David Stockman has written a blockbuster column full of obscure abbreviations, but fascinating data. He is doing an excellent job of exposing reality. You can read it here.

I am constantly trying to make the point that our economy is about real things. It is about building cars, and harvesting food, mining iron ore, and cooking meals. It is not about printing money. Money is a medium of exchange. It has no value. Its value only exists as long as enough people are willing to accept it in payment. It’s a confidence game. Throughout history, we have seen nations that thought they could just print more money to solve their problems. The result has always been the same. (also here)

Nevertheless, it is widely believed that creating money is the solution to economic problems, despite copious evidence to the contrary, as David Stockman points out so well.

Economic progress happens when people work, and produce. It happens when businesses are started, and produce things people want. It happens when investors can apply their investments to the most useful areas, and can have confidence that if they do well, their earnings will not be taken from them. (so they can invest again)

If you want to know why there is no economic progress, look at the Keystone XL pipeline, or the Polymet mine. These are but two examples of economic boons to two whole industries mired in obstructions. Keystone has been waiting over 4 years. Polymet was being raked over the environmental coals when I was an intern at the Minnesota DNR in 1979.

The Fed’s QE is a cheat and a fake. We should stop trying to fake our way to prosperity. Unleash the worker, the entrepreneur, and the investor. That is the economic engine of the nation.

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