Awake – Textures
Who would’ve thought that Ol’ Yellen would’ve been the one to take the economy out back and shoot it? I ask this in not a bitchy, simpleton, Krugmanesque manner, but in an Austro-monetarist one. Seven years of All-American ZIRP have thrust the country into an orgy of both consumption and investment: an attempted push beyond the PPF. Instead, as we know, malinvestment has merely been exacerbated by the scramble for yield, bidding up of bullshit assets, and interest rate manipulation following the most recent “collapse in investment demand.” One would be foolish to think that the present, massive undercurrent of malinvestment had its origins in the crisis seven years ago, just as the one fifteen years ago. Malinvestment is not only a natural consequence of central banking, but central planning as a whole. Resources, goods, and services are constantly siphoned off and diverted from their purposes that would otherwise have remained as varying, myriad parts of the plans of more-exacting market actors. Of course these malinvestments build upon each other, as good money is thrown after bad for generations, and an Austrian of the libertarian variety would be hard-pressed to argue that the military-industrial complex and the government as a whole are not simply massive misinvestments; while they would also argue the same is just as true of the evil welfare state that creates and enslaves those with no desire to work for themselves. Compound that for the years following the constitution, inject Hamiltonian-Lincolnian federalism, add a sprinkle of corporatism and progressivism thanks to world war and crackpot social movements in favor of our malevolent sheepherders, and we haven’t even hit the seventies yet. Mix in the worst parts of some of the best economic theories (Friedman’s bond-buying, for example) and we now are living in what started as a revolt against Keynesianism and ended up a whole-hearted embrace of its theories, combined with technocratic psychosis.
Anyway, what a fuckin’ summer that was. Janet Yellen has done a 180 on Bernanke’s policies, and instead of embracing his new-school WYSIWYG policies, has instead decided to take heed of the neoclassicals that (perhaps rightly) insist that one must fool the markets to alter them, as they otherwise incorporate all data available, and coordinate accordingly. However, she did properly signal to the market her intent to raise rates in Diciembre. We have a half-senile woman that has been stricken by a stroke during a prepared speech directing the monetary policy of the world’s largest and most influential central bank. Now she’s decided that it’s time to slowly wake up, shake off the heroin sleepiness, and crawl our way out of the monetary roach motel that her own psychotic band of central planners originally dragged and drugged us into.
Yesterday, Janet Yellen and the other Fed heads decided to reverse Bernanke’s monetary Frankenstein’s monster and go beyond mere tapering of purchases (purchases we will never know because their balance sheet is some kind of national secret) and instead slowly allow interest rates to rise to their market level, or at least closer to that level, as we all know that a central bank will never correctly approximate the real supply and demand for loanable funds. Keynes once said that full employment only happens “by accident or design.” This could easily be said of relative prices and interest rates. Central planners will never know the correct amount of liquidity to inject into the system to satisfy Q (output) in the MV=PQ equation. They don’t know whether a loaf of bread or a deck of playing cards should cost more than the other. They can’t tell us why interest rates are really just part of the structure of relative prices. Hell, monetizing debt simply takes from the future and places it somewhere in the nearer future. Isn’t hte price of goods now to the price of goods later itself a market price?
On another note, have you been watching the debates? These fucking Christian jihadists want World War Three over a pile of fucking sand? Say it ain’t so! Thermonuclear war with the Russians over what? Bashar al-Assad? Obama knows that he didn’t use chemical weapons on the citizens of his own country. Why does Obama want Assad out so badly? Why does every Democrat and every Republican other than Rand and the Don? Ask yourself that, and ask yourself this: How is your average American so ill-informed, so blind to reality, so brainwashed, as to not realize that ISIS is the creation of Adolf Hitlery and Obama bin Laden? Who else armed, trained, and funded rebels in Syria and Libya? Who made the massive warehouses full of guns and bombs in Iraq that “accidentally” fell into ISIS hands? Bush, Obamao, Hillary, Cheney, Kerry, etc. I will not continue, so as to not insult your intelligence. Suffice to say, anyone that has more memory than a hamster, and reads even merely the totalitarian-communist mainstream news, already knows that the holy central planners in Washington created these fucking pricks.
Another question: when did people become so fucking stupid as to believe that there is such thing as a free lunch? Bernie Sanders as one of the most popular pols running for office? I know leftism has become rampant in modern society ever since Marx invented his brand of socialism, but this is getting out of fucking hand. Larry David’s impression of Sanders was right on point: “We gotta break up the banks into little pieces and then flush the pieces down the toilet so you can never put the banks back together! Then you make the bankers pay for college for everyone, and America is fixed!” I think that’s the general sentiment. I mean, people even still think that the banks were responsible for the last financial crisis, not financial central planning itself.
The reason I called titled this article as such, is because of two things: the complete and utter destruction of our culture and society via leftism and statism, and the oncoming controlled-demolition of our economy by the central bankers that have been unafraid to blow bubbles, but increasingly, to our detriment, frightened to pop them. I love that the Austrians always paradoxically, yet correctly, quip that the bubble is where the damage is done, and the deflationary recession is where all the crap is purged from the system, be it meticulously or half-assedly (as in the last “collapse”). However, this is just one symptom of the oncoming annihilation of our formerly semi-civil society (which was garbage before but is going to hell in a handbasket now). The total loss of Western values will not come lightly, and has been creating a slowly-growing constellation of societal problems for as long as we have been sliding into socialist hell (let’s say, since 1912). As for the Free Shit Army, the holy gubmint, ISIS, and so on, they don’t give a single shit about economics, history, the non-aggression principle, individual liberty (the only kind), or really anything other than getting what’s theirs. We’re quickly sliding into a totalitarian police state buttressed by moneyprinting, warfare, and welfare shut-up money.However, beyond neoconservatism, yet not opposed to it, are the social justice warriors, likely the ones that will take us over the edge of the cliff, in my opinion, because they are intentionally destroying Western values and intentionally are ignorant of economics and history, as they are poisoned by “white heterosexual christian male capitalist patriarchy” and are thus too tainted (and “boring”) to be worth learning. Instead of learning about formal logic or biochemistry, we should instead take classes in “Critical” race theory (which means that white people = evil) and gender “equality” (even though feminism actually disdains gender equality and advocates collectivist female revolution).
Fuck em. I’ll keep working my ass off to pay for their stupid welfare they think they deserve just for being born, bullets for stoners’ dogs and the kevlar vests to protect their killers, magical faceless propeller-spinning death robots for blowing up weddings and double-tapping their rescuers, warehouses stacked to the ceiling with hard drives for spying on everything under the sun, and worthless lying immoral D.C. politicians’ hookers and blow. In the meantime, you can find me spending my precious spare time educating myself on markets and history while likely having a stiff drink to take the edge off, but someday I may just need to leave this fucking glorified plantation.