brambleblog

The sum total of America's national debt & liabilities through 2007 was in the neighborhood of $65 trillion. An unprecedented amount.

In 2008, our government (+Treasury, +Fed) have added another $2.5 trillion to our collective debt & liabilities... a sum that increases to $8 trillion if you count Fannie Mae & Freddie Mac's liabilities. In other words, our national debt has grown by 12% this year, and we still have Q4 to look forward to.

Long story short, the USA is insolvent. Our public officials remain in denial and dangerously reactive. This year alone, taxpayers have swallowed $8 trillion via deficit spending, purchase of private debt, and increased money supply, i.e. printing $USD "out of thin air". This election season will pass and America will be faced with a deep recession and acute price inflation. All of the horrible consequences of this crisis will be realized regardless of half-hearted promises made by lame duck politicians trying to pass desperate, ill-conceived (and pork-laden) legislation.

Last friday taxpayers were robbed of $800 billion merely to postpone truth & consequences for 32 days. Of course, markets continue to plunge and our economic weather-vane is being wrenched from it's perch. Bailouts will not "fix" anything. Our problems are complex and systemic... there is no 'easy' button.

The will of the public was measured in the House of Representatives on 29 Sept. Although nothing has changed since then, taxpayers will suffer more abuse and indignity - either by further bailouts, or inflation, or both. There's no telling how long the pain will last and pity anyone foolish enough to proffer a guess. However, some hope remains. Many 'problems' can be voted out of office, some as soon as 04 nov. It's a start.

-- MP