peacenow's Blog

Where do we go from here?

“If something cannot go on forever, it will stop”

 Economist Herbert Stein

It’s not about balancing the books, but about balancing the most basic impulses of society.  These are structural and, ultimately, moral questions.  Credit depends on trust, and trust pre-supposes responsibility.  If you have a credit boom in an age that has all but abolished personal responsibility, it’s not hard to figure how it’s going to end as the debt snowball increases in geometric proportions. We are in the end game of the let the good times roll economic cycle.

Where do we go from here?

My fear is that sometime in the not too distant future, the United States will bear no relation to the republic of limited government the first generation of Americans fought for.  Life, liberty and the pursuit of happiness could be conspicuous by their absence, replaced with fine tuned regulation.

At the center of the oncoming crisis is the nation’s money supply which under the management of Ben Bernanke has been a failed academic exercise. Not only did he take away the interest income from ordinary citizens by reducing interest rates to almost zero, now he twists in the wind because the Federal Reserve is out of options leaving in its wake an unprotected firewall of debt which could turn an economic storm into a tsunami.

In the end, it all comes down to the dollar supporting the next crisis and, there are not enough dollars in the system to cover the losses.  With a mere $15 trillion on hand to support the asset bubble …  Do the math.

The voice of the people will cease to be a whisper in the wind

Al Holtje

AL0913@aol.com