>>'"At the current economic rate we'll never eliminate the deficit."
You can't stimulate growth with borrowed money, because the borrowing commits a larger share of your future profits to pay the debt service, and because interest compounds faster than profits, this is a losing proposition. It has one sure outcome: default.
Picture this equation: a borrower and a bank. The borrower intends to borrow all he needs to live on. The bank intends to lend all it can as long as the interest payments come in. Who do you think has the competitive advantage in this relationship? The bank, of course. The borrower only exists as long as the bank permits him to exist.
Proposing a massive increase in borrowing during a recession created by excessive leveraged debt is like tearing open a case of bourbon when the bottle of bourbon just gave you a huge hangover. It's the mindset of an addict. The only reason the Federal Reserve cooperates with this lunacy is because the lenders who feed us this debt own title to a larger and larger percentage of collateral with each new round of lending.
They are trading you paper they create out of thin air with a computer for title to every real asset under your feet. Good luck with that.
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