George Rebane
“Politics is the gentle art of getting votes from the poor and campaign funds from the rich, by promising to protect each from the other.” Labor organizer Oscar Ameringer quoted in the London Independent. What he really meant to say is
Politics is the con game of buying votes from the poor with the sale of favors to the rich by promising to protect each from the other.
The EU will “defend the euro” by agreeing to pony up about $1T in bailouts and loans to its member countries. And the markets across the world are surging 3 to 5% in unrestrained joy, erasing last week’s losses in response to the Greek public sector union riots, and similar riots in Spain and Portugal hanging fire. I don’t have a clue what all the celebration is about. No one has agreed to stop consuming wealth at rates greater than they create it. ‘Austerity measures’ as the basis for loaning economic derelicts more money have been talked about for over a year.
The only thing new is that the European and American central banks have upped the amount of freshly printed fiat money that they are now dangling in front of fiscally irresponsible governments. Debts are not being paid off, they’re just being rolled over and increased, and now on an international scale. Yep, it seems that they have internationalized ‘too big to fail’. We are all climbing into the same boat, which, I guess, provides cover for the Obamas, Merkels, and Bernankes of the world – if everybody is doing it, it must be the right thing to do. Really?
Looking for a plausible explanation for this monkey business, one should not only follow the money, but also make sure what kind of money one is following. Ultimately this miracle money will disappear as quickly as it appeared, leaving in its wake a greater misery and perhaps worse. All I see is that the smart money has gained more time to insulate itself from the coming storm.
Inflation Solved. Meanwhile El Presidente Hugo Chavez has been huddling with his economic advisers over the weekend to see what can be done to slow Venezuela’s accelerating inflation (5+% in April alone). And they’ve found a solution. The WSJ reports that Chavez will “unleash the military” on hoarders and merchants who are raising prices. Yes indeed, that oughta do it.
Chavez has nationalized industry after industry, mismanaged his oil industry to destitution, and pretty much made the bolivar into a currency no one wants to accept. Implementing nationwide socialism is not to blame, as he promises to nationalize any company that continues to raise prices. In fact jailing those who raise prices is not a problem, Chavez says, "I have no problem doing this. On the contrary, they are doing me the favor of helping me advance in the direction established: socialism."
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