The Madness of George II by Bill Bonner
Bill Bonner offers this delightful piece on the madness of running the printing press to bring about economic recovery.
Our worry is not that George II will be proved wrong; we have little doubt that neither of his grand projects will yield a decent return. Instead, we worry what will happen when American hearts are squeezed harder...when the miry clay of disappointment, bankruptcy, depression, inflation, and national humiliation have Americans entrapped, struggling to stand up straight.
"Incompetent central bankers are more lethal even than incompetent generals," writes our old friend Lord Rees-Mogg in the Times of London this week. "They, too, have their Gallipolis.
"'We have suffered more from this cause [bad paper money] than from every other cause of calamity,'" Lord Rees-Mogg quotes a dead man, Daniel Webster. "'It has killed more men, pervaded and corrupted the choicest interests of our country more, and done more injustice than even the arms and artifices of our enemy.'
"I have lived through most of the period of the decline of the pound and the disintegration of the sterling area," his Lordship continues. "It was a long, historic process. Its early stages, which occurred before I was born, have some resemblance to the current state of the dollar. After 1918, Britain was heavily indebted and had lost competitiveness to new economies.
"The U.S. is now heavily indebted, and the debts are growing rapidly. The U.S. in its turn has lost competitive advantage to the countries of East Asia....High savings and competitive exports were the characteristic of the U.S. 100 years ago. Now they are the characteristics of East Asia."
Bill Bonner offers this delightful piece on the madness of running the printing press to bring about economic recovery.
Our worry is not that George II will be proved wrong; we have little doubt that neither of his grand projects will yield a decent return. Instead, we worry what will happen when American hearts are squeezed harder...when the miry clay of disappointment, bankruptcy, depression, inflation, and national humiliation have Americans entrapped, struggling to stand up straight.
"Incompetent central bankers are more lethal even than incompetent generals," writes our old friend Lord Rees-Mogg in the Times of London this week. "They, too, have their Gallipolis.
"'We have suffered more from this cause [bad paper money] than from every other cause of calamity,'" Lord Rees-Mogg quotes a dead man, Daniel Webster. "'It has killed more men, pervaded and corrupted the choicest interests of our country more, and done more injustice than even the arms and artifices of our enemy.'
"I have lived through most of the period of the decline of the pound and the disintegration of the sterling area," his Lordship continues. "It was a long, historic process. Its early stages, which occurred before I was born, have some resemblance to the current state of the dollar. After 1918, Britain was heavily indebted and had lost competitiveness to new economies.
"The U.S. is now heavily indebted, and the debts are growing rapidly. The U.S. in its turn has lost competitive advantage to the countries of East Asia....High savings and competitive exports were the characteristic of the U.S. 100 years ago. Now they are the characteristics of East Asia."
posted by Champion at 11:14 PM
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