Eric Margolis explains: "My parents, who lived through the 1930’s Depression, taught me two rules: don’t buy anything until you can pay for it with your savings; and always save a sizable portion of your income.
The United States, once powerhouse to the world, is hooked on debt. America has become so addicted that regular hits are necessary to keep the economy sputtering along.
Last week’s vow by the Federal Reserve to keep interest rates at close to zero for two more years was a trumpet call to Americans to borrow yet more money. Bankers must have been cock-a-hoop.
A man I once knew was extolling the wonders of cocaine.
"You wake up in the morning with a horrible hangover and feel like death. Then, you do a big line and, presto, you feel like a new man."
He went on. "Problem is, after about 20 minutes, the new man needs another big line." In drug parlance, it’s called chasing the dragon.
The US has been chasing the dragon for a decade.
The crash of 2008 was caused by runaway debt. Washington’s remedy: more debt poison..."
Comment: While the government wastes billions with its "war on drugs", society swallows up on a deadlier poison: debt.
I guess that my diagnosis of September 2008 is more correct than ever:
"The financial crisis is not over. Neither tax rebates nor low interest rates nor higher or lower exchange rates can do the job of reviving an economy that is burdened by debt loads that are too high. On the contrary: the policy measures that the US authorities have been applying will prolong the agony. Be prepared for the challenges of extended financial turmoil and economic stagnation..."Read more