Economic Fascism and the Bailout Economy

Gary North reports:

I wonder sometimes if there is anything coherent remaining in what is generally called the conservative movement. Do any of these people have a clue as to what has been taking place? We are seeing the disintegration of the fractional reserve banking system all over the world. It is being held together by bailouts, which are the government equivalent of bailing wire and chewing gum.

The only thing holding the whole structure together is an enormous residual faith in the State and a naïve faith that deficits don't matter. That phrase is associated with supply-side conservatives and the vast majority of those people who call themselves Chicago School economists. Supply-siders said it, and Chicago School economists cautiously chimed in, "Someday, maybe deficits will matter, but not soon. At the margin – this year, next year, and until I am dead – deficits don't matter." It has been the Austrian School economists who have warned, decade after decade, that the increase in the Federal debt would eventually threaten the solvency of the government and the stability of the dollar. Now that this is visibly coming true, we still do not hear from professional economists cries of warning regarding trillion-dollar annual Federal deficits. They say nothing, except when they say it is a good idea, because it is necessary, because we have got to save the banks, because we have got to regulate the economy, and, most of all, because the unhampered free market system really does not work. This is what we are getting from people who have generally been known as free market economists. They are lining up as cheerleaders as the banks go to the Federal trough. The Federal deficit soars into astronomical regions, and the monetary base soars just as fast, yet the academic economists are silent. This is not the silence of the lambs; this is a silence of unindicted co-conspirators, most of whom teach in tax-supported universities and spend their careers writing unreadable articles in unread academic journals in order to get tenure, so that the taxpayers can never fire them. These people are apologists for the State. Most of them have been on a public payroll all of their lives. These are the people who, in the name of conservative free-market principles, are supposed to stand in the gap to warn us that the ship of state is going over the falls.

Don't hold your breath.

An article well worth your time.