On CNBC, like other establishment outlets, the commentators are running around like chickens with their heads cut off: Oh no, commodity prices are falling, retail prices are falling, house prices are falling, stock prices are falling. There is only one exception: hooray, oil prices are falling. Why? Because lower oil prices are seen as bad for Arabs, Russians, Venezulans, and other scapegoats.
In fact, lower prices are good (think computers over the last 30 years) and especially necessary now to reflect the new realities after the Fed’s destructive boom. They are also the one thing regular people get out of a corrective Depression, so naturally the Keynesian state and elites try to raise prices.
5:32 pm on December 7, 2008
