Tuesday, November 16, 2010

The U.S. Federal Reserve Bank debauches the dollar, facilitating the purchase of U.S. securities by the Chinese central bank and lining the pockets of Wall Street brokerage houses. The Chinese central bank tampers with its currency, too. It pegs the value of its currency to the dollar, despite the country's growing industrial might, thereby subsidizing Chinese export industries.

It's an old story in either case: mercantilism. The economic dislocations ensue. The Chinese central bank won't be putting up with this arrangement much longer. China's growing middle class cries out for a standard of living more commensurate with its productive capacity. Chinese export industries can sell domestically. China's middle class can consume more.

The smart capital States-side is heading to guns, gold and agriculture. And to Transportation Security Administration scatter-ray porno-scanners--the better to protect us from the barbarians!

But the barbarians are at the gates, and the Empire has responded by propping up its distant outposts. This, too, is an old story. Rome maintained its presence in Scotland, the Rhine Valley and Northern Africa even after Alaric sacked world headquarters in 410 A.D. Similarly, nine years after Nine Eleven, Washington still has troops in Germany, Japan, Korea, Afghanistan, Iraq, Outer Albania and 120 other foreign ratholes.

What's the alternative, Tony? Hmmm? Property rights and the non-aggression axiom? Commodity money replacing fiduciary media? Tosh, what twaddle! How would the elites preserve the disorder? The barbarous relic would rule the roost! There would be no hope for disorder then!



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