I can’t believe what I am reading this morning.
The U.S. economy contracted during the last quarter of 2012 because private businesses are not investing. We have a phony economy that has become entirely dependent on fantasy FED outlays, borrowing, taxes, and federal spending on its welfare and warfare complexes. Any cuts to the artificial economy necessarily result in deflation because the real economy is not large enough to make up the difference. The real productive economy has been subsumed by the government economy.
So what do the Keynesians in both parties want to do? Instead of accepting the fact that we are on an unsustainable collision course with destiny because of our alcoholic behavior, they want to raise more taxes, print more money and spend more! Like many alcoholics they are in denial, so we should ignore them. They decry “austerity” as if it is some temporary central planning program that is tinkering with the wonderful status quo. The status quo is already a disaster. Austerity is nothing more than the natural consequence of a failed economic philosophy that fueled irresponsible behavior for decades. Austerity is happening because there is no other choice.
Saving the economy will not be painless. Real change is never painless. There will be temporary deflation as we reestablish a healthier economic equilibrium.
Let’s stop the spending insanity. End the Keynesian alcoholic nightmare that has ruined our country.