[salawat]

>By acting in this capacity the government can allow the market price seeking mechanisms of capitalism to operate on an appropriately longer time horizon.

This makes it sound like the Market is primary to the State, where observation/history very much paints things as being the other way around. I don't know as one should even be talking about the Market doing anything in this case seeing as the preconditions for it's stable existence are coming into question.

[digitaltrees]

Thats a valid point, I am not suggesting the Market is primary in all things, merely the narrow function of price setting. In the US, the Market is primary for price setting in ordinary times. Very rarely does the US government set prices. You're right though, when push comes to shove, unstable market conditions such as War, financial panic, the Government has stepped in to mandate setting stable prices. Still it would be better if the government can create stable market conditions.