Tiffany’s is having a good year. Bloomberg attributes the upscale jeweler’s success to a rising stock market and house prices. If you’re a Fed watcher, you know that the “wealth effect” is official policy.
Tiffany’s is also raising prices. That’s the inflation the Fed has been looking for. It is starting with the rich, logically enough. This really is trickle-down economics. Unlike the supply side boom we saw in the 1980s, the Fed’s beneficiaries are not creating any new wealth. They just happen to be nearer the monetary spigot.
There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency.
Now we have populists of all kinds – including the pope – calling for change and denouncing capitalism. The tragic symptoms are obvious, but is capitalism really the cause?
Lenin (and Keynes) knew that the quickest way to destroy capitalism was to debauch the currency. It automatically makes the rich richer, and it screws everyone else “in a manner which not one man in a million is able to diagnose.” Not even the pope.
Update: We wanted to tweak the pope over his misinformed attack on capitalism, but Matt Welch has done a better job. Writing in Reason, Welch notes that the political left, which normally dislikes the church because of its stance on abortion, gay rights, and evolution, suddenly loves the pope when he comes out against capitalism.