“malinvestments on a massive scale”

That’s David Stockman quoted on zerohedge.


Just in case someone’s still under a rock, I thought it worthy of quoting.  The reason controlled markets (using the word “market” loosely) and liquidity-focused actions are detrimental, is because they lead to misallocation of capital.  We are currently living in times best noted for by far the grossest misallocation of capital in human history.  This is because neither technology nor the statist-sheeple mindset, have ever been nearly this extreme before, to engender it.

The underlying problem, of course, is absence of production.  But what shall a rational being do when his/her production, manifested as wealth, is so hugely misallocated in the only manner it can be…coercively, physically coercively?  Uh, he or she will produce less and whatever is produced will remain “closer to home,” as in directed toward pure survival as opposed to capital investment that will expand businesses and therefore benefit others.

That’s all.  None of this is rocket science and unless the thugs lay down their guns, this shall not end well at all, at least not for any existing societal institutions.  Of course, if we manage to survive, that may well prove to be a good thing.

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