The power of III

Summum ius summa iniuria--More law, less justice
--Cicero.

09 August 2011

The Panic of 2011, and the response of our betters: You pay for it.

The crisis of the markets is as much a function of the European sovereign debt crisis as it is of American sovereign debt crisis.

The Chinese have high inflation, with 6.5% overall, and 14% for food items.  This will ripple out to the rest of the world that has Chinese products for sale.  Example: Wal-Mart. 

The market now expects the Fed to make another round of money printing, to be obfuscated under the title "QE3".  What does that mean for us mundanes?  Your dollar is worth less to buy "stuff" every time they print more of them.  Your same salary goes less and less far.  You are being squeezed without mercy for every bit of your labor to support the spending, entitlements, debt burden that you never wanted or voted for.


In Europe, things are no better for the average taxpayer:

...[European Central Bank head] Trichet just went ahead and sent the cavalry to buy another X billion worth of Irish 10 years to send a powerful message that European taxpayer capital will be used to purchase worthless paper that is cash flow bad, until morale improves.

(Emphasis added-HM)

Angry yet?

"For if the bulk of the public were really convinced of the illegitimacy of the State, if it were convinced that the State is nothing more nor less than a bandit gang writ large, then the State would soon collapse to take on no more status or breadth of existence than another Mafia gang. Hence the necessity of the State's employment of ideologists; and hence the necessity of the State's age-old alliance with the Court Intellectuals who weave the apologia for State rule." -- Murray Rothbard

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