We Have No Money
June 7, 2010
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Posted by Michael S. Langston
This is one of those cases where it’s almost as if the planets aligned perfectly to show anyone willing to see the complete idiocy of our current economic policies. In the midst of a recovery that is anything other than certain, a time when the US government, its citizens, and indeed larges swaths of the world are simply broke, yet we keep on spending.
The Federal Reserve Chairman has stated directly (here via Reason.com):
Today may be terrible, but tomorrow is going to be much worse, at least as measured by such metrics as deficits, debt, and entitlement spending. In an April speech, Federal Reserve Chairman Ben Bernanke laid out the misery that awaits us. “The arithmetic is, unfortunately, quite clear,” he said. “To avoid large and unsustainable budget deficits, the nation will ultimately have to choose among higher taxes, modifications to entitlement programs such as Social Security and Medicare, less spending on everything else from education to defense, or some combination of the above.”…
Yet just yesterday, the committee to reduce budget deficits is joining a long line of other government employees in asking for more. Over @ Cato (here):
It’s rather symbolic of what’s wrong with Washington that a commission ostensibly created to promote deficit reduction is seeking a bigger budget….
Yep, that’s correct. As private businesses have continued to contract to meet decreased demands, the federal government continues to grow. This happens when the federal government is allowed to print money, but that’s a side note.
Simple fact is, we have no money, yet we are still spending like drunken sailors and it seems we don’t understand. When the governor of New Jersey is forced to tell people directly: unlike the US government, the state of New Jersey can’t print money, we’ve run into a major problem.
& like most problems, the federal government will not help. They are the enemy of spending policy as we can easily see, but for those that think maybe they can help here… please watch their latest commercials for the census count and ask yourself what is they underlying theme? On the government’s own website propoganda, what is the underlying theme?
What is the main thing they want you to take away from this? That government is the answer. Our leaders are telling us, in no uncertain terms the same unsustainable and morally questionable hypothesis: Make sure you get counted…. so you too can get paid.
Maybe it’s time to start asking: exactly where are they leading us?
Categories: Critical Thinking, Economics, People/Blogs, Political Philosophy, Politics
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Tags: Cato, Deficit Spending, Economics, government spending, Reason.com
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It seems to us the fact that the regular citizen is basically no a whole lot worse off versus the actual US government nevertheless the united states government can get to play by separate policies. The authorities could certainly tackle their own financial debt by generating moolah and their particular debt negotiation practices are protected by means of the strongest military on earth.
All of that’s true, though it’s not completely sustainable. Our military seems like the paragon of virtuous upstanding soldiers defending freedom in far off lands… and while that is true, getting paid helps. & if their paychecks become basically worthless because the rest of the world is no longer confident… well, that’s a problem.
Though note that I only wanted to make the point that the military can’t be a catch all in any given situation. I do not believe for a second that we are anywhere near such a calamitous consequence, though we are continuing to head down that path.
Roman history would be instructive… actually, skip Roman history, just look at what happened in Russia in the 1990′s when the government stopped paying their soldiers. One of the most powerful and most secure nations on the planet due to their very strong military, became an open market for any arms dealer as high ranking officers and grunts alike went to find a new source of income.
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