Quacera's Market Radar

Popular Delusions

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We know what does not work. Governments that promise what they can never deliver, fail. Those promised benefits become the rallying point for both sides of the fiscal argument. Governments cannot create real economic growth, jobs or wealth by fiat. It takes hard work which doesn’t always succeed and politicians can never deliver on promises that they can eliminate work, thrift & risk by “enlightened” policy. The deception that economic success is achievable by reducing everything to mathematical equations that are then formulated into law is losing its power due to its own inevitable failure. Debt deflations are the result of debt created wealth and cannot be stopped by anything other than the reduction of prices to a clearing level. Force, as applied by the Fed, ECU, U.S. Treasury, Bank of Japan, etc. using schemes that involve money printing or debt induction only serve to slow the price clearing mechanism. Marching in the streets doesn’t work any better unless the marchers can bring about the reversal of the policies that have slowed the process. Usually however, street marchers bring about an unwanted change which only worsens the situation. As a reference see: The French revolution or the Weimar Republic.