To Burst Bubbles or Not to Burst Bubbles, That is the Question
The poor fellows can't see the bubbles in front of their face, much less can control them. In fact, some of our dear Governors don't even want to try to identify them.
[Thanks to clusterballoon.org for the photo.]
Apparently, none of the distinguished Governors remembers the invisible hand and its role of the marketplace. They've never read Leonard E. Read's famous essay about the workings of that hand, how very astutely it controls progress with no apparent controller, as illustrated in the manufacture of as simple a product as a pencil, "the ordinary wooden pencil familiar to all boys and girls and adults who can read and write."
If individually we couldn't even invent a pencil, how can we control international monetary bubbles?
Nor do our confused Governors seem to have learned the lessons from history, those examples of how human elitists, believing they have the power to conduct human activity in a manner better than the invisible hand, have only managed to distort progress and thrown their societies into chaos.
Reading Governor Gary Stern's blatantly naive statements demonstrates to me how inefficient we are at controlling our own monetary policy. They don't know how to control bubbles, indeed can't even identify one when they see one.
Wouldn't you think that, having observed their own lack of expertise, they might proffer their resignations and recommend that we reinstate a more reliable monetary standard, one that has been shown in the past to control the amount of purchasing media circulating at any one moment through its own innate nature, thereby inhibiting the appearance of monetary bubbles?
No, apparently either (1) our Governors' lack of knowledge drives them to the opposite conclusion: If you can't beat 'em, join 'em; let the bubbles happen, and to hell with the devastating consequences on the pocketbook of the ordinary man and woman of society; let the speculators take the spoils; or
(2) their full knowledge of the situation is so synical that they purposely keep us confused so as to aggrandize themselves and those who put them in office.
NB: For those readers who are curious about my thoughts regarding the cause of our bubbles, I would direct them to read my earliest posts about money, the history of the gold standard, the state of our present fiat currency, the relationship between economics and government, and the use of monetary manipulation to increase government power.