The Boomers are Out of Time – And Out of Money
By Bill Bonner, 09/08/09 London, England
Clowns to the left of us…jokers to the right…
The Simpleton’s Analysis:
Consumers cut back. The economy sank.
Now, government must take action. It must help people out and take up the slack.
The downturn took $12 trillion off Americans’ net worth. The feds have pledged about $12 trillion to fix the problem.
But wait, where does government get any money?
Hey, they borrow it, just like consumers did. And besides, it’s ultimately the same money – taxpayers’ money. So what’s the big diff?
The big diff is the subject of today’s Daily Reckoning.
The first big diff is that the feds don’t spend your money the way you would. Private citizens spend money they don’t have on things they want but don’t need. The feds spend money that doesn’t belong to them on things that the rightful owners don’t even want.
Wait a minute. Markets were closed yesterday. With no figures to report, we should talk about something important. What’s important about macroeconomics? Nothing. It’s 95% claptrap. The other 5% is pure fraud.
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The Boomers are Out of Time - And Out of Money