The Berlin Wall fell in 1989. The entire constellation of communist fascism collapsed two years later in 1991, when the Soviet Union fell, the final domino in a "discredited theory" (to liberals) that proved so startlingly accurate and swift, even its greatest proponent, President Dwight Eisenhower, would have been stunned.
The Dow Jones Industrials in 1989? 2,250. The Standard & Poor’s 500 in 1991? 300.
Why are we told we should be fearful when pint-sized bully republics (I use that term loosely) like Cyprus or Greece fall victim to the consequences of their own statist stupidity? Why do we tremble when analysts suggest China's economy might collapse? For Pete's sake, Russia had Potemkin villages. The Chinese have Potemkin megalopolises! (Megalopolii?) To make it worse, these empty cities built to house millions are connected by bullet trains that carry no passengers. Meanwhile, Chinese bureaucrats and their fawning Western admirers coo over arrival times.
How is this incredible misappropriation of wealth and initiative beneficial? Or its demise harmful? The same statisticians and spokesmen who worry about internal rivalries in China are the ones who bemoan products made from that country adorning the shelves of American retailers and shopping centers. Only the traditional compliant mainstream media would allow such a crass double-sided viewpoint.
Don't be distracted by a few disgruntled rioters and depositors who dominate the screens of the news outlets. In the long run, this is all part of the prolonged victory of capitalism and markets over statism and central planning.
Here in America with our mobility of capital and labor, such transitions occur swiftly. In fact, they occur before the serious problems caused by misallocated capital can really develop into major social unrest. People and money just pick up and leave: Detroit rots, deservedly; and Houston booms, deservedly.
In other regions where the process is slowed by a nanny state, obsessed with their own importance and hell bent on preserving itself, it does take longer for old industries to fade away and new ones to emerge. Yet it is occurring. Look at the Indian cities of Mysore and Bangalore — high-technology centers that can easily hold a candle to Seattle or Boston as a locus of initiative and entrepreneurship.
Don't think for a moment that such a worldwide paradigm shift can be stymied by a few third-world bureaucrats who make it harder to use an ATM. As if this is the first time capital has been seized by government forces for budgetary or political reasons.
Oil companies have lost fields and refineries. Pharmaceuticals have lost patents and markets. On and on. In fact, that is exactly what these companies have done — moved on, leaving bureaucrats in the dust as their illegally obtained farms and factories deteriorate and rot.
Back in the late 1960s, college students discovered anti-war demonstrations as a rite of spring. In the last few years Europhobia has enthralled markets from the equinox to late August. The latter shall pass as surely as the former did, once the draft was repealed.
Cries of "wolf, wolf!" need no longer spook investors.
Instead, take some advice from Glinda in The Wizard of Oz. Close your eyes, click your heels together three times, and say, "No one cares about Europe! No one cares about Europe! No one cares about Europe."
Then wake and find the value of your portfolio up 55 percent, which is the gain in the S&P 500 since prices swooned in 2010 from the first scares from economists in Brussels.
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