About This Blog

Ludwig von Mises (1881-1973) was the greatest economist of my time. His greatest works can be accessed here at no charge.

Mises believed that property, freedom and peace are and should be the hallmarks of a satisfying and prosperous society. I agree. Mises proved beyond a shadow of a doubt that the prospect for general and individual prosperity is maximized, indeed, is only possible, if the principle of private property reigns supreme. What's yours is yours. What's mine is mine. When the line between yours and mine is smudged, the door to conflict opens. Without freedom (individual liberty of action) the principle of private property is neutered and the free market, which is the child of property and freedom and the mother of prosperity and satisfaction, cannot exist. Peace is the goal of a prosperous and satisfying society of free individuals, not peace which is purchased by submission to the enemies of property and freedom, but peace which results from the unyielding defense of these principles against all who challenge them.

In this blog I measure American society against the metrics of property, freedom and peace.

Wednesday, June 20, 2012

Bernanke Contributes To Obama's Reelection Campaign

Helicopter Ben is extending "Operation Twist" through the end of 2012 to the tune of an additional $267-billion. For those interested in a financial explanation of what that means, read this.

Here's what it means in plain English: The federal government's deficit and debt machine has another short term lease on life, i.e., the can is being kicked down the road at least beyond Presidential election day. It also means the Fed is running short on ways to keep interest rates at near zero -- barring, that is, more blatant money printing which, mark my words, will come sooner rather than later.

When it does, the stock market will go up lead by financial equities as banks open the lending flood gates just enough to float the economy, enabling Maximum Leader Obama to say -- in late October -- that he's finally fixed the economy: "We've weathered the worst of the storm. Full speed ahead!"

And the economy will be fixed, temporarily, that is if Helicopter Ben provides a big enough splash. Of course, after Obama surfs Ben's wave to reelection, it will crash on the beach as it runs out of energy. Then a rip tide will grab hold and it's back into the doldrums for Obama and the rest of us.

The only way out of this endless loop of waves, crashes and rip tides is for the Washington parasites to print more and more money, i.e., make a bigger and bigger splash, which Helicopter Ben will attempt to do. This, of course, will create an eventual hurricane surge of price inflation which the official parasitic statisticians will not see. But you will, and you'll feel it as well.

Bernanke will see it and he'll try to hold the ocean back...and if he's successful this dangerous wave will recede until... ...until who knows?

Does anyone else feel that we're living through the pages of Ayn Rand's Atlas Shrugged?


John Galt said...

Agree, Bernanke is trying to get Obama re-elected. He knows that it is his only chance of keeping his job for it is more than certain that President Romney will fire him.

Sherman Broder said...

I hadn't thought of the Romney firing him angle. But I agree with you, as usual.