Saturday, December 8, 2012
Now that billions have been spent trying to convince Americans that their leaders actually know what they're doing, two issues loom large: the debt ceiling (again), and the ‘fiscal cliff.’ While they may seem like separate issues, it’s all really one big package that attempts to spend more than is brought in and at the same time justify it. The good news is that the players are the same and we can use that as barometer based on how they handled the 2010 situation. The bad news is they did a pitiful job in 2010, opting to simply kick the can down the road as opposed to actually embarking on any meaningful reform.
Sutton discusses the American superiority myth, the consumer’s millstone, what the reckoning will look like (not pretty), the Kondratieff winter, generational theory and the death of Keynesianism.
Unlimited QE is not the way to prosperity; it simply means that the bankers will end up owning the title to your house and your car; they will enrich themselves infinitely with the spoils of your labour. The Keynesian experiment does result in prosperity, but not that of the people. Only the financial oligarchy benefits. At the end of this cycle, Keynesianism will meet its demise, but the American standard of living that has been enjoyed since the Depression will die along with it. In truth, that living standard has been compromised for some time now, with its maintenance becoming more and more dependent on the accumulation of debt.
US society, says Sutton, has reached a point where it is so disconnected from its last great lessons in economics and hardship that it is now doomed to experience the next round. “All the ingredients are in the mixing bowl and the blender has been slowly picking up speed for the last half dozen years.
Posted by Unknown at 10:44 AM