Markets are panicking, Greeks are rioting, Hungarians are having conniptions, and the rest of the over-leveraged world is finally asking the question: when is it going to be my turn?
Meanwhile, the economics enthusiasts here at Latewire/InflationHell, as well as some of the actual experts have been notably silent. You may be wondering why that is (or you may be wondering how water-activated growable sponge animals work, but we're not going there so shut up). I think even some of the more famous soothsayers (who we plagiarize unabashedly) have been a little quiet lately on the bad reports (only today did Peter Schiff release something about it).
The reason why is that... well... what's there to say? The writers here as well as other believers in Austrian Economics have put enormous effort into writing essays, books, lectures, and even publishing educational videos on history and governmental fiscal figures. We explained why 2+2 does not equal 5, no matter how much the Fed says it does. We told you things were unsustainable, we told you the how and the why. You'll notice that some other economists/financial "experts" who were predicting a continued rally or recovery are either scared speechless or rationalizing/modifying their statements.
It dawned on me today, after a long night of heavy drinking, that there is one thing we should probably be reporting at this point.:
We told you so.
But don't worry, this is only the beginning. This is just the tip of the debt-crises iceberg.
Yes, we realize that these numbers are wacky partially out of fear and panic, and they'll wax and wane for a while as the changes set in. We also realize that it is extremely early in the decline, and that these "bumps in the road" are unpredictable in the temporal sense. Rest assured though, soon enough the people of these countries will finally realize how leveraged they are, that their standard of living has been a lie, and that now they and their children are going to pay for their mistakes with compounding interest for a very, very long time. At that point, you wont have to come to our website to view images like these, you can just look out your front window.
There have been at least two generations in the West who have gotten their entitlements on credit. What's worse is that instead of being viewed as luxuries they are being viewed as "rights" (which sets my low bar for how debased a concept can be). Now they've blown their national credit and no one will lend them the money to continue to live beyond their national means. In effect we will have to live throw a readjustment period where the contemporary citizen has to live with the costs of their social programs and their wealth destroying public policy. What we are seeing now is a temper tantrum of nations that have their credit cards cut or credit score downgraded and are unwilling to face reality.
BTW, Hungary is next. It turns out the books where cooked there to.
Sat Jun 05, 2010 7:41 pm There have been at least two generations in the West who have gotten their entitlements on credit. What's worse is that instead of being viewed as luxuries they are being viewed as "rights" (which sets my low bar for how debased a concept can be). Now they've blown their national credit and no one will lend them the money to continue to live beyond their national means. In effect we will have to live throw a readjustment period where the contemporary citizen has to live with the costs of their social programs and their wealth destroying public policy. What we are seeing now is a temper tantrum of nations that have their credit cards cut or credit score downgraded and are unwilling to face reality.
BTW, Hungary is next. It turns out the books where cooked there to.
Debtzilla
But when our frenemies start to call in our debts, we can just fucking invade them!
WIN
Sun Jun 06, 2010 11:56 pm But when our frenemies start to call in our debts, we can just fucking invade them!
Markets are panicking, Greeks are rioting, Hungarians are having conniptions, and the rest of the over-leveraged world is finally asking the question: when is it going to be my turn?
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