The Deficit

I can't believe I'm quoting Dick Cheney but "deficits don't matter." All this talk about the kids having to pay our debt is pure balderdash. Our country has the lowest tax rate in the world and will probably retain this distinction well into the future. Our consumer based economy runs on disposable income, individuals and businesses like it this way and that's the way it will stay. The world flocks to our treasury to buy our promissory notes. Everybody everywhere loves dollars. Take a sack of paper dollars into any backwoods world community and I guarantee you can sell them at 5 times the official exchange rate. There is a huge cloud of wealth that floats above the world and thank god, it rains everyday in America. When we decided to scrap the gold standard in favor of a fiat system our economy instantly became a confidence game. If we continue to be assessed a world leader and a strong nation we will be O.K.

There are things we can do to enhance our economic future and paying down deficits is not one of them. What needs to be balanced is the trade deficit. America will never have a surplus of goods to sell because labor is too dear. What we must do is buy less crap and sell more ideas. Our kids should get smarter or we will import good minds from the world. Technology and proprietary knowledge is our product, let the foreigners crank out the goodies. Build a stronger dollar, we hardly ever raise taxes but we can increase interest rates. Cheap money is good to solve a recession but bad for our sustained world growth. So, now's the time to buy that house or any other big purchase. Money must become dear, this will slow commodity speculation and inflation, make more money available to small businesses, balance risk taking and enhance our world position. Borrowing against equity is speculation (as we have learned) borrowing against capital reserves is prudent and productive. Americans must establish a savings base, cut up the credit cards and learn about diversification. Personal debt is ruinous, national debt is ethereal.

George Bush actually enhanced our global position by entering an unnecessary war. The initial show of force scared the crap out of the entire planet. Fear always equates with respect but his clueless bumbling of the occupation and rebuilding of Iraq sent us sliding down the crapper. Bush and his lackey Paul Bremer dismantled an entire society and established a cruel killing ground as a viable democratic solution. Hard to believe the incredible stupidity even at this distance of seven years. The world does remember the shock and awe and treads lightly.

Banks need to go back to being banks and not casinos. Barry needs to control an unruly Congress of Idiots and a Senate of self-serving egos. The public & media should shut up and pay attention, think and make some statement beyond reaction and titillation. Yes, there's a lot of work to be done but it can be done especially if corporate America can get beyond the attraction of easy profit, market manipulation and personal greed. Realignment of wealth has always been a viable idea. In fact, it is the only good idea if we want to maintain a consumer based economy. Capitalism is more controlled and perverted by bad corporate thinking than by any governmental interference. They could and should police themselves. Good minds and good men must find themselves allied.