Monday, December 28, 2015

There Has Never Been A More Selfish Generation......DO NOT MISS THIS!

There Has Never Been A More Selfish Generation

What other generation has been so amenable toward letting future generations pay for their lavish lifestyles?

Even those in the US who do not live in veneered mansions enjoy a lifestyle made possible only by compounding the greatest mountains of rotting, stinking national debt mankind has ever seen. This rubbish is their gift to posterity as, again,they have no thought whatsoever of attempting to pay off this debt.

Our generation has decided the next generation can pay the bill for all of our generosity. 

We create welfare programs that we finance far into the future. We do this so that we can feel like we take care of our poor, but we hand the actual burden of paying for our largess off to our children and grandchildren!

We also let the next generation pay for our security. We are not bravely defending ourselves by our own strength. We are sapping the future strength of our grandchildren to defend ourselves now.

We are generous with other people's money — people who are not even alive today and who have no say in these decisions that they shall pay for. The majority remain committed to government that finances its love and war far into the future with piles of debt that no one can repay.

Congress has stated over and over that it is just kicking the can further down the road, but that has never stopped them from doing it, no matter which parity is in charge! Both parties complain about kicking our national-debt problem further down the road, but they do it anyway. Democrats and Republicans are equally addicted to debt. US citizens who call themselves by either party monicker are part of a generation that wants to party on but doesn't want to and can't afford to pay for the party. We are a nation drunk on debt.

Both parties are guardians of the status quo and defenders of the wealthy; and neither party has a genuinely creative idea in its collective head. 

The only difference between Democrats and Republicans economically is what things motivate them to spend other people's money.

The Welfare party, known as the the Democratic Party, enables its millions of members to feel generous by ordering their grandchildren to pay for the meals given today to hungry families.

Republicans, on the other hand, like to pretend they are fiscally conservative; but they have always proposed budget deficits, too, and have repeatedly shown themselves willing to play games with the national credit rating. While Republicans claim they are against big government, they are really only against big-government regulations on businesses.

Republicans have created deficits to fund all of that government expansion. Why didn't they create deficits to stimulate the economy with new jobs by building roads and improving dilapidated sewer systems, improving the efficiency of highways, upgrading infrastructure. Why? Because that kind of government spending actually does stimulate the economy by creating hundreds of thousands of jobs, and Obama might get the credit. It also is work that needs to be done and that is ordinarily the province of government, so it is work Republicans would normally be supportive of, but not if it's going to make a Democrat president look good.

The only difference between the two parties fiscally is the things that make them willing to pile up mountains of debt. The only difference is what they want to spend the money on.

How pathetic and weak is it to defend your country with your children's future?

If we actually cared, we'd stop kicking the can down the road.

The next generation will just have to suck it up when the bill comes due. That is what our actions say, even though people may wince or even get angry at hearing it. Anger is denial's usual defense.

We need to stop pretending that we are generous and thoughtful toward the poor or strong and wise in defending our country … if you are going to shove the cost of your largess or strength off on to your grandchildren, what we really are is pathetic.

Both Democrats and Republicans created the lie that their bankster friends were "too big to fail," even as they idly watched the banks made bigger by order of the Federal Reserve. Neither party has pressed hard to send busted bankers and broken brokers to jail. They have time to jockey for political power but no time to make sure potbellied bankers go to prison.

If "too big to fail" was not a lie, why would both parties sit back all these years and allow the Fed to make those tipsy, top-heavy banks even bigger while it seemed to surreptitiously let a few banks fail?

Democrats and Republicans equally participated in taking the status quo and amping it up on steroids. They have turned every major bank into a colossus. They took a national debt the size of Texas and turned it into a national debt the size of a continent. It seems the only solution to anything our greedy leaders understand is that bigger is better, even when they claim bigness is the problem.

The Great Recession proved to be, as so often is the case (under the crony politics of both parties), a convenient opportunity for the fat-and-wealthy to become more rotund at fire-sale prices. While the largest banks on earth gobbled each other up in a government-encouraged feeding frenzy, the risks of such carnivorous ventures were underwritten by taxpayers.

