Mountains of Money
How do we get out from under the enormous amount of debt creation we’re inflicting on ourselves? I keep trying to come up with the right answer. It can’t be that we continue to print more money in order to satisfy interest on the money we’ve already created, right? That would be very inflationary a lot of us would end up paying more for our burger. No, that won’t do… How about cutting spending? Seems obvious on the surface, doesn’t it… except that in all likelihood will smother the feeble economic recovery we’re supposedly experiencing. You know, by killing government jobs and all… Either way, we’ve got a nice little mountain to climb…
http://news.yahoo.com/s/ap/20100723/ap_on_bi_ge/us_budget_deficit_2
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August 22, 2010 at 4:06 pm
About debt. Here is something I cannot seem to get out of my mind. I divided the US deficit (1.4 trillion) by world population (7 billion) and it turns out that in order to pay the bills next year, the government of the the worlds richest nation needs to effectively borrow 200 dollars from every man, woman, and child on planet Earth. I cannot seem to care whether it is possible or sustainable to do this, or whether this fact can be absorbed by anyone’s economic theory. It just seems inherently mad to me, way down the rabbit hole reality. If this is a rational behaving civilization, then I am clearly insane.
Just stumbled onto your site and really appreciate your reasonable tone and sense of bewilderment. I suspect you are probably insane as well.
August 22, 2010 at 8:40 pm
Govts worldwide have backed themselves into a very small corner by printing money – first, to pay for wars and entitlements for which we didn’t have the money, and recently to stave off a depression for a while. The next year should be interesting to say the least… Great thoughts on your part–keep coming back.