Tuesday, March 22, 2011

Links 3/22/2011

Obama is as much of a budget-buster as GWB, from whom he inherited the worst deficit in the nation’s history.  Washington is totally out of control.

My thoughts recently, watching disasters unfold on two sides of the world, have been toward historical parallels with the ‘Thirties.  If Washington decides to take the first steps toward restoring a landed aristocracy by further smashing labor, virtually precluding the higher education of any children but those of the rich, and slashing government budgets across the land—what will we do with the tens of millions of unemployed families that will fill our streets?  This is essentially the problem FDR faced in the ‘Thirties.  Acting in loco parentis as if the market had failed miserably (it had, due to unbalanced aggregate demand due to unbalanced income and wealth distributions, IMHO), he put people to work, mostly to give them hope, as his programs did not get the nation out of the Depression.  World War II equalized the income distribution as “the Pearl Harbor of the 21st Century” failed miserably to do, and set the stage for renewed growth….


(click chart to go to source)

What will America do in the deflationary collapse probably just over the horizon?

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