Correct or incorrect, right or wrong, wise or foolish, informed or ignorant, smart or stupid, insightful or benighted – classical liberals and libertarians have none of the fetish for power that infects the minds and souls of so many people on the political left. And this fact alone goes a very long way to recommending classical liberalism (or libertarianism) over alternative ideologies. Indeed, fear of concentrated power might well be the single most important reason why persons become classical liberals or libertarians.

As with every crisis, investor opportunity is best when things look their worst and when uncertainty is high. We are here, and the time is now.

Euro-TARP almost mandates that capital be misallocated into non-productivity-enhancing government programs and debt. Europe is run by Keynesians (as is the US). They see everything as a liquidity problem. And sometimes it is. But the PIIGS have a debt problem. And you don’t cure a debt problem with more debt unless you have a clear path to grow your way out of the debt. But as I have demonstrated, there is no clear path to growth with the current policies. They will produce deflationary recessions, lower government tax receipts from reduced GDP, and higher unemployment.

Some day even the Wall Street bulls might come to question the rationality and sustainability of a monetary policy designed to rob from the future in order to puff up the present, but for the moment there seems to be no argument too spurious to be included in their talking points.