The Keynesian’s final hour has begun. The financial carcinoma that was instituted into the world monetary system with the triumphs of Socialism under Roosevelt, Mussolini and Hitler, has finally spread throughout the entire body of Capitalism until it is eating it alive. Just as Nobel Prize Winner Frederic Hayek predicted in his 1946 “The Road to Serfdom” (written in 1943), any amount of Socialism must finally spread and bankrupt the entire system, and those accurate predictions of Hayek’s are being so beautifully played out in Europe, that bastion of Socialist “Social Democracies”. Exactly. “Social Democracies”, without Jefferson’s fierce defense of property Rights, will inevitably descend into chaos, as they spend themselves into bankruptcy. It happened in Rome 2000 years ago, and it’s happening in Greece and Germany right now. The exact same phenomena, since the psychology of people vis-a-vis money never ever changes. The attitudes of a man were exactly the same towards capital two millennia ago as they are today in the worker who takes his money to the supermarket, and tries to shop carefully. And since these economic attitudes and psychological “laws” are exactly the same on an individual basis for all people, across all ages, it follows that the economic herd behavior of Mankind will likewise be the same irregardless of time. We may have computers and iphones, but psychologically we are no different from the Roman middle-class patrician who wanted to grow wealthier but was afraid of poverty.
So Euro-Socialism is crashing and burning, and that even with the U.S. footing over $100 billion a year in defense costs that Europe doesn’t have to provide for itself. Euro-Socialism evidently also entails ripping off the American taxpayer, for now we hear that the Frog-German Axis wants America to bail out their grand visions of Euro-Socialism by having the IMF give, called loan, them the money, instead of Congress. It sounds more antiseptic if the IMF does it, and the Prez can go on TV and tell us how we have to help stabilize our Euro-brethren with the money we don’t even have for our local police protection.
Yes, let’s bow down and give our all to the Europeans. After all, they deserve it, and we don’t. Even though we’ve micturated away a Trillion dollars (at least 10 times 100 Billion) over the last decade alone (not including the annual interest on that amount) defending them, so they could spend the money on all kinds of sugar-coated subsidies, which the slaving class in America goes without but must pay for. No, we have not sacrificed enough, for we are Capitalists (supposedly) and therefore wicked, while they are Socialists (evidently) and therefore sacrosanct. And therefore deserving. So put a copper 5-Rothbards coin in our collection can for Luxembourg.
It’s interesting how the calmsters were quick to blame yesterday’s biggest drop in 23 years on a trader error, for what is predicted by Elliott wave theory is precisely a very violent wave down in this phase of the wave pattern. Yesterday’s 1000 drop, the worst in 23 years is right in line with that theory, but those who think that there are simple rational explanations for all economic events, and not mass swings of psychology and mood, had to have a plausible reason for the plunge. Yet, if hitting a wrong button or typing in a wrong number can derail an entire system, the system would probably be crashing dozens of times a day, given how many incorrect orders, or buys where sells were meant, occur by obsessed, harried, and scared traders. And what of the margin mechanisms that supposedly won’t let a trader sell contracts or stock than he has not the margin for. That should have blocked such a mistake from occurring right off. No, another bromide for the twice caught bulls. They’ve forgotten their lesson after only 14 months. Greedus resurgits. (Is that really Latin?)
And Keynesian Socialism may find itself fatally gored this weekend by a Northern Rhino that will bring about the West’s Keynesian failure as the state of North Rhine-Westphalia votes on the Merkel miracle of Greece’s delivery at the cost of depressed Germany. They think they are depressed because of Merkel, or some politician, or even the Greeks, but they are depressed because Socialism by its inherent logic always ends up spending itself into poverty, and like amphetamines, while the addict is high, he’s got his energy and euphoria, but one day his bodily reserves run out, and then he crashes miserably. And Europe has been running on the amphetamine of Socialism for decades. Time to pay the piper, and have your rotten teeth fall out.
Of course, Europe should bite the bullet, even with their gums, and devalue their currency back to the Socialist level it warrants, which we’d wildly guess right now would be about 90 cents, but of course, that is to declare Socialism a failure, and it will take a few more years, or months, (or days?) of suffering for that satori to rain down upon the People’s consciousness.
Tricky Trichet has tricked them again, just as Tricky Dick did in 1973 when he committed the crime of closing the gold window. “Believe and you’ll be disappointed” goes the old saw.
A lot of Europeans, bond holders and stock bulls believed. And the price of believing in Socialism is …
Hooooooooooooooooooooooooowwwwwwww! — Silverwolf