Three Little Pigs

The behavior of the market is simply the sum of the thousands or millions of individual decisions made by all the people playing the market. Were it not for the natural heard instinct of human beings, and the willingness to believe that the market actually means something, none of this would be of any consequence. To suggest that the market "should behave this way or that" is to buy into the idea that the market is anything more than a neighborhood of make believe, a game of monopoly.

The real wealth in this country, and anywhere in the world, is not in paper instruments issued by governments and central banks. It is not in silver and gold, which have only as much value as people assign to them. Real wealth is ingenuity, labour and natural resources - the raw materials required to feed, cloth, shelter, heal, and amuse human beings, the machinery of civilization.

Petty crooks steal money and goods which can be traded for money. Sophisticated crooks seize power over human beings and control over the machinery of civilization.

Ayn Rand famously said

If you ask me to name the proudest distinction of Americans, I would choose- because it contains all the others- the fact that they were the people who created the phrase "to make money." No other language or nation had ever used these words before; men had always thought of wealth as a static quantity- to be seized, begged, inherited, shared, looted or obtained as a favor. Americans were the first to understand that wealth has to be created.

Money was designed to simplify the process of trading goods. Money was a way of representing work done or goods produced. In fact, before money existed as such, everyone understood quite well the fact that "wealth has to be created". It was only with the invention of money that the understanding of "wealth" was lost. As the financial system has become more complex, money has become completely divorced from that which it represents. No work must be done, no goods must be produced in order to "make money" in the modern markets. Money itself is traded. If no work is done and no goods are produced, yet we continue to make money, our money is necessarily subject to the powers of inflation. We have postponed the inevitable outcome, the dramatic devaluation of the dollar, by moving it around so fast that it appears to be in many places at the same time. We have borrowed from ourselves, we have borrowed from other countries, and we have sold off assets to other countries, all in the effort of preventing the collapse of our currency and our economy.

We've built an economy out of nothing. We've build a house of straw. The big bad wolf is coming, and he's bringing his friends. It is time to let the banks and markets fall. Tear down the house of straw and build a house of brick on the firm foundation of the US Constitution and the greatness of its people.

When Chicken Little cries that the sky is falling, tell him to stop listening to the silly little pig who built a house of straw. It is only his straw house that is falling, and it shouldn't be our problem.