Sean Corrigan, of Diapason Commodities Management, outdoes himself this week. At one fell swoop, and in his usual eloquent manner, he dismantles Krugman's Keynesian war-mongering, Bernanke's bafflement at a lack of recovery, Trichet's stable instability, and Hildebrand's god-like control of markets. Quite a read for a Sunday afternoon.
Spare a thought for the ineffable Paul Krugman who was musing only the other week that what America needed was, if not quite a war, then certainly a good, old-fashioned war scare, to dissolve the few remaining constraints to unsound finance and ruinous inflationism.
Though it has elicited a great deal of last-ditch optimism among the Polyannas and Panglosses that it will soon usher in an asset?boosting surge of intervention, the Chairman’s two most recent takes upon the economic outlook struck this observer as being a great deal less arrogant and cocksure than were his offerings the same time last year when he launched his ill?advised second programme of quantitative easing.
Mais, oui, M’sieur Trichet! You may have delivered price stability by your own narrow lights, but yours has ultimately been the stability of a coma patient, hooked up to a ventilator and a heart monitor in the ICU of the local hospital. Indeed, in the case of the browbeaten Irish, it seems that you are even the one who inflicted their injury.
Did no-one stop to think that a little re-adjustment might be useful in a land where a Big Mac cost—at the franc’s brief peak—125% more than it did in its home territory, or where—even in the least pretentious establishments—beer was selling for at least double the UK price?
And while the 'unpalatable good sense' of Andrew Mellon's 1930s liquidate-it-all speech may be an extreme response, Sean's description of the current meme seems just as incredulous to many:
‘…liquefy labour, liquefy stocks, liquefy farmers, liquefy real estate…when people get an inflationary brainstorm, the only way to get it off their books is to prevent its collapse… to preserve the rottenness in the system. High costs of living and high living must not be allowed to come down. People will have to spend harder and hang the moral life. Values will be arbitrarily adjusted from on high lest enterprising people pick up from less competent people…’