"Most economists I talk to believe that the big risk to recovery comes from the inadequacy of government efforts; the stimulus was too small, and it will fade out next year, while high unemployment is undermining both consumer and business confidence."
A principle in economics states that the more you have of something, the less value or use it has and any increment makes the something even less valuable or useful. That's where we are with added government created debt and stimulus. A graph showing this would be a line declining at about a 45 degree angle to zero. We wouldn't expect Paul Krugman or the other "economists" he talked to to appreciate this because it would run contrary to their Keynesian training and beliefs.
From James Howard Kunstler : Quoted on www.TheBurningPlatform.com 11/24/09
". . ." What's going on in the US economy is a slow-motion convulsion from which we will emerge as a very different nation with a different economy. The wild irresponsibility of the media in pretending otherwise is only going to make the convulsion worse, more painful, more socially and politically destructive. The convulsion can be described with precision as one of compressive contraction. Historic circumstances are requiring us to change our behavior, to make new arrangements for everyday life in all the major particulars: capital accumulation and deployment; food production; commerce; habitation; transport; education; and health care. These new arrangements must be organized at a smaller and finer scale, and on a much more local basis.
. . . We are seeing a comprehensive failure of leadership in every sector and every level of American life - in politics, business, banking, education, news media, medicine, and the clergy. All are determined to pretend that we can somehow continue the habits and behaviors of the pre peak oil era. They are all unwilling to face reality, and are all engaged in mutually supporting each other's dangerous fantasies.
. . . At the moment, banking is disintegrating. It's happening because the end of regular, predictable, cyclical, industrial growth means the end of our ability to generate credit without limits, and in fact we passed this point by stealth some time ago leaving the banks in "Wile E. Coyote" suspension above an abyss, where they have lately been joined by government at all levels and the indebted citizens of the land. The profound nausea spreading through the offices of America is the somatic recognition of exactly where we are in all this: off the cliff."
A fight to take back control has begun--it started with tea parties , street demonstrations, a march of a million on Washington, DC, town hall meetings and now
Rep. Ron Paul's bill to audit the FED, which has gained 313 supporters in the House of Representatives.
The establishment will not permit this and they are fighting back with slurs and personal comments about Rep. Paul and the 'dangers' of us citizens learning about what the Fed is doing with and to our money.
Stand back, it looks to be a real David and Goliath contest.
With Love and Kindness,
THE HATMAN
No comments:
Post a Comment