In honor of this great trend I now present some real 2010 classics:
- Quantitative Easing - Printing Money. This phenomenon originated in the US Federal Reserve. Whenever the Fed wants to print money to buy up excess mortgage debt or US government bonds, or to "create liquidity" they engage in "quantitative easing". In order to do this Mr. Bernanke orders billions of dollars (which did not exist before in any way, shape, or form, and are not backed by any tangible assets) to be printed or electronically transferred to the banks in question.
- Liquidity - People being able to buy stuff. Usually this means the ability of people to shift goods and services by purchasing them; it is a term which defines potential asset shifts without excess transaction costs. Nowadays it is the ability of people to fork out money which they don't have and buy a lot of things they don't need in order to "drive the economy".
- Investing - People spending money. Nowadays deflation prevents so-called "investing" because it causes people to save. This is exactly flipping the economic theory upside down. People who spend cause interest rates to go up and thus make investments harder to finance. People who save make the interest rates go down thus allowing investing to take place. A classic 180 degree Newspeak switch!
And then there is the all-time classic which I have talked about extensively on this blog:
- Freedom - Having the right to do exactly what the government says you should do. This one is pretty self-explanatory. Crazy TSA airport searches, wiretaps in homes, tracking devices on cars, assassinations of own citizens by governments. All done in the name of new freedom.
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Maybe 2010 should really be called the real 1984? Remember those words in that great novel, where Orwell writes "Then the face of Big Brother faded away again and instead the three slogans of the Party stood out in bold capitals:
WAR IS PEACE
FREEDOM IS SLAVERY
IGNORANCE IS STRENGTH"
He was onto something, wasn't he?