- By Bill Bonner
What would the world do without well-intentioned, earnest and intelligent public servants like Hillary Clinton?
We don't know. But we'd like to find out!
In the meantime, the Dow fell another 127 points yesterday. Shanghai stocks took a big dive, 8%. Gold shed $4. Oil slid further, to $47. The world is still falling apart.
What's going on? The feds' easy money is creating hard times. It led to over-consumption...then over-production...and now to a big bust. Just what you'd expect.
And what you'd expect next is more crashing, sliding, and busting up in the world's markets...followed by more easy money.
Eventually, all this easy money will explode into consumer price inflation. But that could still be far in the future.
Back to Hillary...
We keep our political coverage balanced, here at the Diary. On the Republican side, there is an unusually rich assortment of fools and knaves. And on the Democratic side, there is the aforementioned Ms. Clinton.
We don't know what we would do without her.
How would we know, for example, how long we should hold an investment without her to tell us? She seems to believe that today's average holding period is too short. It causes an obsession with short-term results that she calls "quarterly capitalism."
Meanwhile, Clinton said she would change the tax code to eliminate incentives for CEOs to be paid based on short-term bumps in share prices, with the aim of encouraging leaders to plan more strategically for the future.
Clinton also took on what she called "hit and run" shareholders - activist investors who pressure corporations to jack up their share prices or pay more dividends to investors, even if it doesn't help the company in the long run.
Some liberals were disappointed. "Working to end short-termism on Wall Street will definitely help working families in important way," said Democracy for America executive director Charles Chamberlain. "But let's be really clear: The Democratic Party doesn't want, and the American people don't need, another Democratic President who tip-toes around Wall Street's insatiable greed."
These questions leave us panting, sweating...and in need of a drink.
All Ms. Clinton knows about capitalism is what the cronies tell her when they are slipping her cash. Wall Street is a major contributor to her campaign funds. They know she can be bought. She won't disappoint them.
Of course, she still has to grandstand for the benefit of the Democratic masses. But she's clearly on the side of the cronies and the zombies. And they both hate capitalism.
Why? Because capitalism is a zombie-killer. Capitalism is not a wealth distribution system, as George Gilder makes clear. It's an information system...a knowledge system, in which entrepreneurs take risks and find out what works. They learn how to build better things...putting old, zombie manufacturers out of business. They figure out how to cut costs and increase too - squeezing out the cronies and forcing the zombies to get to work. They discover the knowledge that makes us wealthier.
Naturally, the zombies and cronies always try to put capitalism out of business. Typically, their candidates claim to be 'improving' or 'saving' capitalism from itself. What they are really doing is saving the crony lobbyists and zombie voters from real capitalism.
Bill Bonner is the President & Founder of Agora Inc, an international publisher of financial and special interest books and newsletters.