Because a single quarter of 2.5% GDP growth was worth borrowing $750,000,000,000 from China (plus interest, to be paid by your grandchildren) we are going to do it again. Great.
This time, we are going to follow in the footsteps of the USA (1930s) and Japan (1980s-1990s) straight into a decade-long-plus depression: building big stuff nobody needs, and borrowing money (at interest) to pay for it. We only got out of the Depression because of a war, and the aftermath of the war, pumping money into the US economy. The current Great Recession is happening DURING a war. Japan is well on the way to THREE "lost decades" of financial growth. During that span, they went through several 50% rallies in the stock market (on the way down) just like we recently had.
This has a strong potential to end very badly for the US (and so, the world) economy. Note: the Fair Tax proposal would do almost all you need to reverse the current difficulties. As it is, actually, you know, FAIR, and it gives power to the people instead of the Government, the Fair Tax proposal remains DOA as long as the Democrat party is in power.
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As usual, I found the Calculated Risk link at Mish's place.
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