Is Government Financed Economic Recovery Legitimate?

AmericanMonetaryAssociation.orgOne thing we can credit the federal government with over the course of this most recent recession and economic “recovery” is that they committed an error of omission of historic proportions by deciding that certain private and public institutions were too big to fail. Once again, our fearful leaders proved they don't have the courage or will to tell the rest of us the cure is going to taste bad and hurt a little, but it's got to be done.

The pattern of the American economy has been obvious over the recent decades. An explosive speculative bubble, followed by a debilitating bust. Then the government swoops in with financial stimulus and a Band-Aid package that pretties the beating up a bit but doesn't do a darn thing for the cancer eating out the insides of America's financial viability. So we get another bubble, followed by an even more horrific bust, and you have…today.

This would have been the perfect time for the lads and lasses at the Treasury Department and Federal Reserve to stand aside and let the titans crumble. Cash-rich investors standing on the sideline would have swooped in to buy up large chunks of America at bargain basement prices, rebuilding the economy on a sound foundation.

But the cowardly politi

cians and economists lost their nerve at the precise moment their country needed them to be stronger. That's why we have QE II, with QE III on the horizon, a currency that is in serious danger of being abandoned as the world reserve, and no legitimate plan about how to create a real economic recovery. At least we have learned a lot about the best way NOT to run an economy. Mr. Obama can take it from here: “My fellow Americans, let there be no mistake, I'll send jackbooted thugs to your house to pry the last dollar from your pocket, if needed, to give to Lehman Brothers because, darn it, they're just too important to the economy. Much more important than you are.”

Actually, Mr. Obama did not utter that previous quote. We're just judging by his actions that those are the words that would come out of his mouth if he chose to express his innermost feelings on the matter. So our handlers continue to spend trillions we don't have. Meanwhile the Chinese buyers of treasury bonds are wondering if it's too late to untie themselves from the American state going down in a sea of red…ink, that is.

The American Monetary Association

American Monetary Association

Flickr / irrezolut

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