If the big banks were allowed to collapse, their money would simply disintegrate into the thin air from which it was originally created as the banks went up in smoke. In creating new fiat money, you are only making that lost, old fiat money back up. You are not expanding the total money supply; you are just relocating it … like double-entry bookkeeping.

We created trillions in new money anyway through zero-interest expansion of our money supply and quantitative wheezing. That didn't create any of the customary inflation we were concerned about because it all went to banks to invest in stocks and bonds and barely entered regular circulation. As a result, it inflated the stock and bond markets to the point of approaching collapse, which we will pay for dearly in the form of economic disruption.

What is the inflationary difference between creating vast amounts of money in the reserve accounts of major banks as the Fed did via QE and creating that same amount of money, instead, in numerous smaller and healthier banks in the names of the people and institutions whose deposits would have been flushed away by the failure of colossal institutions? The difference is that the money would immediately flow into Main Street's economy, instead of Wall Street, which might have actually created a little of the inflation the Fed has said it wants.

That would still serve the interest of our wealthy patricians, as all money bubbles up. You cannot buy pajamas on Main Street at Christmas with the money in your newly recreated bank account without that money transferring to Macy's or Walmart and eventually to bank accounts of their stockholders. So, the money always trickles up, but the Federal Reserve is owned by big banks, and they greedily wanted the money directly. Thus, the new money all bypassed Main St. and went straight to Wall St. where the wealthy bid up stock, which benefited only themselves.

The Republicans and Democrats who stepped in to save the world only like capitalism so long as it is creating wealth for them and their friends; they don't like its "self-regulating" mechanisms for correcting greed when we fail to regulate people away from greedy actions in the first place. At that point, suddenly all the capitalists become collectivists and socialized the cost of their failed and failing financial experiments.

The sad fact is, we've done NOTHING to rectify those dangers! 

We've had seven years and have done nothing at all! Republicans and Democrats alike twiddle their thumbs and pretend they do not see that the banks that were too big to fail are now twice as large as they were back then. One has to conclude they were lying when they told us these institutions were too big to fail because they have presided over a process that guaranteed those institutions would become much bigger.

Where is the outrage that this has happened?

The truth is that the vast majority of the American public is too ignorant to understand what has happened and what the real consequences of this will be. Because we squandered our opportunity to correct our own problems, our problems shall be our legacy. 

Congress, unwilling and unable to make brave decisions, was all too willing to believe the Fed could engineer recovery on its own. Congress abdicated its authority and responsibility. The Fed sometimes warned congress it could not solve the problem on its own and that fiscal policy must be put in place to create a more sound economy, but those warnings were faint … I suspect because the Fed's head was inflated by the idea that people thought the Federal Reserve could save the world. The Federal Reserve, in its pride, came to believe that itself.

What the Fed gave us was anesthesia. Had we diligently used the past seven years we had under anesthesia to restructure our economy away from debt, it could have saved us a painful transition. Instead, we let the anesthesia numb us to the mending that needed to be done and then left the injuries untreated.

Now the anesthesia has run out, but we still have all the corrections to make. Because we have piled up mountains of debt, we have no reserve strength left. We have squandered our opportunity for change in order to maintain the status quo by financing everything with even more debt so that we'd never have to feel the pain of correction.

We continued with adjustable-rate mortgage traps. 

We continued our sloppy terms of credit. 

We continued to allow deregulated banks to speculate in the stock market. 

We don't allow people with 401k's to operate outside of the services of fund managers by letting them buy and hold actual bonds under tax advantages of a 401k plan. 

We instituted interest rates that discourage savings as if they were the plague. 

We tried to re-inflate the housing market with those same zero interest base rates, instead of letting housing prices deflate back to a level where people can afford a home without ridiculous terms of credit. 

We repeated the sloppiness of auto financing that extends years beyond the collateral value of the automobile with no downpayment required.

It's wretched how dumb we are in our greed to have everything right now in the cheapest way possible and how willing we are to force the debts of that consumption upon our grandchildren and to pretend that won't hurt them. 

We live in economic denial! 

This is no way to run an economy or society. 

No way to build an economy for future strength. 

No way to treat future generations who must follow in our footsteps, footsteps that are already mired in a quagmire of very sticky, deepening mud.



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