The Leader Speaks; We MUST Follow

“We may not be able to reverse…”

Well, the new president from Illinois is now imitating Chicken Little, cousin of the rooster, Blago. We may never be able to recover unless we spend multi billions of dollars on his and Nancy’s programs. Praise the Lord. What did we ever do to be so blessed with this man’s vision and capability?

So, here’s a simple question for these geniuses. How many times can you reinflate a balloon? When does it get too stretched out or fragile or worn to the point that it can no longer hold air?

Government spending, government debt and employment, government programs, bailouts, subsidies and loans are all at record highs. The balance sheet of the Federal Reserve is levering up fast and the US Treasury is issuing record levels of new debt. As we approach the end of the first decade of the new millennium and enter the 24th decade of our republic, each government effort to reinflate the balloon requires more cash and more debt. Would any of you conduct you own financial affairs in such a manner?

Why are we so intent on not taking the pain of occasional downturns, recessions, higher unemployment and bankruptcies in order to build a healthier base for the future? When and why did our government (really politicians and their hired bureaucratic help) reach the conclusion that we are better off avoiding these downturns with government programs and debt infusions and high falutin’ rhetoric. What gives with these new principles? Where did they come from? Where do they lead us? What happened to frugality and living within ones means?

Why do we avoid economic pain with so much conviction? Individually we face physical pain as either the price for a healthier body or as the price for a medical therapy to restore health. But we don’t want any pain to restore our economic health. Or could it be the clay feet of our leaders? Maybe it’s just them telling us that the world is going to collapse unless we keep pumping up the balloon. Interesting logic. We’re in trouble because credit and leverage were excessive so to avoid the painful correction let’s add some more debt and leverage. Hmmmmm……. Am I really this stupid?

My hypothesis is simple. It is not wealth creators and taxpayers who avoid this pain. It’s government – politicians and bureaucrats. Politicians because they fear for their jobs and paychecks and benefits and silly lifestyle and bureaucrats because they fear for their jobs and paychecks and……

Let’s get back to the fundamentals.