It is fiscally irresponsible to believe that you can continue to gain re-election by the simple mechanism of handing out money and benefits to a greedy welfare-entitlement society. You might be successful at first but eventually you will be discovered and even the worthless of our society will notice.
So far the awareness has been accelerating slowly. But, consider these numbers for a moment:
Doubled Debt in Less Than a Year, Seeking Exponential Increase in Future
There is nothing inherently wrong with debt. We all enter debt to buy cars or homes or finance a child's education. Debt is a tool. But debt becomes toxic when the service of that debt exceeds our ability to pay and simultaneously meet our daily living obligations. If you can't pay the utility bill anymore or buy clothing, you've got too much debt.
Money is simply paper these days, a contract which we accept as a medium of exchange for goods and services. There is no limited quantity asset which backs it as there was when we had a gold standard. That means at some point the solution to oppressive and overwhelming debt is to print your way out of it.
Running the presses overtime devalues your currency, destroys your savings, decimates the value of your labor and demolishes your national credibility. We apparently are reaching a point in the process at which failure to modify behavior will place us inexorably on the path of Weimar Germany. Hyperinflation, economic collapse and then, who knows. We can read the history of Germany to get one possible path and it isn't a pretty one.
Throw another shovel full of money on the fire, dear, I feel a chill in the air.
2 comments:
I have a 1922 thousand Mark note with the words "Eine Millarde Mark" (one billion Marks) stamped across it. It's been in the family a couple of generations.
My grandparents and father boarded ship for the US in 1939, on the literal eve of Germany's invasion of Poland. (My grandfather, having fought in WW1, could plainly see what was about to happen.)
They started their new lives and ultimately succeeded handsomely here. To them, "debt" was something to be avoided whenever possible and retired quickly when it could not be. Debt was acquired solely for the purpose of improving productivity, never for recreation or luxury.
The last item they bought "on time" was a cream separator for the dairy. That was sometime around 1950. It sits, fully restored and functional, in the entryway of my house, on the same property.
My wife and I did well on the sale of our first house, which allowed us to build here. The place owes nothing and we have no mortgage.
Lektion gelernt, Opa.
Moriarty, all you will have is ever increasing obligations to the government for DARING to own property of value with no debt. The asshats in DC will make sure to make sure you pay more and more for that privilege...they see it as an affront to their schemes of control.
Yeah guess Im kinda bitter, we also have our house paid for, unfortunately the state and county still value it at the hyper inflated worth of the housing bubble, not what it can be sold for now and tax accordingly.
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