Article One: U.S. Stocks Drop On Growth Fears
Article Two: Bernanke, Obama Agree Economy Is Strengthening
Let’s see…we’ve got “War is peace”, “Freedom is slavery”, and “Ignorance is strength.” Maybe it’s time to add “Stagnation is growth”?
In all seriousness, I kind of think these two are related more than just at what meets the eye. I’m willing to bet Obama and Bernanke are spouting this precisely because they’re worried about confidence in the market. It won’t help in the end. The lack of confidence is just a symptom, not a cause, and trying to treat it is just futile.
One or Two, both are econmically ignorant. A flight to strength would be a flight to Gold, Silver and Platinium. But gold is up only $2.40 and silver is down. But as one of the pundits on CNBC said: “The gold market is tired.”. I guess the silver market must be exhausted.
Face it neither the market pundits nor the administration know what is going on because all the parties here are choosing to see the growth while ignoring the inflation. It is the “Emperor has no clothes” Economics Style and it is getting worse. Face it, even with oil spilling into the Gulf of Mexico hurting the production of oil there as well as the delivery of it to the central United States, the price is going DOWN! during the highest driving time of the year.
Fortunately we have Austrian Economics that teaches us the new money, old and new bailouts, bank failures and subsidies are only making the situation worse. Malinvestments made during the boom are failing and no amount of theft can keep them going. So Obama, Bernake and the WSJ are only spectators of a slow crash.
I have never seen 1984 becoming as true as I have seen lately in the economy. And I have never seen Brave New World becoming as true as I have seen lately in our society.