Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in

Why Stimulus Always Fails

IMG Auteur
Published : January 31st, 2013
411 words - Reading time : 1 - 1 minutes
( 4 votes, 3.8/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Crisis Watch

Read the Monday Afternoon Wrap-Up for 1/28/2013 and the Tuesday Morning Commentary for 1/29/2013

Last week, I came across the below article; and immediately knew I had a RANT topic-to-be.  The title says it all; about realities of the past, present, and future

Guest Post: Why Stimulus Has Failed

In most aspects, the world is a very complex place.  And when you’re talking about a GLOBAL economy incorporating hundreds of nations, languages, and currencies; “complex” is certainly the operative word.  However, economic theory is not complex at all.  To the contrary, NOTHING could be simpler than Economics 101.

Its central tenet is that in a free market, supply will naturally gravitate to demand; at times, yielding painful, but necessary “corrections.”  However, governments embrace the OPPOSITE of these universal laws; mucking up the self-correcting process; causing MASSIVE capital misallocation; and ultimately, dramatic crashes like we experienced in 2008.

In and of itself, fiscal stimulus is contrary to the aforementioned LAWS of “economic Mother Nature.”  However, they are a necessary societal evil; and when utilized prudently – with retained Treasury savings – its impact is typically non-destructive; and at times, beneficial.

However, in today’s fiat world – in which ALL nations abandoned the gold standard four decades ago; the corrosive side effect of MASSIVE debt buildup has rendered the concept of “prudent stimulus” impossible.  Rather, essentially ALL nations PRINT MONEY to effect “stimulus”; causing increased debt buildup and gross capital misallocation.  Worse yet, the global “fiat standard” has enabled bankers to commandeer government; causing most “stimulus” to benefit them,at the expense of all else.

In other words, today’s definition of “stimulus” is MONEY PRINTING; to “bail out” anything and everything – but principally, bankers.  With such “benefits” come a LETHAL dose of DEBT and INFLATION – which only bankers benefit from.  This DEBT and INFLATION spreads like cancer across society; metastasizing rapidly, and causing irreparable damage.  Consequently, each new stimulus destroys more “healthy” cells; until ultimately, the law of “DIMINISHING RETURNS” is reached, causing PARALYSIS and DEATH; which sadly, is EXACTLY where the GLOBAL FINANCIAL SYSTEM is today.

Thus, from this day forward, whenever you hear the term “stimulus,” realize that society as a whole has been pushed one step closer to “economic death”; or as I often call it – FINANCIAL ARMAGEDDON.  The Mayans may not have gotten the date right – nor the specifics; but I assure you, the fact they picked NOW may one day be considered quite the coincidence.

Companies Mentionned : Gold |
<< Previous article
Rate :Average :3.8 (4 votes)
>> Next article
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
41 Facts about Central Banks no ...
20 Decprljr
Common sense and logic dictate that if this was taught in schools it would not exist as it has these past 100 yrs. The monetary system is a CON a L...
41 Facts about Central Banks no ...
19 Decsamking73
I'm not sure that much was taught about the central banking system back when I was in school...25 + years ago. At least not the important parts.
Gold & Silver Market Morning
19 Decend
If you trade XAU/RUB and have bought XAU using RUB, you should have closed your position as he advised. Then you should have switched, buying gold ...
Muslim terrorism, the left and t...
19 DecFirebear1
All please understand this person was a Muslim,that was his believe! His character was that of a criminal as was shown by his action on the day and...
Napoleon vs. Cheney: "Interrogat...
18 Decwalmarde
Torture just put the moral line lower. Lets think about American exceptionalism. What we want ? we want to spread and defend that exceptio...
Napoleon vs. Cheney: "Interrogat...
18 Decwalmarde
Utilitarianism is bad philosphy. I'm also very disgust about torture. It will backfire in our face. We are now no better than ou...
Napoleon vs. Cheney: "Interrogat...
18 DecJosu O.5
I cannot overstate how important is that every american read this article. It's absolutely wonderful how you have summarized every aspect around to...
Muslim terrorism, the left and t...
18 Decend0
Does anyone still wonder why is Australia hotbed for second generation Muslim migrant radicalization? Does anyone still need an explanation on why ...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Comments closed
Subscribe to 24hGold’s daily market briefing
  • Prices and data of precious metals in 119 currencies and world mining companies
  • Daily analysis of the economy, markets and more
  • Free, daily and indispensable
Stay informed, subscribe now !
* Your email will never be shared.