HUMOROUS SITUATION

We all laughed at the Keystone Cops. They seemed to be quite humorous because of their ineptness. All that we can do is sit back and watch the ineptness of the world’s governments as they seek to contain the widespread financial panic that they themselves caused. They are scrambling with all kinds of gimmickry hoping that the people do not panic and there is a huge bank run.

To say that the government is clueless when it comes to the way an economy works is a huge understatement. They think that they can regulate an economy by manipulating the interest rates and increasing the money supply without consequences. When it blows up on them and it will, then they seek to overcome this situation by more inflation and more easy credit. Governments never learn from their own mistakes because they are never held responsible for their gaffes.

The government always blames someone else for the mess that they caused. Most people are not bright enough to know that it is the government who causes these financial fiascos. The government is never reined in because they control the money supply and interest rates through a central bank. The central bank is used a tool of manipulation by the government. This leads to financial disaster every time.

European governments are guaranteeing depositors that their money is safe. They tell these depositors that the government will step in if necessary and insure the bank accounts. Question, where are these governments going to get the money? The options are inflate the money supply, increase taxes, or borrow the money. Any of these options only exacerbate the problem rather than solve it. Europeans are suffering from their own financial crisis caused by their own governments.

When government gets involved in areas that it should not, the bungling becomes humorous and predictable. The government causes the problem and then is called on to solve the problem that they caused. It makes sense to me. Here comes the calvary to the rescue. The government is viewed as a savior rather than a manipulator and swindler. The result of government intervention in the economy means further government controls. The government causes a crisis and then takes away more freedom from its own citizens.

The government has declared war on its own citizens. Special interest groups are pitted against each other when the government has control of the purse. The only way to get your way is to petition the government. When a government controls the economy of a nation, then freedom becomes just a word that has no meaning. What needs to be done is that the world must be put on a gold standard and money be issued privately. The government’s role in the economy should be for the enforcement of contracts. As long as the government has control of the purse, financial crisis after crisis is ensured.