Authored by Bill Bonner via DailyReckoning.com,
We begin this week’s perambulations with a stroll into the future.
So far…the Bubble in the US is broader than any in history. It has been inflating everything it touched for the last 30 years.
All bubbles pop, of course. How they pop is the confusing whirlwind we enter today.
But don’t worry. Even in the worst crash, real wealth doesn’t disappear, it just changes hands. When the stock market goes down, those with stocks have less paper wealth…and less of a claim on real wealth. They are ‘poorer.’ That leaves those without stocks relatively richer. They have a bigger claim on the real goods and services the economy produces.
The feds and their elite cronies have a good racket going…diddling markets so as to shift more and more wealth away from the public and towards themselves. They own most of the capital assets…and they control the US budget. Pressuring interest rates lower, and backing up the stock market with bailouts and ‘put’ options…they’ve gotten richer and richer. As we saw last week, at today’s prices the stockholding class can theoretically buy twice the GDP…and have $10 trillion left over.
It wasn’t capitalism that made them so rich; it was a corrupt money system. And if the dogs of capitalism were unleashed, they’d have their fake money fortunes for dinner. Interest rates would be set by honest savers and borrowers — not by Fed policy decisions. Prices would be determined by buyers and sellers; the budget would be balanced; the debt would be cleaned up; the troops would come home; inflation w
