Thursday, September 27, 2012


Asian stocks rose as a drop in Chinese industrial profits increased
pressure on Premier Wen Jiabao to step up measures to support growth
in the world’s second-largest economy.

...various (and highly publicized) alterantive energy companies aside, which country has a more likely chance to engage in "malinvestment" given a stimulus package?  My guess is that any Chinese "stimulus" will enjoy the same efficacy and efficiency (and hey, since we are all Keynsians now, lets throw in "better money multiplier" too!) as aid to African despotic regimes.

Like Hayek said:

The popularity of inflation and credit expansion, the ultimate source of the repeated attempts to render people prosperous by credit expansion, and thus the cause of the cyclical fluctuations of business, manifests itself clearly in the customary terminology. The boom is called good business, prosperity, and upswing. Its unavoidable aftermath, the readjustment of conditions to the real data of the market, is called crisis, slump, bad business, depression. People rebel against the insight that the disturbing element is to be seen in the malinvestment and the overconsumption of the boom period and that such an artificially induced boom is doomed. They are looking for the philosophers' stone to make it last.

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