Enjoy the Decline? No thanks

Not much going on in this glacial news cycle. Just the usual blah blah blah about Iraq and Putin, like ambient noise of the air conditioner.

The gloomers like Aaron Clarey say that America will enter a major decline due to too much debt and the usual factors that have already been covered to death, but so far have been wrong.

The only decline will not be in America, but the trading accounts of anyone shorting the market or treasuries. Shiff, Taleb..all these liberals are broken clocks that only want capitalism by their terms, otherwise they cry socialism. The fed, by printing money, is stoking capitalism. Business want the fed to print more. So do investors, speculator, and so on. These libs like Nicolas Nassim Taleb think they are looking out for the best interest of capitalists by opposing the fed and deficit spending, but because these people only have careers spreading fear and hawking worthless books and other crap, they are oblivious. It’s selfish to want society to fail just because you don’t like the way things are being run. If you claim to be a capitalist and a republican you should support the fed, because the fed is helping to create wealth *, which benefits capitalists.

*(except for the Volcker fed that was a disaster, because he’s a liberal. By raising rates too quickly, he pushed the economy into an unnecessary recession, crashed the stock market, and caused the S&L crisis. Continuing in his tradition of destroying capital, under Obama, he created the rule that bears is him as part of the Dodd-Frank reform )

On to the video. Aaron is right about liberals being stupid, and they are, but in an attempt to oversimplify, his video is so ridiculous as to possibly be considered satire.

Yeah, but why would the factory suddenly sell two mints for a dollar. What if it it costs 90 cents to make a mint, selling two for a dollar would incur a loss. Even a republican like myself says that some printing is needed if the consequences of doing nothing exceed the costs . Bernanke, Paulson, Milton Friedman, Greenspan – all republicans, also agree. Also, in times of crisis and panic interest rates for reserve currencies such as the US dollar go to zero, so the costs of printing are next to zero, and it’s not like the money is going directly into the hands of consumers, as the example alludes to. It goes to bank recapitalization, buying bonds and other securities. The idea is to boost confidence by creating liquidity, because liquidity tends to evaporate during panic. Ironically, the tax cut , a republican policy, is the closest thing to the example you gave of literally putting more money into the hands of the consumer. Only recently is lending finally picking up.

If you treat these doom and gloom pundits as anything more than entertainment value and actually begin to make investment decisions off their prognostications, I guarantee you will fail. With the exception of brief spurts like the financial problem of 2008, in the long run, no one has made consistent money betting against the fed, the consumer, technological innovation, the free market, and the policy makers consisting of the smartest people that are ready to swoop in at the slightest signs of trouble. Consumers want to consume, smart people want to innovate, and businesses want to expand. These trends are immutable as the sun rising and setting. If you think that one day all of this is going to stop because the fed balance sheet is too big or some liberal says the the economy is weak, you’re in for a disappointment. There’s a lot of economic uncertainty and people lose losing their jobs, but that doesn’t mean the economy is weak or that we’re on the precipice of a crisis. Facebook and Google doesn’t care about the debt being too high or too much wealth inequality.