We live in a world built on fantasies promoted by vile politicians who seek power and the subjugation of the citizens who elected them.
One of the most dangerous of such fantasies is that there is no such thing as borrowing too much money, especially when whole nations do it (see Liberal fake-economist Paul Krugman’s writings on the subject if you want a good laugh, but the consequences of such propaganda are no laughing matter).
Would you believe that a website called CommonDreams.org, with the tag line “Breaking News & Views for the Progressive Community”, just ran a piece about the irresponsible debt buildup?
Well they did, with the intention of blaming “Capitalism”, and they even led with a scary-sounding headline…
“Global Capitalism’s Terrifying New Math”
But their motive matters little because in chasing their bette-noire they merely come running in our fiscal conservative / anti-Obama direction.
The author, Kate Aronoff, starts with the fact that leading consulting firm McKinsey & Co. has just weighed in on the topic.
McKinsey, one of the world’s preeminent business consultants, released a sobering new report this week detailing that, worldwide, total debt has risen by 40.1 percent — or $57 trillion — since the financial crisis of 2008. <CommonDreams.org, link>
Big numbers like “$57 trillion” are hard to comprehend until they are put in some perspective, which almost always means comparing it to the size of a nation’s economy, which is easy to measure and makes sense.
Kingston University economist Steve Keen, who predicted the financial crisis back before the bubble burst in 2008, has created a metric to understand when a global financial system needs some, for lack of a better word, updating. He’s written that when private debt reaches 150 percent of a country’s GDP, that that country should take some serious measures to get its financial house in order. Replicated on a global scale, a critical mass of countries all clocking in above the 150 number spells a highly fragile economic landscape. In the UK, private debt currently stands at 350 percent of GDP. In Japan? 400 percent. China? 217 percent. In the United States, that figure stands at a reasonable if-still-ominous 233 percent of GDP. Overall, private debt now stands at the greatest levels in human history.
Yes, exactly — we have a big problem that is only getting worse every day: mr. Obama’s latest budget proposal adds another $6 trillion to our nation’s debt over the next ten years.
From the New York Times (emphasis added):
WASHINGTON — President Obama will propose a 10-year budget on Monday that stabilizes the federal deficit but does not seek balance, instead focusing on policies to address income inequality as he adds nearly $6 trillion to the debt. <link>
But here’s where Ms. Aronoff commits the same Liberal contortionist maneuver that poor Graydon Carter did last year in Vanity Fair when he wrote about the NDA spying scandal: she writes about an important topic (crushing debt levels) while neglecting to mention the man who has been President of the United States for the last SIX YEARS.
Here is Aronoff pulling out her big rhetorical guns on capitalist excess, yet notice who is absent, and the legerdemain she employs to keep the real culprit hidden (emphasis added):
In the absence of significant popular pressure, global elites (politicians, bankers, etc.) are likely to respond to the coming financial crisis like they did the last one: the wrong way. Rather than putting money into the “real economy,” where we live, spend, love and work, politicians in 2008 chose to prop up the bankers and speculators who got us into the mess in the first place. Consequently, the only industry that’s grown significantly since 2008 is the financial sector. In other words, they bailed out the wrong people and are likely to do so again and again.
Do you see it, the sleight-of-hand?
- She conveniently places the lack of Wall Street accountability in the year 2008, which is to say before mr. Obama took office in January 2009, despite the fact that the bailouts were done under Obama and Geithner, his Treasury Secretary, and passed by a Democrat-party-controlled Congress;
- She uses the pronoun “they” to describe the politicians who failed to hold Wall Street accountable — the mysterious “they” who “propped up bankers and speculators”
So who might “THEY” be? I’ll say what Ms. Aronoff could not bring herself to say: Barack Hussein Obama (D), and the Democratic-party controlled House of Representatives under Nancy Pelosi (D) in 2009 and 2010, and Democratic-party controlled Senate under Harry Reid (D) in 2009 and 2010.
It was Barack Obama in 2009 who allowed Wall Street executives to pay themselves 100% of their bonuses;
It was Barack Obama in 2010 who allowed Wall Street executives to pay themselves 100% of their bonuses;
It was Barack Obama in 2011 who allowed Wall Street executives to pay themselves 100% of their bonuses;
It was Barack Obama in 2012 who allowed Wall Street executives to pay themselves 100% of their bonuses;
It was Barack Obama in 2013 who allowed Wall Street executives to pay themselves 100% of their bonuses;
It was Barack Obama in 2014 who allowed Wall Street executives to pay themselves 100% of their bonuses.
And it was Barack Obama, Nancy Pelosi, and Harry Reid who failed to curb Wall Street abuses in the Dodd (D) / Frank (D) sham-reform law of 2010.
To this day, banks are still “too big to fail”, and the fault for that rests solely in Barack Obama and his cronies.
And so in conclusion, I agree with Ms. Aronoff on the dangers of excessive financial debt, whether personal, corporate, or sovereign.
Barack Obama has run deficits these last six years that have plunged America into a $17 trillion federal debt position, up from $10 trillion when George Bush left office.
He is destroying our nation in many ways, and this reckless borrowing ranks near the top.