If we are not borrowing....We have NO Economy
March 02, 2010
– Comments (6)
From 2000 to 2008, it was private sector borrowing that drove our economy. Once the banks started cutting off credit to the private sector.....revenues collapsed....especially to government.
Due to massive tax receipt declines and a need to stimulate the economy plus pay its employees, government is now borrowing $2 trillion dollars per year.....but it is not enough as tax receipts continue to decline.
We are beginning to realize that it was the private sector borrowers that really propelled our economy.....and now that banks have cut off credit to the private sector, we really don't have much of a private sector save health care, food, and defense which gets a significant portion of revenues from government.
Right now there is barely any construction going on.....and much of what is moving is government funded or subsidized.
Soon you too will realize that when you pay borrowers nothing on savings, and raise interest rates and cut off credit to borrowers in a credit dependent consumer economy.........you destroy the economy as now
Hospitals are shutting down.
Schools are shutting down.
Police departments are shutting down.
Fire departments are shutting down.
Dairy farms are shutting down.
Retailers are shutting down.
Builders are shutting down.
Banks are shutting down.
Auto dealers are shutting down.
Manufacturers are shutting down.
It is not the end of the world....simply a mathematical consequence of Benny the B's zombulation policies.
But don't worry...welfare and war are booming.
RSS Headlines
Fool UK