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We are living Bernake's experiment. There are several schools of thought on the causes of the Great Depression. Bernake is of the school that thinks if Hoover flooded the market with easy money it would have been diverted.
3 years later..I think his experiment failed. All Bernake did was prolong the inevitable and at a greater cost. We are in a deflationary spiral; values are going down while the debt amount remains the same. Denninger is right in that everyone should be allowed to declare bankruptcy to "deleverage" the bad debt. But I think it's too late to return to BAU. Austerity will be the name of the game soon.
The debt won't go away by itself. It has to be purged..just like the Great Depression.
Wipe the slate and start all over.
Government is enacting "health care reform" today not to reform health care, not to provide health care, but rather to impose an immediate tax on all Americans to attempt to pull up even harder on the monetary stick.
It won't work folks. It can't work. More than 18 months ago I identified the primary failure in the path that was being taken, and why. We have tried it Bernanke, Paulson, Geithner, President Bush and President Obama's way now for nearly three years, and yet there has been no resolution of the debt problem, no resolution of the housing market and no actual economic growth. Instead we have papered over insolvency and lied about the health of both our banking and economic systems. (end)
as i said before, this is a desperate government running out of options trying to extort as much money from as many citizens as possible. they would have gone with the cap and trade tax, but the weather pretty much pushed it on the back burner, as well as strong public sentiment against it.
it is much easier to confuse people with a "benefit", even if you are only promising it down the road (kind of like social security), but spending the money now.
the euro crisis is getting worse, not better, as well.
Today the Democrats are staking the federal government as THE central business unit in this country. Whatever this country does, whatever some small business does everything will be tied to government direction. If it fails, the government will soak up the cost. If it succeeds government will rake in the profits.
Should the Democrats maintain control after November then any small or big business person or any company will be function of government. Just try to tell it otherwise.
the analogy is to keep a stalled economy from crashing, which isn't an "economic" analogy. you might want to read the actual article before commenting.
i think the charts give an adequate explanation of where we are heading, which is why they are posted.
Today the Democrats are staking the federal government as THE central business unit in this country. Whatever this country does, whatever some small business does everything will be tied to government direction. If it fails, the government will soak up the cost. If it succeeds government will rake in the profits.
Should the Democrats maintain control after November then any small or big business person or any company will be function of government. Just try to tell it otherwise.
i seriously don't think they are thinking that far ahead. what government ever thinks ahead? they are not at all concerned with the long-term consequences of destroying the private sector.
We need to have a credit collapse and a cash explosion. We need cash in the privet sector. That is in everyone's wallet. and tax the heck out of debt. Shift the tax burden from income to the payment of interest on debt. If you default you don't owe the tax either.
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