Wednesday, February 9, 2011

The State of the world's economy.

The world's economy is not well; it has probably never been, but this time it is really sick. We live in a world of debt and easy money financed by Central bankers. In such a world, governments can finance their spending a low interest rate to insure the careers of politicians while pampering to the needs of the welfares addicts classes. In our world, those who get the money first, that is big banks and big corporations, get preferential treatments owned to their closed connections with the State while the average individuals, the small businesses are made to carry the burden of taxes and heavy regulations. In our world, the price signals are distorted, transformed into deceiving instruments monopolized by the State to bailout the insiders.  It is an understatement to say that our world has rejected the basic laws of economics, the values of sound money, and free market as a whole.
Now, all fools are not created equals and some Nations are faring much better than others. The US as an example has been plundering the world economy with its Statue of issuer of the world's reserve currency for many decades now. With such a power, why not engage in all sorts of extravagant spendings and military adventures given the fact that more than 6 billions of people are tied to the dollar in their international exchange. The reverse effect of such policy has been the destruction of the US manufacturing base and the gradual impoverishment, through inflation and low paying jobs, of the American society. As a matter of fact, the FIAT dollar has served the US state very well and made its agents very powerful and wealthy; but on the other hand, it has destroyed the standard of livings of the average American family.

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