Do You Believe In Magic?

The Naval Sub Service has a favorite admonishment to skippers who tend to fixate on and make adjustments to the track of self-guided torpedoes - "DON'T STEER THE TORPEDO!" The device works best when it allowed to operate according to it's own guidance system, and messing with it just creates problems - potentially deadly problems. The skipper's job is to manage the ship and the mission, not the weapon.

Oh that Obama, Bernake, and other central planning fanatics would just heed this same sound advice when it comes to monkeying around in economic affairs. They could listen to the advice of Peter Schiff, the man who correctly predicted the bursting of the real estate bubble, which Gubmint planners created to fix the dotcom bubble, and which has now been replaced with the government bubble. But it is doubtful that these believers in "magic" economic control will heed Schiff's new book, The Real Crash: America's Coming Bankruptcy---How to Save Yourself and Your Country, explains why Schiff believes the USA is already bankrupt, and why declaring national bankrupcy sooner, rather than later, would put us on a course to economic sustainability and health. The more the Gubmint prints money and uses it to purchase its own bonds to support low interest rates and debt payments, the bigger this final bubble grows and the more devastating the burst will be.

Listening to the economics pundits scream at each other yesterday, one wonders if the final collapse is imminent.  Will this Summer's predicted stock market drop rally in the Fall as we begin to get a clearer picture of who the USA's next Chief Executive will be?  Or will continued ignorance of the truths held by the Austrian School of economic theory, versus the continued (groundless) hope that Keynesian Bubble Magic will float our global economy in one giant, happy hot tub of prosperity, finally bring us to our day of reckoning?  One TV punditonomist suggested that the members of the European Union each receive copies of Ayn Rand's Atlas Shrugged.

Please tell me that California isn't the USA's very own Greece. Or is it worse than Greece?  Talk about a culture where the solution to the problem is to shoot the messenger, those folks who elected Captain Moonbeam are undeniably bound and determined to toke their way to prosperity. Connecticut isn't far behind California. Make the comparisons and draw your own conclusions as to why these workers' paradises are about to implode.

And the impending crash is being billed by the left as the failure of capitalism?! NOT!

As Schiff points out, the Gubmint's answers to Gubmint-created problems are more Gubmint intervention, and we will eventually see the result (maybe soon). Yes, we are becoming more politically polarized. Some folks just can't accept reality. 

2+2 ALWAYS equals 4.