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A subtle victory.
Jan. 18th, 2008 01:49 pmThough it is unfortunate that there will be temporary suffering, this was unavoidable... the Fed's only been making it worse by putting it off.
Nonetheless, it is good to see Bernanke caught in the pincers he helped to create.
This is a moment of triumph for the common people of the world, though it does not appear to be on the surface. Few things are.
Liquidation of at least one layer of the parasitic classes is now inevitable. The secondary capital structure will rationalize itself, despite the best efforts of the elite to keep the scales unbalanced.
Though we may have less money in the short run, we will have more purchasing power in the long run.
Hopefully the Fed will make a few mistakes and the capital binding patterns will unravel quickly. A short, sharp shock will be preferable to letting it drag out and giving more rats time to jump ship. But to be clear, this is what The Plan is now.
To make this unravelling slow, and as painful as possible for the middle and lower classes. Giving them more time to escape and plan their next move, as well as pushing more of the burden on us. In this way also, there will be more demand for the elite to "do something" about it, more deference to authoritarian measures. Same trick they used in the 30s.
Hopefully we won't get fooled again. But then again, this time there's less room to maneuver. No 100 years of accumulated capital structure to burn through. So the odds are much better for us. Plus the fact that international interdependence will make it much harder for them to get away with it while the rest of the world takes the hit.
Nonetheless, it is good to see Bernanke caught in the pincers he helped to create.
This is a moment of triumph for the common people of the world, though it does not appear to be on the surface. Few things are.
Liquidation of at least one layer of the parasitic classes is now inevitable. The secondary capital structure will rationalize itself, despite the best efforts of the elite to keep the scales unbalanced.
Though we may have less money in the short run, we will have more purchasing power in the long run.
Hopefully the Fed will make a few mistakes and the capital binding patterns will unravel quickly. A short, sharp shock will be preferable to letting it drag out and giving more rats time to jump ship. But to be clear, this is what The Plan is now.
To make this unravelling slow, and as painful as possible for the middle and lower classes. Giving them more time to escape and plan their next move, as well as pushing more of the burden on us. In this way also, there will be more demand for the elite to "do something" about it, more deference to authoritarian measures. Same trick they used in the 30s.
Hopefully we won't get fooled again. But then again, this time there's less room to maneuver. No 100 years of accumulated capital structure to burn through. So the odds are much better for us. Plus the fact that international interdependence will make it much harder for them to get away with it while the rest of the world takes the hit.
