The money was all appropriated for the top in the hopes that it would trickle down to the needy. Mr. Hoover was an engineer. He knew that water trickled down. Put it uphill and let it go and it will reach the driest little spot.
But he didn't know that money trickled up. Give it to the people at the bottom and the people at the top will have it before night anyhow. But it will at least have passed through some poor fellow’s hands.
They saved the big banks, but the little ones went up the flue."
Will Rogers, 5 December 1932
I said yesterday that 'I have a hunch that gold and silver are being capped here for a reason. Maybe. It's hard to tell with the non-linear Fed.'
And today I think that things are becoming clearer, as suspected. The Fed needs to raise rates to cool down the economy, in a pig's eye. They want to raise rates for their own policy purposes, so they can lower them again when their latest paper asset bubble fails.
The common person may not understand all this, and the lessons from history. But the 'experts' most certainly should understand them, and quite frankly they do. They may not say so, they may never admit it, they may let themselves be convinced, and even convince themselves and quiet the nagging doubts, but at the end of the day they know exactly what they are doing, what they are abiding, what they are enabling if only by their silent acquiescence.
Then why do they keep pursuing the same failing policies, and try to justify them with wildly inaccurate forecasts and flat out misstatements of fact? Why do the wealthy prosper while the country as a whole stagnates, and for years?
Why do the politicians go all out to try and maintain things as they are, even though they can clearly see with their own eyes that they are failing the people whom they have pledged to serve by oath?
Herein lies the credibility trap. They wish to keep things as they are because, at least for them and their friends and cronies, the times are good, and for some wildly so. Innovation is risky, but the wrongheaded consensus of the insiders is safe. Insider do not speak ill of other insiders, and therein can keep their sinecures, their connections, and the camaraderie of the fortunate few.
They are caught between the age old Scylla and Charybdis of pride and profit. They fancy themselves to be exceptional, a credentialed elite, but the sad truth is that their conceits and self-delusions are as old as Babylon, and evil as sin.