Open your eye's doubters. What you are witnessing are the death throes of our economy. Keynesian economics is a fundamental failure. You cannot borrow money to pay bills and expect to fix the economyAND payback the debt - plus interest. The economy would have to grow at a rate never before experienced - an unachievable rate with substantial inflation - in order to pay back the federal reserve bank and every other "lender". The economy is so large that war can't even keep it going. It will collapse. It is a mathmatical certainty. The numbers don't lie.
After stepping back and looking at this entire fiasco we call an economy from a different perspective it became painfully clear. Allow me if you will. The world won't end because the economy collapses. Agreed? People will still survive and government will flex it's ever increasing muscle to assure that it stays in power regardless of the circumstances - even if it means suspending the constitution and individual property rights. Now let me pose a question. Do you really think the government is concerned about paying back borrowed money? Why would they be? Think about it. What is the last thing that many people do just before they file bankruptcy? They run up their credit cards like crazy! They buy new cars! They eat out every night! Why not? They know they will never have to pay it back. Our government knows a fiscal calamity is inevitable. When it comes, they won't have to pay back anything. Federal, State, AND local. Yes local. Imagine for a moment a brand new school that would rival the Taj Majal that no one would ever have to pay for. Ok we commit a few token millions of dollars, go to bond for several million more, and the state commits tax dollars to pay for the rest.....then the economy collapses. Local governments will rush for protection under bankruptcy laws and all or portions of debt will be forgiven. BUT..they will still own the building. That means they have collateral when the new economy kicks off. Collateral to secure new loans that pave the way back to another round of government irresponsibility.
You're probably right. Makes sense. They will never learn.
ReplyDeleteand bo wants 1.2 tril more. yikes!!
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