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Eleven trillion and counting
Thursday, March 26, 2009
In case you didn't already see this the other day - you can watch the whole thing online now. Greg Ip of The Economist, David Wessel of the Wall Street Journal, and others take aim at our profligate ways.
4 comments:
The problem is well-known (by now). But of course those in power are still in denial, and people refuse to accept the full meaning of it all. It's always the government fault in the US.
The fix will be simple, and it will come.
The first stage of reckoning has happened - there is no more borrowing for the consumers, and for business. The private banks have gone bust. Soon, late 2009 or early 2010, there will be no more borrowing for the federal government too. Then there will be massive budget cuts, massive tax increase. And if the government prints money to pay for the shortfall, there will be massive inflation, meaning all those essential imports will be unaffordable. The good life will be no more. National assets must be sold to raise money.
That the above can happen, will happen, is no mystery. Because it has always happened to other countries who mismanaged massively. Nobody has ever escaped it.
So the fix is in. It doesn't matter what Obama economic team does because it is much too late. This is how America, like so many failed states of the past, pays for the debt.
Oh yes, there will be blood. That also is guaranteed. Sorry.
Since there is no way in hell that this money gets paid back, it's either debase the currency or default on the debt.
The former is the much less painful alternative, at least in the short-term.
So how did the American Socialism of the last half century turn into much more than a gratuitous smear on both Bush and Reagan? Other than it being public teevee, that is.
Not to turn this into a argument about politics, but seriously, how does an utterly runaway social entitlement mentality in DC by way of nearly wall-to-wall Democrat congresses turn into a wholesale indictment of "conservatism"?
Dunno
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