Unfortunately, the common American does not understand he is being manipulated and impoverished by the Federal Reserve.
When money is no longer real (i.e. fiat currency vs. gold and silver), then people may come to believe in the surreal, and a hyperreality emerges.
In particular, during the reign of Alan Greenspan, money and credit – created out of thin air – rained upon Americans as if to assure us that crop failures and misfortune had been banished from U.S. soil.
Hence, we came to live in a world of plenty where one may become wealthy by simply purchasing a house – with lots of borrowed money – and by "investing" in stocks for the long run.
What a dream it is to become wealthy without effort.
This mass delusion is only one step away from collectively believing that cotton candy is a cash crop.
Alas, Americans will soon discover that housing values don’t grow to the sky and that heavy mortgage debt leads to a harvest of financial despair.
The Austrian theory of the trade cycle will be validated yet again.
- Eric Englund, April 2006
April 28, 2006
Posted by blogger at 4/28/2006