Tuesday, March 17, 2009

America: Maxing Out the Credit Cards

"Quick, send out an EMERGENCY STIMULUS PACKAGE. CUT TAXES. HOLY SHIT, we've gotta cut taxes, otherwise, we won't have as much money in our pockets. After all, I want that TV. The 60" plasma. Without a tax cut, I can't... have it. What kind of land of dreams is this without 60" plasma TVs?"

Politicians have been elected for years on the premise that they will cut taxes. Yet at the same time, the politicians can't cut spending for fear that the army won't get to buy any new tanks or that some advocacy group will shit themselves when they hear they won't get their entitlement funds. Therefore, politicians wave a magic wand and do the impossible--increase spending and cut taxes. It turns out that politicians are angels.

Angels perform miracles in one of two ways. The first option is to create more money. This sounds like a great idea until one considers that inflation would wreck the value of the dollar, and the only way to compensate at that point would be to print more money, causing hyperinflation. Therefore, angels perform miracles with a second option--they sell bonds.

Bonds are a way of getting money now and paying for it later. It's not that different from a credit card. You get money now and pay it back later... plus some more, you know, just to thank the lender for the favor.

So since there isn't enough money already, and the money needs to get paid back at some point--plus a little more--where does the money come from? And what about the little bit more? The angels perform the same miracle; they sell more bonds.

It's completely unbelievable. For years, our country has been pulling the same sad trick that has led thousands of Americans into bankruptcy. In essence, we're using credit cards to pay off our maxed out credit cards to continue a fucked up spending spree.

That's exactly what it is. It's fucked up. We're selling our country out and rewarding politicians who do it. Great job America, you've fulfilled the fears of our forefathers: "mob-ocracy."

When the Chinese get pissed off and foreclose, expect warm days in major cities and bulldozers at the Federal Reserve Bank.

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