Easter Sunday is not a time when most of us focus our attention on politics -- which may be why it was on this day that Pravda-on-the-Hudson chose to publish in its Sunday Review section David Stockman's rant against everyone from FDR to Richard Nixon, Ronald Reagan, Barack Obama, and Ben Bernanke. When you get the time, read it and ponder its argument. It is, I believe, at least half-true. Here is a sample:
THE state-wreck ahead is a far cry from the “Great Moderation” proclaimed in 2004 by Mr. Bernanke, who predicted that prosperity would be everlasting because the Fed had tamed the business cycle and, as late as March 2007, testified that the impact of the subprime meltdown “seems likely to be contained.” Instead of moderation, what’s at hand is a Great Deformation, arising from a rogue central bank that has abetted the Wall Street casino, crucified savers on a cross of zero interest rates and fueled a global commodity bubble that erodes Main Street living standards through rising food and energy prices — a form of inflation that the Fed fecklessly disregards in calculating inflation.
These policies have brought America to an end-stage metastasis. The way out would be so radical it can’t happen. It would necessitate a sweeping divorce of the state and the market economy. It would require a renunciation of crony capitalism and its first cousin: Keynesian economics in all its forms. The state would need to get out of the business of imperial hubris, economic uplift and social insurance and shift its focus to managing and financing an effective, affordable, means-tested safety net.
There is one thing that I would warn you against. Do not take Stockman's advice, sell your assets, and store cash. Inflation strikes me as a greater danger in the long run than deflation. But judge for yourself.
The real question is the one posed repeatedly in recent months by James Grant -- to wit, whether the age of fiat money is not, in fact, drawing to a close.