February 17, 2009
(Looney Tunes, DC) - The gloves are off and the Progressive BS grinders are
hard at work, justifying this travesty of profligacy called a "stimulus plan." Sooner
or later, though, someone is going to note that there is a vast chasm of nothingness
which supports the US Dollar.
Imagine, just for a moment, that John Maynard Keynes was right - that the economy
is a stable state creature in which money neither grows nor reduces. Progressives
purport to be big Keynesians. The problem is that Keynes predicts inflation of
this magnitude is very, very bad.
In a scholarly paper, written in 1981 by Alan C. Stockman for the Journal of Monetary
Economics, the economist shows with mathematical precision that in a stable
state economy, inflation acts as an anonymous tax on private citizens and removes
equal amounts of cash for equal amounts of inflation. Stockman's argument fails,
though, when he tries to assert that additional investment will fix this - the money
has nowhere from which to be invested without increasing inflation. The result is,
instead, stagflation, which proved Stockman's mistake. And most of America rejected the
argument, as they had just suffered through stagflation under Jimmy Carter, which,
eventually, helped to brand the hapless president as the worst in American History.
Moderates, conservatives, and libertarians know, today, that there is no such thing
as a stable-state economy. Money can grow under the right stimulus. But they
do agree that inflation is a shadow tax. The awful truth is, that to grow out of
the inflation that has been imposed by the trillions being and to be spent by the
seriously deluded people in the Nation's capitol, will take a growth rate which has been
unheard of in the history of mankind - 20%-30% each year over 10 years WITHOUT
INFLATION - this is not an exaggeration.
And to make things worse, that growth will have to happen not only with the shadow
tax from the previous inflation, but also from newly imposed taxes that will surely
come from the throne of the kings of covetousness - the Progressive-strangled congress.
And the current President wants to solve these problems with committees (!)
Silver is becoming more and more attractive as an end-game strategy for those
who don't want to walk the streets with empty eyes and bellies.
- Dick Anderson
