Establish Truth

I'd like to quote Henry Hazlitt if I may. This may sound familiar. Written in 1959, it was already accepted economic truth:

"Keyne's theory of the crisis, like his theory of so many other things, consists merely in a contra-mundum attitude, a denial of nearly every doctrine that is 'orthodox' or established. If one truth concerning economic crises has been established in recent years, it is that they are typically brought on by cheap-money—i.e., low interest-rate—policies that encourage excessive borrowing, excessive credit-expansion, imprudent speculation, and all the distortions and instabilities in the economy that these finally bring about. It follows that such crises can be prevented by keeping money sufficiently "tight" so that credit expansion, reckless speculation, and hare-brained ventures are not encouraged in the first place. It follows also that when such symptoms of an inflationary boom appear, a timely increase in money-rates [interest] can prevent them from running too far, and dampen down the boom before it has run to excessive lengths."

Would it be too bold to bet that Obama, Frank, Pelosi, Dodd, Shumer, Reid, et al, have never read Hazlitt?

I guess Bernanke never has either, because he's still lowering interest rates, presumably to encourage excessive borrowing, excessive credit-expansion, reckless speculation, and more hare-brained ventures...so we can miraculously wildly borrow and spend our way out of this black hole caused by wild borrowing and spending.

They say when you find yourself in too deep....stop digging. No one in this government has apparently read that either.

The Gunslinger