I heard this article being read on a replay of the Laura Ingraham show:
“Even before Obama walked through the White House door, there were plans for $1 trillion of new debt,” said Niall Ferguson, a Harvard historian who has studied borrowing and its impact on national power. He now estimates that some $2.2 trillion in new government debt will be issued this year, assuming the stimulus plan is approved.
“You either crowd out other borrowers or you print money,” Mr. Ferguson added. “There is no way you can have $2.2 trillion in borrowing without influencing interest rates or inflation in the long-term.”
Mr. Ferguson was particularly struck by the new borrowing because the roots of the current crisis lay in an excess of American debt at all levels, from homeowners to Wall Street banks.
“This is a crisis of excessive debt, which reached 355 percent of American gross domestic product,” he said. “It cannot be solved with more debt.”
THANK you.
I’ve been thinking the same thing, essentially, since the Bear Sterns bailout!
The Mortgage bubble is becoming the Government debt bubble.
When Government debt bubbles burst, THE PEOPLE SUFFER.
I remember the 1980′s, talking to family from Brazil about hyperinflation in that country, and how their government had to keep moving the decimal point over and creating new currencies constantly.
Inflation was through the roof in Brazil because they were up to their ears in debt! When a debtor called asking for 100 Cruzieros, the Brazilian government would start printing. The debtor would look at that freshly minted currency and say, “But … these 100 Cruzieros are no longer worth 100 Cruzieros. They’re only worth 80 Cruzieros.”
Brazil would print another 20 Cruzieros … and the debtor would say, “But … these 20 Cruzieros are no longer worth 20 Cruzieros. They’re only worth 12 Cruzieros.”
Imagine that with numerous debts and debtors … wash, rinse, repeat.
America is not invulnerable to this fate. Excessive debt is our KRYPTONITE.
The Stimulus bill that the big O and Pelosi are pushng is DELIBERATELY POLITICAL and STUPID.
Economic policies MUST be “De-politicized.”
The Harvard Professor inspired me. Now I’ve had my say.
***
And now … back to your regularly scheduled programming. Here is a replay of Damian Hospital’s thoughts from April 7th, 2008, which applies to the above blog post:
Orwell in 1984 said there will always be 3 classes of people: the prols (Lower class, relatively uneducated), the Outer Party (Middle Class), and Inner Party (Upper Class ruling elite).Throughout history, the Middle Class wants to become the Upper Class, while the prols want everyone to be equal. The Upper Class wants to remain in power by any means necessary. When the Middle Class overthrows the Upper Class, they become just as elitist.
In 1984, Winston Smith knew that the proles were the key to revolution, since they outnumber both classes. But it was a displaced hope because the proles have no interest in running a government, or any desire for the responsibility.
As long as you can remember this lesson, you’ll know why social justice does not apply when it comes to Bear Stearns.
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All part of the plan! HEHEHEHEHEHEHEHE!!!!!!!!!!!!!!!!
I suppose being upper class does give you a good education in putting people down. #bigsociety #calmdowndear #cameron #eagle
filling up her glass. feeling on her ass. feeling so upper class.