Let's cut it all down to a short, easily-digested set of facts.
(Кто переведет на русский, тот получит пирожок).
- With a few notable exceptions everyone believes that government at some level is good, not bad. (your host is in this group.)
- All governments inherently exist only due to the consent of the governed, as all governments require the active cooperation of the individuals living under that government to perform useful output of some form that they can then tap and distribute.
- Some governments have resorted to slavery (effective or actual) to maintain power but this is a losing proposition over willing cooperation, as a slave doesn't produce to anywhere near his or her full potential. Slavery by trickery is far more common than slavery by force for this very reason.
There is only one debate to have in this regard: What services do you wish to demand of your government at all levels -- federal, state and local?
Now temper that with the following: Every service you demand must be paid for in current taxes.
Violation of that second precept is why we're in this mess.
Political movement no longer works. You need fiscal resolution and you can't get there from here. Don't believe for a minute that this isn't going to blow up in people's faces, because it both can and will.
“It’s a confidence crisis,” said Elwin de Groot, a senior market economist at Rabobank Nederland in Utrecht, Netherlands. “Investors have no confidence that the euro zone can solve its problems. They will look for the most safe place they can store their money, which is Germany. Everything else is suffering.”
This is not going to end well and so far there is nobody talking about what has to actually happen either here or there -- that is, whatever services people want from government they must be willing to pay for them with current tax revenues.
That's the beginning and end of it and the time to take this action is quickly coming to a close. The market is going to enforce prudence whether the wonks in The Fed, in the ECB and in all of the governments involved like it or not.
Eurostat says that GDP in the Eurozone was 0.2% for the third quarter. This means that the Euro zone as a whole cannot run any fiscal deficit whatsoever without continuing an attempt to build the Ponzi.
I repeat: NOBODY is yet speaking to the truth of the matter. Not central bankers, not governments, not politicians in either party here and nobody over in Europe.
The market is calling "BS!" on the games; the banksters and governments, having gotten away with bailing out the crooks in 2008 and then refusing to put a stop to the abuses, smugly thinking they could just go on their way and leave everything alone (including the asset-stripping and lying schemes of the banksters) are discovering that the market is refusing to play along and is going to force the truth into the open.
Again folks, the bottom line is simple: You cannot continually borrow and spend more than you make, yet this is the game that governments have continually played for 30 years, and private businesses have attempted to "lever up" to "take advantage" of this without regard to the mathematical inevitability of this strategy's failure.
Based on the current stock market I feel the central banks will continue to be able to kick the can down the road by monetizing debt. I thought the public would be outraged by this and the Central Banks would be politically forced to stop, but people don't want pain and don't want to know the details. One day they will miss the can and kick the wall.
I prefer as much government as we are willing to pay for. And no more. That appears to be about 18-22% of GDP is all we are willing to pay for. So it's time to sharpen the pencil.
In 2011 the governments in the United States are expected to spend about 41 percent of Gross Domestic Product.
WASHINGTON (AP) — The House votes Friday on whether to adopt a constitutional balanced budget amendment as a means of forcing Congress to come to grips with its inability to deal with spiraling deficits.http://news.yahoo.com/house-prepares-vote-balanced-budget-proposal-085611575.html