Fiat Headphones

The Real Solution to the Debt Problem - David S. D'Amato - Mises Daily: "Not only do the Fed's inflationary policies make unsustainable government debt inevitable, then; they also grant to the big banks command over the entire economic framework. Whereas their influence would be checked by the tides of a free market, they become, within the cartelized economy of the Fed, the pivot point of all commerce. That privilege ultimately costs taxpayers and consumers in the billions, perpetually setting the entire economy on the course of crisis and ruin. The alternative is a market freed from the state's needless regulations and its cancerous central bank, a market that would not forcibly prevent rational responses to economic signals. That alternative is the only real solution to the debt problem.

Within the present system, a balanced budget could only ever mean stifling and overwhelming levels of taxation, which would even further serve to blight the economy. A true remedy to the condition of government debt is the elimination of its underlying incentives and root cause. It's time to free economic life from the burden of the Federal Reserve System, letting individuals' voluntary exchanges decide questions of money and credit."

Some of the very few who have anything resembling an economic education may be wondering why they have the uneasy feeling that even a balanced budget may not work -- probably due to the suspicion that O Duce will get his way with taxes and spending won't drop.

This article provides great insight into that present ruinous situation.

Some of you may be disinclined to accept the thesis laid out here based only on a concern that this school of thinking -- most visibly represented perhaps by Ron Paul -- will lead to the disarmament of America and the ruination of the world. I have a lot of sympathy for that point of view and it would be a viable argument if the current state of the world wasn't already catastrophic ruin and vectoring worse.

The sad truth is that even with the "fiat resources" of the banker's America, we have been unable to glue on any logical operation to the cargo cult we fondly refer to as the international community. And to a large degree that's because it's a fool's errand to ask one cargo cult to reform another -- we didn't have anything useful to tell the others even should they listen.

That said, having O Duce instead of "bad Bush, bad, bad Bush" is in fact more dangerous for us. I suspect that a resurrected Machiavelli would opine that Mom jeans don't inspire much fear ... and I would add most certainly not to those large numbers of violent cargo cultists wearing wooden headphones.