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Crack whores

October 6, 2011

Cheap money = Crack cocain. Feels great at first, then you spend the rest of the night chasing that high. Until you crash.

Where the bankers are crack heads, the Govts is the crack dealer

The prescription to all that ails ya is more crack! Our Govt is the enabler. What we need is an intervention.

Your behavior has affected me negatively in the following ways:

You steal money from me.
You lie to me.
You threaten me with suicide if I don’t give you more money.
You’re manipulative
You don’t accept accountability
You used to tell me you love me.

But the US govt need to enable banks because they gave birth to the little insolvent, I mean insolent fucks… The Germans know the score…

Der Spiegel: Obama “Like A Doctor Caught Prescribing Performance-Enhancing Drugs”

Go no further than the Der Spiegel piece, Why Europe Is Right and Obama Is Wrong.

“American economists, central bankers and fiscal policy makers have reinterpreted British economist John Maynard Keynes’s clever idea that government spending is the best way to counteract a serious economic downturn — and have turned it into a permanent prescription. In their version of the Keynesian theory, declining growth or tumbling stock prices should prompt central banks to lower interest rates and governments to come to the rescue with economic stimulus programs. US economists call this “kick-starting” the economy.

Laying the Groundwork for the Next Crash
The only problem is that this method of encouraging growth has not stimulated the US economy in recent years, but in fact has put it on a crash course. From the Asian economic crisis to the Internet and subprime mortgage bubbles, economic stimulus programs by monetary and fiscal policy makers have regularly laid the groundwork for the next crash instead of encouraging sustainable growth. In the last decade, the volume of lending in the United States grew five times as fast as the real economy.
It gets better,

Cheap money created the fertilizer for the excesses of the US financial industry. Low interest rates seduced mortgage providers into talking even the homeless into taking out mortgages. And the same low rates made it easier for investment banks and hedge funds, using increasingly risky loan structures, to transform the once-leisurely insurance and bond markets into casinos.

Now the bubble has burst. This has not, however, prompted the US government to conclude that its prescriptions could have been wrong. On the contrary, now it wants to increase the dose. Obama plans to follow the largely unsuccessful 2008 economic stimulus program with a new program this year. Meanwhile, Federal Reserve Chairman Ben Bernanke says that he intends to flood the economy with cheap liquidity — for years, if necessary.
The “prescriptions could have wrong…and now it wants to increase the dose.” Sound familiar? Here’s the upshot,

The real problem, though, is a different one. The US economy doesn’t lack money. Rather, it lacks products that can compete in the global marketplace. The country has a deep trade deficit, yet the Obama administration is borrowing money at the same rate as near-bankrupt Greece.

2 Comments leave one →
  1. October 7, 2011 10:39 am

    Banks ARE the problem because they have far too much influence on policy.They don’t get preferential treatment because they’re charming. Reform campaign finance laws and get the face hugging alien off the government.

  2. October 8, 2011 6:59 am

    I wouldn’t call this any flavor of Keynesian or neoclassical even. I guess a perverse self-serving monetarist variant. Then again, what the fuck do I know?

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