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The new stimulus proposals are the least of our problems

Submitted by davidfarrar on Sat, 01/17/2009 - 09:16
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We know using borrowed money to artificially inflate the economy will not work for long. The economy will eventually react and find its own true level. At best, the stimulus packages will buy us some time and take a few unemployed youths off the street.

But what of the coming much, much greater deficits we face in the very near future?

 

 When we get to the point where you can't service our debit; we are finished.

ex animo

davidfarrar

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Comments

Thanks for posting that

Submitted by Paleo-Skeptic on Sat, 01/17/2009 - 22:47.

I've been wanting to see that movie.

One rock-solid economic principle is that debt amounts to future claims on productivity.  It would seem as if all the concern for growth is misplaced, as any growth we might have over the next several years already has claims on it.

I think the current plan is based on the greater fool theory, that other nations will experience even more exorbitant inflation which will make ours look not so bad. 

Yes, that's true.

Submitted by davidfarrar on Sat, 01/17/2009 - 23:25.

But while I was watching it, it suddenly occurred to me, "OMG, the government has done exactly what irresponsible individuals use to do with their money prior to Social Security", namely; spend all their money in their younger (surplus) years, while leaving nothing to live on in their older (deficit) years.

I think the real question we all have to ask ourselves is where is the leadership and where has it been for the last thirty years? Clearly, both political parties have utterly failed in their fundamental political responsible of addressing lone term issues of this magnitude. This, to me, is yet another indication that our two major political parties are not properly representing their own members' political aspirations.

 

ex animo

davidfarrar