In his "2012 In Review", Tyler Durden has turned his limited powers of discernment inward to ask the obvious question: "Why was I wrong?" His very next post is titled "Postponed" in which he discusses the postponement of the political and economic action needed to make the world a better place, i.e., debt reduction, elimination of fiat currency, the cleansing millenarian fire-and-brimstone to be found in a deflationary abyss. In fact, what has been postponed is the end-of-the-world, the collapse predicted by all those unemployed economists, laid-off traders, and machine-gun toting, pick-up driving, off-the-grid living, spam (and tuna)-sandwich-eating survivalists at ZeroHedge.
Like most intellectuals whose analytical pretentions prevent them from seeing the obvious, he has to blame someone else for why he is just plain wrong. Not just anyone, EVERYONE: the Fed, the Government, crooked banksters, the media, the man in the street, blah, blah...
The global economy is healing, and he needs to allocate blame for getting it wrong. Maybe activist central banking works to some degree. Maybe fiat currency is one of the most important inventions ever (up there with the micro-chip). Maybe debt can be useful, helpful. In any case, Capitalism looks fairly sustainable, though not necessarily stable. But history has never been stable. Crisis and correction are part of the process, not the end of anything.
Anyway, here is the paranoid quote of the year (in review):
"...I’m more interested in why I was wrong. It seems I always underestimate the ability of sociopathic central bankers and their willingness to destroy the lives of hundreds of millions to benefit their oligarch masters. I always underestimate the rampant corruption that permeates Washington DC and the executive suites in mega-corporations across the land. And I always overestimate the intelligence, civic mindedness, and ability to understand math of the ignorant masses that pass for citizens in this country. It seems that issuing trillions of new debt to pay off trillions of bad debt, government sanctioned accounting fraud, mainstream media propaganda, government data manipulation and a populace blinded by mass delusion can stave off the inevitable consequences of an unsustainable economic system. Will 2013 be the year it all collapses in a flaming heap of rubble? I don’t know..."
Destroy the lives of millions...ignorant masses... fraud, blindness, delusion, inevitable... flaming rubble?
OMG this guy isn´t funny, he is certifiably CRAZY!
"(and tuna)-sandwich-eating survivalists at ZeroHedge"
Not trying to make fun, but this really made me want a tuna fish sandwich. Alas, I have no tuna in the house.
"Maybe activist central banking works to some degree. "
"Maybe fiat currency is one of the most important inventions ever (up there with the micro-chip)."
"Maybe debt can be useful, helpful."
Ummm.....yes. But it can also be destructive. As we've seen. I don't read zero hedge, I don't buy their lack of faith in the positives that have come from the banking system, and I think there's been all too much conspiratorial thinking absorbed by some folks on this board, either from there or from other sources. I do think, however,,,,,,,, but I'm perfectly willing to listen to anyone logically show me where I'm wrong, ......that we've continually put off dealing with our problem of living beyond our means by one unsustainable cycle after another. First, we had Reagan and the myth of supply side economics. Then we had Clinton and the then Fed's turning of the blind eye to the overexuberance of the stock market and the beginning proliferation of derivivatives that helped to fuel that. This probably caused people to take on a lot of extra personal debt that they wouldn't have otherwise. Then we had Bush, easy housing credit and further proliferation of derivatives. Now, we have a political climate where it's been necessary to maintain our economy by running huge deficits and an activist fed soaking up that debt through the printing of money. Through one cycle after another, we've put off the real problem we have - living beyond our means. I don't see this as necessarily a Democrat problem or a Republican problem.
"Capitalism looks fairly sustainable, though not necessarily stable. But history has never been stable. Crisis and correction are part of the process, not the end of anything. "
Well, combine the thought that we've been living beyond our means with the idea that as the world as a whole seeks a better standard of living, that that our own level of living is going to become even more costly. It's not something that we can't get through, but it may not be easy.
It was not so long ago that Clinton delivered a balanced budget. A litlle bit of prosperity can go a long way to providing the resources the government needs to operate in a fiscally responsible manner.. In fact tax receipts have begun to rise again after the crash the crisis caused. Of course, prosperity needs to go beyond the very few... or they need to pay much, much, more back into the system.
Fed policy has been positive. Stimulus has worked. Low interest rates are good. Inflation is low. The dollar is just right, if not slightly over-valued. All this is beyond debate. The real issue is what comes next, when (not if) the global economy picks up steam. Will we have a surge of inflation? Will rates spike? Can the Fed soak up the liquidity without harm? I just don,t know... and neither does anybody else.
We have real problems as a country. Aging population, international competitivity. falling incomes and educational levels. Poverty. Regulation of derivatives and finanncial marketsd, in general. It is a travesty that our political discourse is centered around things like birth certificates, the gold standard, basic reproductive rights, anti-science, the illusion of free enterprise, the "right" to pack assault weapons... etc. These are the issues the Right uses to distract mostly under-educated, rural, southern, red-state people (the ones who receive transfer payments and pork from the more urban, educated, blue-states in the North and West - and then have the stones to complain about big government largesse) from the obscene transfer of wealth and loss of opportunity that have taken place over the last couple of decades.