Back to Basics (like shoveling gravel, but has to be done)

“The housing bubble could not have arisen without the Federal Reserve. Had people started buying houses at unusually high rates, banks’ loanable funds would have begun to deplete, interest rates would have shot up, and that would have been the end of it. That would have discouraged any additional speculation in real estate. But Alan Greenspan and the Fed could create money out of thin air, thus giving the banks more to lend and driving interest rates down, thereby perpetuating the destructive bubble in housing.”

“And, do I really need to type this? (OK. I guess I do, given what President Bush on steroids Obama is doing.) Economic progress comes from capital accumulation; not spending. Read Dr. George Reisman’s brilliant essay on that here.”

Building Blocks in the Possible Future Rebuilding of America. Will Americans grasp this and hold others accountable to it…to be honest, I have more often than not become side tracked away from these dry tuisms…and look where we are now. A few days ago, I remarked if any ‘conservatives’ were capable of setting forth the tenets of rebuilding a system that seems destined to melt or rot. The Paleo Blog often has ice cold, splash your face with reality nuggets of clarity….you know what I am trying to say….  

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