Tuesday, June 25, 2013

Ruling Class Without a Clue

What are we to think about the market falling out of bed after Gentle Ben Bernanke's hint last week that he might start tapering off the money printing operation at the Fed? Was it because the Fed is, in fact, following a dangerous deflationary policy, as Larry Kudlow writes? Given that gold and other metals are down 30 percent from their highs, Larry has a point.
Or was it nothing to do with the Fed, but instead renewed problems with the Euro? Or with the property implosion in China?
Probably the answer is: None of the above. The truth is probably the old one about Hollywood and how to produce a hit movie: Nobody knows nothing.
The truth is that governments are always like pitchers trying to pitch out of a jam with all the bases loaded. We the people want a little free stuff. The ruling class wants to seize and hold political power. Promising free stuff is how you get elected.

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