The Road To Weimar

Another week, another step closer to global serfdom.

In today’s DailyReckoning, we turn the stage over to the critics of the “print moneyand steal from the future” craze that’s taken over. All roads lead tosomewhere. But where?

Here in Australia, all the talk is whether or not Rio Tinto‘s Londondirectors are selling its Australian assets at the bottom of thecommodity cycle. This would contradict the axiomatic investment adviceof “buy low, sell high.”

But with the clowns who believe they’re running the global economy,a recovery in demand is getting further away, not closer. The G-7finance ministers met this weekend and the result was not encouraging.They issued a statement that read, “We reaffirm our commitment to acttogether using the full range of policy tools to support growth andemployment and strengthen the financial sector. The stabilization ofthe global economy and financial markets remains our highest priority.”

Right boys. You get right on that. Nearly twenty months since thefirst two Bear Stearns funds went belly up and policy makers are stilltripping over the neckties trying to figure out which ‘tool’ is thebest for the problem. The problem is not with the toolbox. The problemis with the tools.

Continue…

2009-02-20