http://www.creditmenow.info

1.) Attempting to run an allegedly “capitalist” economy on “credit,” instead of on _CAPITAL_. The current “creditalist economy” fallacy extends all the way up to the Fed itself, which attempts to “create” the “currency supply” (note that Federal Reserve Notes are _currency_, NOT money!) by “loaning it into existence.” Nearly every “central bank” in the world systems is a giant Ponzi Scam based on unsecured debt.

2.) A tax and regulatory system that sets up perverse economic incentives by punishing individuals and institutions for saving and investmenting — which are the _true_ sources and wellsprings of Capital — while simultaneously rewarding them for spending themselves into debt.

3.) A Gov’t whose officials systematically distort nearly every economic statistic that they publish (AKA “adjustments”) in order to make the state of the economy look systematically better than it actually is. Prices are signals, and Marketplaces are information exchanges. Systematically send buyers and sellers false price signals and the Marketplaces false information in the false belief that doing so will “Bolster Consumer Confidence” and “Guarantee Sustained Growth,” and you will inevitably see malinvestments and bad business decisions arising from that false information.

Many politicians and policy wonks keep falsely attributing the current financial crisis to a “Lack of Confidence.” But the Marketplace is not “Tinkerbell;” it runs efficiently only when buyers and sellers are presented with TRUE INFORMATION, not propaganda and contrafactual “beliefs.” The Market will NOT magically get better if we all just clap our hands and say, “I _DO_ believe in the Fed! I do! I do! I do!”

The “bubbles” and crashes in the Market will continue to be enormously exacerbated as long as the Fed and Administration officials continue to send false signals to the Marketplace, by persistently confusing “spending borrowed currency” with “wealth creation” and systematically “adjusting” economic statistics toward the “pollyanna” direction.

In summary: If someone tells too many lies to too many people, and they keep telling lies long enough, sooner or later SOMEONE is going to get badly hurt by those lies (preferably the liar). Sadly, the people who are getting most of the blame for their lies right now are the second-order liars, not the first-order liars. (The first-order liars are instead being rewarded for their lies by getting handed enormous increases of power, plus huge piles of “borrowed” (i.e., tax-extorted) “bailout money” to hand over to themselves, their friends and their cronies.)