Already, most of the big banks in Europe and America are probably insolvent. Without artificial support from the authorities, they would probably be unable to survive a crisis. Trouble is, the authorities have no real support to give. Most of the nations of the developed world are insolvent too.Governments borrowed to pay for grandiose, juvenile schemes. In the U.S., the dynamic private sector was deprived of cash and every negative aspect of resentful black culture subsidized and protected, all with results that are simply a disgrace.
The uber-liberal political class thought they could ignore human nature and ride the rainbow pony into the sunset. If a few constitutional protections got trashed in the process, well, the goals were ultra noble and what matters but the nobility of it all.
Apart from the secondary costs, such as crime and urban devastation, it turns out there was an actual price tag. Eventually actual numbers got recorded in the ledgers. The numbers said, "Game over."
Depending on a lunatic uncle to come up with yet more loans turns out to have been a bad idea.
Mr. Obama and each and every Republican candidate for president ought to be talking like Ron Paul talks. It's a measure of our predicament that Paul is the only one with a sense of urgency about subversion of the Constitution and the danger of a central bank.
"Unsolvable insolvency." By Bill Bonner, The Daily Reckoning, 1/18/12.
2 comments:
"... sense of urgency ..." The main sense of urgency in Washington DC is to get as much money out of the gold mine before the rotten timbers cave in.
"My choice early in life was either to be a piano-player in a whorehouse or a politician. And to tell the truth there's hardly any difference." - Harry Truman
Great Truman quote. Thanks.
There's no restraint whatsoever. All the Republicans allegedly achieved with all the hoopla last August was a reduction in the rate of increase of spending. I saw that movie back under Reagan, if memory serves me. Adult people actually put that forward as an achievement.
Obama, in our current fiscal predicament, was drawn to a penny ante involvement in Libya like a moth to the flame. The idea that our grasp had exceeded our resources and that we could, gasp, safely leave that minor war to our European friends who DID have a dog in the fight over Libyan oil was something that only chumps would concern themselves with.
It's steady as she goes on all fronts and the going is very good for the politicians and crats on the inside. "Tomorrow" is a word much in disfavor in the federal government.
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