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Paragraph of the Day, post-Christmas hangover edition.

By: Moe Lane (Diary)  |  December 27th, 2009 at 07:45 AM  | 

RESIZE: AAA

Although I suspect that the majority of the people reading this didn’t go as overboard this year on Christmas as they have in the past.  Anyway, Samizdata (via Ed Driscoll, in reaction to what was an atypically dumb UK Times article):

It may seem a Scrooge-like message for this time of year to point out that you cannot spend money that you don’t have; businesses cannot invest money that has not been already saved, and that interest rates must reflect the balance of supply and demand for savings. The “Austrian” economic insight that money is a claim on resources, and that two people cannot hold the same claim on a resource at the same time, needs to be relentlessly rammed home.

Because the alternative, of course, is to have objective reality do it for you. And the thing about objective reality? It’s rarely gentle.

Moe Lane

Crossposted to Moe Lane.

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  • wolfgang

    A 23 year old member of the “Religion of Peace” tried to blow up a plane containing 288 other living human beings, a goodly proportion American citizens, on Christmas Day to make a statement with explosives sewn into his underwear.
    The next time another attermpt will be made, the bomber will carry an explosive filled condom inserted in his rectum onto the plane.
    In a few days it will soon be business as usual in the Department of Homeland Security, after the furor wears off and the NYT damps down the discussion of this event. Janet Napolitano will order the placards containing her early statement “Its a warm, bright, sunny day in April, 2009. The War On Terror is over!” rehung onto the walls and hallways of her department’s offices.

  • rbdwiggins

    would be to thrust a dagger through the heart of Keynesian Economics, killing the theory forever.

    But no, the Democrats have decided to double-down, hoping for better results than history dictates.

    The cure:

    The best way to end a recession is to unravel the massive misallocation of resources caused by printing money as soon as possible, to let labour markets clear, to cut public spending and cut taxes, and where necessary, recapitalise banks speedily. (Check out this paper for a good course to steer). Such a process is inevitably painful. In the short run, the pain is worse than the sort of dragged out situation we have now. But ask yourself this question, dear reader: what is the more compassionate policy – a short, sharp recession and closure of failed banks, followed by a rapid 1921-like recovery, or a Japanese-style multi-decade of stagnation?

    Alas, the Democrats will never administer the cure.

  • RedBeard

    I suppose this is why the children, and adults with developmental disorders, who run our government are so hell-bent upon ignoring it.

  • http://www.veronicaestrada.com/ Veronica Estrada