Of course, when these banks do open, and Bernanke's QE3 will already have "stimulated" them with infusions of credit, the BSE Sensex will rise. And it will NOT be a sign of "economic health" - for this will have NOTHING to do with savings, investment, production, or even PROFIT.
On the other hand, continuing inflationism will destroy the CAPITAL of the poor. This will destroy mass savings, mass investment, and mass consumption DEMAND as well.
DELUSION - that is fiat paper money inflationism and the "macroeconomics" they teach worldwide, for it has NO FOUNDATION in anything "micro" - and most certainly not in the CONSTANT of the "logical categories of the trading human mind." Macroeconomics is NONSENSE - a "pretension to science." Not that THEIR "microeconomics" is any better.
Having said that, what do I think of two ideas floating around on how our The Predatory State is going to go about reforming itself?:
First, that a new, "one-stop financial regulator" is to replace the entire bunch.
And second, that they will seriously attempt "fiscal consolidation" - and even pass legislation towards that end.
BOTH IDEAS MUST BE DISMISSED OUTRIGHT!
The lack of regulators and their regulations is NOT the problem. The CLOSED DOOR MEETING between "central banking and monetary authorities" is. These DISCRETIONARY "policy-making authorities" must go.
Hence: PRIVATE MONEY - and free, competitive banking under Law.
Further, as I explained yesterday, no more regulators, regulations, and no more "policy making" either. All these are ARBITRARY - the "rule of will," and therefore examples of the ABSENCE OF LAW.
LIBERTY UNDER "PRIVATE LAW."
It is only under these conditions of liberty, property and law - and these govern money and banking as well - that our numberless poor will ACCUMULATE CAPITAL. They will save, invest, and PRODUCE - in increasing quantities, that too, thereby STIMULATING MARKET DEMAND, even for the "mass produced" goods that come out of the factories of all the BIG CORPORATES listed on the stock market index.
ECONOMIC SCIENCE.
When the above happens, whatever our The Predatory State calls "fiscal consolidation" will be swift and automatic - for, without fiat paper money to spread around they will perforce have to "adjust their conduct" to a very new Budgetary Reality.
THEIR PARTY WILL BE OVER!
And OUR PARTIES WILL BEGIN!
Further, with private law, public order will be regained.
Justice will be ex ante when all consensual trades are free - by definition, for there will never arise any legal disputes.
The rest of My Prescription remains the same:
Hit The Coast - establish free trading and self-governing cities and towns, all little REPUBLICS, benefit from the International Division of Labour, the peace that will automatically ensue, and the civilisation that will, too.
Let each little republic fly its own flag - just as every tiny Swiss canton does, all 26 of them in this tiny nation comprising three distinct linguistic regions. Prosperous - despite being mountainous and LANDLOCKED. Always favouring trade and PEACE - stayed OUT of both world wars. Very good private banks - once upon a time. And the REPUBLICANISM of Geneva, for example, was something all Europeans admired way back when they themselves were ruled by "all the crowned heads."
MOST IMPORTANT:
What I have been writing all along, including yesterday, is that WORLDWIDE MISEDUCATION is the root cause, and that the PROGRESSIVE ENLIGHTENMENT OF MANKIND is the only solution.
This, then, becomes the intellectual and moral responsibility of the Fourth Estate; in particular, the financial press.
I therefore recommend two recent posts:
First, "The Responsibility of the Economist."
And second, "What is a 'Real Economist'?"
I also recommend this article on Bernanke's QE3 being "promoted" by certain sections of the media who "support government expansion."
