. The economy in the United States is to vast and complicated for the government to even attempt to manage. Just not possible.