Something Has Happened

The world’s economies are imploding. Not that it makes much difference now, but I ask myself, “Did it start with the housing bubble in the U.S.?” Did the insane policy by our government forcing the banks to lend to people who never had a prayer of paying it back result in generating of so much publicly traded toxic paper that it ended up compromising currencies world-wide?

If so, how long will it take for nations around the world to start pointing fingers stateside? Has their reluctance to do so been due to their own disregard of economic principles? Clearly, the integrity of the dollar has been hurt. So far, the banks have absorbed all the blame. At what point will banks drop the pretense and tell what really happened? That what they ended up doing was in response to existential threats from our political class who urged them: First, to continue lending; and, second, to deal with the fallout creatively in anyway they could - short of naming names, of course. As long as the current crop of political elites remained in power, banks were assured, they would be protected. And the banks played the game.

Market signals are oracles. Oracles have no reason to lie. Their integrity is impeccable. Only men can twist the veracity of said signals to suit their own designs – or to ignore them entirely. The rising price of gold, the instability of equity markets, and chronically high unemployment all expose the slight of human hands and the effort to achieve something outside the realm of possibility. Oracles are blunt. They scream the truth amidst the blizzard of whispered lies.

Incompetence? I hardly think so. The oracles are screaming louder. “Name the culprits!” they scream. “Understand their motives!” As the Obama administration (through its mouthpiece, The New York Times) continues to advocate a doubling down on failed policy, we can almost envision the pillow being lowered over the gasping head on the sickbed. Death panels. Rather than taking the screams as proof of potency; rather than taking the oracle’s screams as a warning; the screams must be stifled at all cost.

Last night there was an earthquake off the coast of India. At one thirty in the morning the birds awoke and went nuts. In Chennai, it was a pleasantly balmy night and air conditioners were for the most part turned off - windows open. It took most people till sun up to find out that something had happened.