Spending Our Way to Prosperity

I've been avoiding this topic because it seems so over done, and almost an irresistible fate.

The current economic issues are not and cannot be addressed by any "bail out", "rescue" or "stimulus package", no matter how well intentioned or how well executed. The reason is because these things violate fundamental laws of economics, and everyone knows it.

Why have them then?

One word: Politics.

But it's really worse than politics, it's dirty politics. It's time to call these beasts what they are, payoffs. Who do you think will be receiving all these billions (now trillions) of dollars? You? Your neighbor?

Don't be silly. The first people who will get them are the big time money people on Wall Street, and who will pay for them, the tax payers. While there is a bit of satisfying justice in recognizing that the rich people, who pay most of the taxes, will, in fact, be bailing out themselves, it will not be so simple. The government doesn't have this money just sitting around. It has to raise it, with taxes, or create it, with monetary policy. (Monetary policy is a euphemism for "out of thin air", in case you're not sure.)

But will "the rich" really pay for it?

Actually, yes and no. They will pay for it in the same way that we will all pay for it, via inflation. If it not possible to pump billions upon billions of new dollars into the system and not devalue the currency already in circulation. Economics 101 tells us about supply and demand, and the governments plans call for an increase in the supply that will cause a decrease in price (or in this case value). This is an irrevocable law no less potent than gravity. Good intentions cannot over come it.

The problem is that not enough people in Washington D.C. want to face the hard reality. We've been spending ourselves into oblivion for a very long time, and that you cannot continue to distort the market forever. Just as you can overcome gravity for a while by expending energy, eventually it pulls you back down, so you can overcome the forces of economics, for a while. We're headed back down, and I believe nothing on this earth can stop it.

Inflation is coming at us like a rushing train. Take actions now to survive, and even thrive, in such an environment if you can. The only question is, will the economic train of our destruction take with it "only" our standard of living, or will it stamp out our liberties as well?

Keep track of the names of those who put us on this track. Their parties are the old parties, the parties that have been bought and paid for by special interest groups. The GOP abandoned its conservative core, the DNC never had one. Only the party of principle holds any hope for us now. Cast off the elephant and the jackass, and stand tall with the lady holding the torch.