http://www.lewrockwell.com/rockwell/reality-vs-state.html

Reality vs. the State
by Llewellyn H. Rockwell, Jr.

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So on it went for seventy years, until one day the entire hoax was exposed by the ultimate reality test: the market economy. Bad credit risks didn’t pan out. Those who lent without regard for underlying fundamentals are suddenly seeing red all over the place. Bankruptcy ensues. Those who purchased repackaged mortgages on the open market find themselves with a hot potato and no one to toss it to.

So what does the government do then? It runs to the basement and turns on the printing presses. It creates $37 billion on the spot and buys up the bad loans and calls them assets. The government says that this is to create confidence. But confidence can’t be created by making up reality. That path only leads to more illusion and error.

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Didn’t anyone think that “averting the crisis” was in and of itself a problem? Anyone still believe the gooferment’s core inflation rate numbers? Anyone not concerned where this runaway freight train is heading at full steam?

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