Sado-Economics for everyone; or Let's go over the Cliff!

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Here's an interesting article about "sado-economics", which is the use of economic policies to punish a particular group or class. Of course, it usually results in the destruction of everybody's wealth, except sometimes for a small favored elite. The author argues that going over the Fiscal Cliff would be a very unusual form of sado-economics in that it would have an overall beneficial effect for the economy as a whole.

http://prudentbear.com/index.php/the...w?art_id=10744

[lektrode]

Re: Sado-Economics for everyone; or Let's go over the Cliff!

....The author argues that going over the Fiscal Cliff would be a very unusual form of sado-economics in that it would have an overall beneficial effect for the economy as a whole.

http://prudentbear.com/index.php/the...w?art_id=10744

+1
nice find
even better argument.

Meanwhile, if the "fiscal cliff" occurs, Ben Bernanke will be buying over $1 trillion of Treasury and Agency bonds annually to finance a budget deficit that is only around $300 billion. This will almost certainly cause inflation to kick up. That in turn will cause Bernankeism to collapse and interest rates to be increased, probably by a new Fed chairman after Bernanke's resignation, to a level that allows the rebuilding of America's savings base. The U.S. economy will no longer be dependent on dodgy Chinese oligarchs for its financing, but will become once more self-sufficient and prosperous, with plentiful blue-collar jobs created by the new domestically deployed capital.


There is however an excellent sado-economic reason for conservatives and other free-marketers to welcome the fiscal cliff. The voting public have for the last four years received $1 trillion more in government services than they have had to pay for. Much of the extra $1 trillion is waste, fraud and abuse, but it's impossible for even the government to spend that much money without providing the populace with some benefit. Normally, even the doziest voter would appreciate that such deficits would require to be repaid,

(but then we have the financial class' mouthpiece/cheerleader MISleading (some of) us into believing this is a good thing?)


but in the last four years Ben Bernanke has been financing them through bond purchases, having forced interest rates down below inflation so that the deficits are financed at a negative real cost. It should not thus have been surprising that on 6 November an electorate receiving $1 trillion worth of free goodies annually demanded more of the same.


The fiscal cliff stops this. It forces the electorate as a whole, not just the "rich" however defined, to pay more or less the full cost of the government bloat it demands. Over four years, this should prove highly educational. And if to some extent it also proves painful, well for conservatives this will be a just recompense to the electorate for subjecting them to four more years of President Obama and his policies.


As I said, it's sado-economics. In general in past centuries this technique has successfully provided the pain, but has proved economically damaging to the economy as a whole. But in this instance it is irresistibly tempting, and as outlined above will almost certainly benefit everybody in the long run

thats been my position all along: KRASH THE MARKETS AND LETS GET IT OVER WITH!
then prosecute the criminals inhabiting lower manhattan that have taken over Our Government

tell me just how this will hurt the working class? (any more than their (the financial/political aristocracy) criminally negligient policies already have)

i may be a finance neophyte, somewhat ignorant/redneck/kinda-rightwinger - but being self-employed necessitates keeping my eye on the ball, NOT the distractions that the lamestream media insists upon thrusting into our faces on a daily basis

[doom&gloom]

Re: Sado-Economics for everyone; or Let's go over the Cliff!

unfortunately it looks like more 'spend & pretend' -- spend more, pretent we will take in more tax revenue.