Ludwin von Mises, “Human Action”
The Ruling Junta installed by The Party has been quite busy:
- Rejoined the Paris Climate Accord which promises to raise US energy prices with no impact on climate
- Rejoined WHO after they allowed China to export a virus that killed over 2 million people and crashed the US economy
- Terminated the Keystone Pipeline resulting in thousans of workers and raising heating and power prices – while enriching Democrat donor Warren Buffet whose railroads will carry the oil.
- Extended eviction moratoriums pushing more small businesses into bankruptcy
- Increased the national debt by $1.2 trillion through “American Rescue Plan.”
Count on Gordon in EconomicPrism to nail it all:
Adventures in social reconstruction, however, are much more appealing to the archetypical insider President like Biden – one beholden to special interests. What’s more, the people demand it.
They want free paychecks, free drugs, free food, free rent, free school, free energy, debt free loans… You name it. They want it all. And they want much, Much, MORE. Thus, Biden intends to give it to them.
How creating money from thin air and distributing it to a growing class of dependents is supposed to help people is unclear. But what is clear is that free money debases the rewards of hard work, saving money, and paying one’s way in life. It also propels the economy and financial system to an ever more precarious place…a place where only total catastrophe is possible.
Naturally, fraud is inherent to this central planner directed process. And as credit expansion pumps money through the economy, wild and unpredictable things happen. Austrian economist Ludwig von Mises, in his work, Socialism: An Economic and Sociological Analysis, explained:
“Credit expansion can bring about a temporary boom. But such a fictitious prosperity must end in a general depression of trade, a slump.”
When central planners shut down the economy last year to bend the coronavirus transmission curve they succeeded in collapsing the debt structure. Putting moratoriums on evictions and foreclosures and placing a hold on student loan payments doesn’t solve this. Nor does printing up trillions after trillions of dollars and pumping it into the economy as ‘stimulus’ to counteract the collapse.
The rapid vaporization of wealth the central planners have set us up for will be of scope and scale the world has never before seen. We don’t know if the bottom will fall out next year or five years from now. But we’re certain the boom has turned into the crack-up boom.