Two stories caught my eye this week, and not for good reasons. First a story confirming that American consumers have learned that borrowing is not the way to live, to the detriment of the current politicians, who desperately need the people to attempt to do a personal version of exactly what the government is doing; borrow their way out of debt. This becomes a problem when the consumer avoids increasing their debts, if only our legislature had a clue. On a related note, Barney Frank has got to be among the worst politicians in the world, this guy never takes responsibility when his party does something wrong, when the housing collapse took place he was on every news channel blaming the Republicans for their failed policies, apparently not realizing it was Democrat legislation that lowered the lending standards in an effort to ensure anyone in America wanting a home, could buy one (regardless of whether or not they actually should).
Second; a story about the actual amount of debt rung up between the stimuli and mismanagement of the Federal Reserve. Now, this information regarding that money, combined with this information, along with some simple division…if the $9.7T was divided equally among those who filed returns for 2005 (it’s likely gone up a couple million), everyone who filed a tax return would receive a check from the US Gov’t for an amount of roughly $72,000 EACH!! Want to talk about stimulus? Economic stimulation would definitely take place with that type of infusion.
I still have a major problem with the current inflationary system. No country should issue or produce currency in excess of its reserves of precious metals or tangibly valuable assets. For instance, Saudi Arabia could certainly have a currency amount worth 80% of their Oil reserves, same with the US and gold reserves, so on and so forth. But this valuing the currency against other currency is just bad and stupid policy.
George Washington said, “No generation has a right to contract debts greater than can be paid off during the course of its own existence.” Here is NY Senator Charles Schumer, just this week, explaining modern philosophy on the taking out of new debt, not payable by his generation.
We’re scrod sportsfans. We have elected a leadership willing to do whatever they want, regardless of the needs of the nation.