Recovery from Debt

One can become defeated once you start to read about Ten-Year Federal Budget Estimates. The Lying by Denial Estimate (CBO) comes up with $10 trillion in more debt in a decade. Obama Supporters say that he will cut $900 million from the Total, though Everyone knows that no one will see it in Ten years. All Estimates assume no Katrina-style events, effective limitations on medical expenses, an end to military adventures, and all federal bureaucracies operating within their budget guidelines. Everyone also whistles and look the other way, every time that one may mention the inflationary growth of Price amongst Government Suppliers; I have not researched the Subject, but would blindly estimate increases in Price higher than the ordinary Inflation rate. I could even get a Wild Hair you know where, and personally estimate that the Ten year deficit will be closer to $20 trillion rather than $10 trillion. People don’t ask me, and that might be Proper, but I would suggest that the Budget Deficit is a worse Crisis than any other economic crisis seen so far–even the Great Depression.

David Altig has quite a Story, and one can almost think it is reasonable, though I tend to agree with Jim Hamilton more than David. It reminds me of the Story about the man who slept with your baby sister, but maintains that marriage is such a major step! Government Activists at the Fed think they can micro-manage throughout, without having to keep their skirts out of the dirt. They sound like some Corporate Executives I have known, who relate that it was not their Money in the first place, and they will have another Job in 5 years. Does it not have the Feel that the Activists get the thrill of spending billions of dollars, without getting the Credit Card Bill at the end of the month? I have a real fault with allowing such Temporary Help spend such vast sums in an untested economic program, when there is already such evidence of failure.

I will finish by advising you read this Narrative, a real compilation of links. Economists have been throwing out Plans, and variations from each one of them, all calling for more modifications in what are relatively poor themes. Nationalization need not be ‘whole Hog’, simply pass a law allowing the Fed to Accounting Review all Banking institution–including Investment Banks; ridding Ourselves of the organic fallacy of Trade Secrets which really are not Secret, and establishing personal responsibility for all Actions taken by Bank officers. The law should further establish that the Fed possess the capacity to Fire any Bank officer under Conditions of any Bank loss, with Right of Recovery of any fraudulent Wages or Bonuses paid for such activity. Notice, under this law, there is no Need to establish Criminal Guilt, only that losses occurred because of management decision. Too much had been paid for much too little in the first place, and Banks should not be considered Cash Cows to be plundered for the benefit of fast Operators. The remaining Bank officers would come to understand We ask for nothing but good, solid, financial performance–from which they will be well-paid. lgl