Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
AI Tech Stocks State Going into the CRASH and Capitalising on the Metaverse - 25th Jan 22
Stock Market Relief Rally, Maybe? - 25th Jan 22
Why Gold’s Latest Rally Is Nothing to Get Excited About - 25th Jan 22
Gold Slides and Rebounds in 2022 - 25th Jan 22
Gold; a stellar picture - 25th Jan 22
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Market Bubbles and Economic Busts

Politics / US Economy Aug 22, 2013 - 10:53 AM GMT

By: LewRockwell

Politics

Charles Goyette writes: Has President Obama at last figured it out?

If only.

The President has been talking a lot of late about the bubble economy. Last month he mentioned “unstable bubbles” that threaten the economy, and the other day in his radio address he referred to “the bubble-and-bust mentality” that has made “a mess” of our economy.


We would feel better about Obama’s comments if there were any reason to think he has a clue about the role of the Federal Reserve in creating these bubbles and busts.

But experience teaches that the repeated use such terms and buzz phrases by party apparatchiks and presidents – Obama has talked bubbles four times in five days – means that they are nothing but focus-group tested talking points. Some research firm has been paid by the party to hook subjects up to machines and find out what words resonate with them by making their palms sweat and pupils dilate. That’s the high art of today’s politics.

Do you suppose Thomas Jefferson used a focus group to test “We hold these truths to be self-evident…”?

It’s not entirely clear what the president means anyway. Buzz phrases and sweaty palms are poor substitutes for clear thought. The bubbles are visible enough, but recently Obama said, “When wealth concentrates at the very top, it can inflate unstable bubbles that threaten the economy.”

Then why has his administration driven the concentration of wealth, the bailouts of the influential, the sweetheart deals for the crony classes, and the monetary policies that have stove-piped money to Wall Street, enriching the banks while the people continue to suffer depression-era levels of unemployment and watch full-time jobs turn to part-time?

I think that Obama, as well as most Republicans, is a corporate statist, rather than a Marxist. That is the broad road to electoral success in America. But even so, the ghost of Karl Marx lurks somewhere in the president’s outlook. Marx held the view that a destructive cycle of booms and busts was inseparable from capitalism itself.

But the Austrian school economists – Mises, Hayek, Rothbard – have long since demonstrated that rather than capitalism, the boom and bust syndrome is the work of central bankers and their distortion of money and credit conditions.

Obama knows none of this.

Focus-group tested talking points aren’t the only thing self-evident in the modern political process. So, too, is the lap-dog press, always subservient to its statist masters.

The newspaper account in which I read of the president’s radio remarks about “bubbles and busts” filled out the story with reference to the likely replacements for bubbling Ben Bernanke at the Fed: Janet Yellen and Larry Summers.

For a comment on these two peas in the short-list pod it turned to – of all people – a former Fed official!

And he offered that “both candidates can claim bubble-battling expertise.”

How is it that we’ve had more bubbles than Lawrence Welk and his Champagne Music Makers, what with the president and all these bubble-battlers bustling about?

Just this week the Federal Reserve’s purchases of U.S. government debt with money it just created out of thin air has topped an unthinkable $2 trillion! Add to that the $1.3 trillion in mortgage-backed securities it has purchased, taking toxic paper off the balance sheet of the banks and transferring it onto the account of the people’s dollar.

And thus wealth concentrates at the top.

The downward movement of bonds will only be exceeded by the upward movement of gold as this biggest-of-all-bubbles plays out.

Charles Goyette [send him mail] is the author of the New York Times bestseller The Dollar Meltdown. His new book is Red and Blue and Broke All Over: Restoring America's Free Economy. He is also editor of Freedom & Prosperity Letter, a monthly political and financial newsletter dedicated to revealing the truth about the U.S.’s political scene and economic climate. To learn more, go here.

Copyright © 2013 Charles Goyette

http://www.lewrockwell.com

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in