Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Economic Austerity or Stimulus Without Significant Reform Is Madness

Economics / Market Regulation Jul 11, 2010 - 01:52 PM GMT

By: Jesse

Economics

The economy will not 'cure itself' through benign neglect and liquidationism, because it did not get this way by itself. It did not suffer an accident, or an act of God. This is an unfortunate application of the principle of human healing after an injury to the economy.


The market was warped and distorted for many, many years by the neo-liberal forces of crony capitalism. It does not have the natural forces and efficiency for self-organization, and certainly not for self-repair. It is a man-made thing, and requires intelligence and hard work.

To say that the economy can somehow heal itself now is nothing more than an extension of the efficient markets hypothesis. The market will repair itself and get back on the road to recovery if only we will leave it alone, get the government out of the way, and allow the natural goodness and efficiency of traders to flourish, while handing out some additiontal and unnecessary pain to the victims.

To suggest that by subjecting the economy to harsh austerity measures, but without changing the abuses that caused it to become distorted and unstable with a bloated and intrusive financial sector, and then crash in the first place, is merely to hasten the final collapse, and the tearing of the fabric of society, which some wish to see for their own dark purposes.

This is the failure of those who prescribe austerity, or stimulus, but without significant systemic reform. There are those who wish to bring the economy down, and to institute a command and control form of government.

And they are as much or even more on the political right than on the left. After all, corporatism is fascism. And the opportunity and impulse to reform has been coopted by the promotion of a stalking horse, a new Emmanuel Goldstein, into the presidency.

Judging from the inane and virulent emails that are circulating, most of which cannot survive a few minutes of common sense or the 'snopes' test, the American people are being prepared for domination by a 'strong leader.' Why do people forward such easily debunked rubbish? Why do so many older people get angry when the error, the blatant lie, is pointed out to them? Because they have set aside reason, and the burden of freedom, and taken the easier path to fear, blind hate, and serfdom. And in too many cases, it is working. I would again caution those promoting this campaign that madness has no master.

The banks must be restrained, the financial system reformed, and balance restored to the economy, before there can be any sustained recovery.

By Jesse

http://jessescrossroadscafe.blogspot.com

Welcome to Jesse's Café Américain - These are personal observations about the economy and the markets. In providing information, we hope this allows you to make your own decisions in an informed manner, even if it is from learning by our mistakes, which are many.

© 2010 Copyright  Jesse's Café Américain - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in