Posted on 02/23/2010 8:34:59 PM PST by Amityschild
I'm going to write today about a very somber subject. It will be, as it usually is here in one form or another, about math.
First, some background. If you believe that we have "escaped" from the mess that gripped this nation in 2008 and 2009, or that said mess "suddenly appeared" and "nobody saw it coming", stop reading now and have your Thorazine dosage checked. It's way off.
Assuming you accept the truth - that this mess was 20 year or more in the making, that it involved creating credit (that is, debt) which the debtor could never pay, and that it still exists because our government policy has been to extend, pretend and allow lies that should be considered accounting fraud and result in prison sentences, then you're on the right page to understand the rest of this missive. Again, if not, go check your Thorazine dosage.
Yes, I know all about the stock market rally from last March. I know all about the claimed GDP "improvement." But I also know that we got both by adding more than $2 trillion in debt to the United States - or roughly 14% of GDP - over the space of the last 18 months. That's about 10% of GDP annualized, and incidentally, a 10% GDP contraction is the common economist's definition of an Economic Depression.
So let's cut the crap - we are in a Depression right now.
(Excerpt) Read more at market-ticker.denninger.net ...
Karl is usually pretty interesting to read and often very right on, but he keeps having this delusion about Obama, that somehow he will do the right thing. (He admits to being an Obama voter)
He apparently doesn’t get that Obama not only won’t do the right thing (by implementing any of the 7 points), he is actively causing and wildly cheering on the destruction of the country every single day.
By the way, if we are forced to bail out Greece, it should be war.
(He admits to being an Obama voter)
SHEESH, when it comes to politics/philosophy he's dumber than a box of credit default swaps.
I always enjoy his very credible take on the mess, though.
He acts as if the “banksters” are the source of the problem. Yes, they bought their politicians. But the big problem is that the politicians have enough power to make them worth buying.
The problem is not that greedy people take advantage of a large and powerful government. It is that we HAVE a large and powerful government. Inevitably, a large and powerful government will become corrupt.
The solution is to radically reduce the power of the government. Folks are less likely to buy off not-powerful politicians. And then it doesn’t matter so much when they do get bought off—they don’t have enough power to mess much up.
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