Hello, followers and friends.
I apologize for not updating this blog for the last several months. I have been extremely busy in my personal life. I will try to post here semi-regularly again, but I can make no promises.
So what's brought me back here again?
It's the economy, stupid.
I'm afraid that our economy is a disaster.
Will the stimulus/bailout packages work? Can the government be the solution? I don't know, but I do have my doubts.
What ails our economy?
We have too much debt, individually and collectively. We're broke. The United States is broke.
So what do we do? We keep spending and spending and spending...but we're still broke.
When FDR launched his New Deal programs, the United States of America was a creditor nation. Now we are a debtor nation. We just don't have the same leverage anymore that we once did. Saudi Arabia, Japan, China, and India essentially own us right now.
So we keep spending more money...that we don't possess. When you're in a hole, isn't it generally a good idea to first stop digging?
I recommend that we cut the size of government. I recommend that we quit bailing out failed institutions. It is a painful remedy indeed but I see no valid alternative.
The solution to our debt problem is more savings and more production, and less consumption. Of course this is going to make the recession worse. But our current course of action is going to make the recession even worse in the long run. By continually spending money that we don't have, we compound the damage which has already occurred. We must stop.
I'm afraid that we'll have to let this recession continue...because there's nothing we can do to stop it.