The United States economy is fucked up. It's been fucked up for forty years. That's how long we have consistently had large government budget and balance of trade deficits. The way it works is we buy most of the stuff we need from overseas and the government pumps enough money to pay for it all into the economy in the form of deficit spending. This worked for a long time. Longer than anyone expected. Most people ignored that it was happening and just expected it to go on forever.
So, now that the system has finally started to come apart at the seams, what is the solution that we have come up with to make things work again? Stop spending so much and start to pay back what we have borrowed? Wipe the slate clean and start all over again? Not even. The obvious answer is to increase spending and borrow even more because anything else would require effort and sacrifice on our part. America is such a great country. Land of the free and home of the brave.
1 comment:
I was lying in bed last night and came up with this scenario:
Paper. Our wealth is based upon paper that asserts its worth. And we use computer bytes to represent the paper when we make electronic transactions.
What if only a few people (OR countries) demanded sound money gold, silver, platinum in place of paper or electrons?
Post a Comment