Keynes Was Wrong

Consumers take their lead from the government, and the government develops its appetite for debt on the orders of its owners, the bankers, who sell only one product: debt.

With Keynesians, there is always the mad dream that new debt can heal old debt. They juggle the debt and do parlor tricks with the debt until their addiction is forcibly cut off. Debt never feels like a real obligation until you can't obtain it.

"In the final chapter of The Wealth of Nations, Adam Smith argued that once national debts have accumulated to a certain degree, they are rarely paid. Government officials, he argues, are both unwilling and unable to get serious about debt. They don’t want to lose popularity by raising taxes and they will never cut spending enough. Instead, they employ “juggling tricks” to push the debt problem into the future and hide the full costs."

Applies to consumers, applies to our government.

"The most improper “trick” Smith forecasted was currency debasement, by which a real public bankruptcy [is] disguised under the appearance of a pretended payment.”