Wednesday, October 20, 2010

Metastasizing

I bet one could also equate this animation with expanded government interference. [Read]

Look at how rapid and drastic this is.  Now imagine a sudden national catastrophe.

Everybody who thinks everything is going to be just fine after November raise your hand.

[Via Ed M]

3 comments:

jon said...

it is much easier to equate it with the deliberate manipulation of the interest rate by the fed.

as usual, the boom leading up to 2008 led the citizenry to believe the economy was healthy and their jobs weren't going anywhere. then reality sets in, as businesses discover that vast swaths of credit extended to them will now suddenly cost so much more than they anticipated. they cannot afford new loans. some cannot afford existing loans. what is the number one thing they buy with loans? labor.

vast swaths of real savings in the economy are the only foundation on which to drive down interest rates, making money cheaper. and it intuitively makes sense: if everyone has it already -- savings -- then the price is low. and a low rate means you won't have to pay much, over time, to borrow an amount of it.

but the fed makes sure that the rates never, ever follow real savings. and what's more, since they lend to congress (read: government lends to itself) without restraint, they destroy existing savings through inflation, ensuring that even if they were equal to or better authorities than presidents jefferson or jackson were, they'd still make a mess, because they'd be calculating real savings incorrectly.

like all government institutions, the fed is deliberately charged with an impossible task that will never be realized in any corner of god's creation. this keeps them permanently "employed" even though it is the job of being at war with the people.

Defender said...

Wait, there's a bright spot.
It's right where Washington D.C. sits. Moderate unemployment, around 3 to 5%. How 'bout that? It's GOOD to be one of the king's men.
The farming and ranching prairie states don't seem to be faring TOO badly yet, also 3-5%, which is why the EPA is coming down on them with regulations on agricultural DUST creation.
Yet the mainstream media continue to talk about a "slowdown" in the "recovery."
How can we trust them on ANYTHING?

Mack said...

Geez, David, that's nothing.

What they should have done is plug in the "U6" figures over time.

Rebellion soon?