Deficits Don't Matter?

The spending monkeys in Washington have been spending trillions trying to keep the economy afloat. They have been doing this since the Reagan years. Remember "deficits don't matter". That's partially true. If one is on the receiving side of deficit spending then deficits don't matter. But one who doesn't get the benefits but on the contrary has to payoff the deficits for years to come then deficits do indeed matter.Government employees, politicians, Wall St, banks, special interests foreign and domestic ,military-industrial-complex etc celebrate deficit spending. Most everyone else pays the tab.

Nothing lasts forever. When we do finally go broke it won't make much of a difference to most people unlike the privateers who have been gaming the system.

Obama Revisits Past For Future Plan

This is what Obama really said at a press conference yesterday:

O: " We are in an severe economic downturn. It was brought on by years of fiscal mismanagement. Simply we have been living beyond our means both in the private and public sectors."

Reporter: " What do you propose to do about this looming meltdown?"

O: " I am proposing to spend massive amounts of money that we don't have to jump start the economy so that we can have breathing room for fiscal responsible policies in the future."

Reporter: " Why not do fiscal responsible policies now so we can avoid making the same mistake again? For instance why don't you stop both wars and make across the board federal spending cuts now? "

O: " I promise to do what you suggest in my second term."

Reporter: " How will the planet redeem all the demands of the new money and debt? Are we not growing faster than forests right now?

O: " I will address that question in my second term."

Reporter: " I always thought that NOW was always a good time for fiscal responsibility."

O: " NOW spelled backwards is WON. I WON. I will determine when NOW is.

Treasury's Henry Paulson Hollow Defense Of Dollar

The dollar has lost about 30% of its value versus the Euro in the past 2 years. Yesterday Secretary of the Treasury Henry Paulson was giving cheap lip support to the greenback by saying "...a strong dollar is in the nation's best interest and its strength is tied to the long-term strength of the [U.S.] economy". That's partially true. A strong economy cannot support a dollar that rolls off the printing press faster than the growth rate of that economy. Something has to give I.E. the value of the dollar on world markets goes down Q.E.D. So if the federal government really wanted a strong dollar it wouldn't print so much money.

Alas that's how Washington works. Paulson and his Wall St. cronies and Bush and his warmongering buddies want more money now and will let foreigners hold the bag of the falling buck. But sometime soon the foreigners may refuse to lose as much and decide to deversify out of our currency. That shift might be what's neccessary to end this war that relies on foreigners to fund.