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The “market failure”

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Says Sarkozy:

The idea of an all-powerful market without any rules and any political intervention is mad. Self-regulation is finished. Laissez faire is finished. The all-powerful market that is always right is finished.

Socialists of all stripes are of course rejoicing at the current bail-out antics. Unfortunately for them, it is yet another nail in the coffin not of the market, but of the idea of a “third way”. There is no third way. Central Banks + Fiat Money + Fractional Reserve Banking + Government Regulating + Government Subsidizing + Socialist Redistributionism through semi-market Institutions = recurring financial crises.

It is beyond me how anyone could call government-controlled money supply and a heavily regulated fractional reserve banking system with unregulated investment banks jumping in the gaps “laissez faire”. Unless you call letting government fuckups continue indefinitely “laissez-faire”, or perhaps, the unfolding of events in the world without ever increasing government power “laissez faire”.

The market does fail in one regard though: It does not understand itself and it is unable to defend itself. It is too decentralized to present a powerful defense, and the government-bureaucrat union members of the academic world nor the big business crooks are up to the task. The playing field is open for left-wing demagogues to take control. The 21st century USSA are one step closer.


Written by cultured ape

October 1, 2008 at 2:21 am

Posted in Uncategorized

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