My goal in concocting this basic analogy is not to mock everyone's intelligence, it's to illuminate the specious construct upon which Monetary Policy is based and call to account our so-called Thought Leaders for attempting to replace a once thriving real economy with financial alchemy. Clearly, upon reading this analogous story, any 5 year old could have predicted that Monetary Policy was doomed to fail and collapse the economy:
I hope you enjoyed my stupid story, because guess what, as stupid as it is, "we" as a society all bought into it hook, line, and sinker. Imagine losing your house, your job and your savings all over the biggest line of bullshit ever told. Now that, is sad.
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Imagine you are out on a camping trip with a bunch of your friends. You all decide to build a fire. There are quite a few of you and you are all hard workers by nature so you gather up a ton of really good fire wood. The fire you build is massive. It's the biggest fire around. People from all of the other camp sites come to your camp site to see and enjoy the camp fire. They want to be part of your camp.
You gathered a lot of wood so the excellent camp fire burns long and strong, yet everyone is enjoying the warmth of the fire and the party atmosphere a bit too much, so much so that no one wants to get any more firewood. So, naturally the wood pile dwindles - at first slowly but then alarmingly quickly. Eventually a fight breaks out over who will get more wood, because now no one wants to be the guy out there in the cold darkness gathering wood, even though just the night before you were all out there happily gathering wood...
Along comes a guy that I will call Bob Byrne. Bob says stop fighting guys, no one needs to gather more wood, because I have some gasoline we can pour on the fire. Everyone is very skeptical, but Bob goes to his truck and comes back with a gallon of gas that he pours on the fire. All of a sudden the fire erupts. Flames shoot higher and the fire becomes bigger and stronger than ever before. Everyone cheers and thanks Bob profusely.
Eventually of course the fire burns down again, this time quite quickly. Everyone looks around nervously, what will we do this time? Don't worry, says Bob, this time he comes back with two gallons of gasoline which he pours on the fire. Again, the flames leap higher and everyone is happy and festive once again.
This time the good times are even shorter, so in desperation, Bob backs up his truck, takes out a fire hose and literally sprays gasoline directly on the fire continuously to keep it burning.
Alas, due to the lack of underlying firewood, even as new gas is poured on the fire, it continues to die down. Now everyone is getting really worried, because even Bob's gas can't keep the fire burning. So Jim points at Bob and says "what the hell is going on, why isn't your gas keeping the fire burning?"
Bob says to Jim, "well, gas can't keep a fire burning forever, eventually you need to add new firewood. My goal of spraying gas on the fire was just to keep it going long enough for you to get more wood."
"What? says Jim. You never told us that. We never got more wood. Not only that, we sold all of our axes, because we didn't think we needed them anymore".
Bob shrugs his shoulders, "Oh, I guess I should have made it clear that the gas trick is just temporary and that you still need firewood to build a sustainable fire. Looks like you are shit out of luck now. Sorry !". He then hops into his truck and drives off into the sunset, never to be seen again.
THE END
I hope you enjoyed my stupid story, because guess what, as stupid as it is, "we" as a society all bought into it hook, line, and sinker. Imagine losing your house, your job and your savings all over the biggest line of bullshit ever told. Now that, is sad.
