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Okay, so maybe I get to put my Economics degree to use here and run a little riff on the sub-prime mortgage fiasco and it’s doppelganger, the US debt fiasco. But I digress.
Okay, very often in Economics, as in sailing, it’s the terminology that can be the barricade to understanding. I’ll try to keep this simple.
The sub-prime debt problem is based, at least in great part, on the problem of responsibility for one’s actions. The current corrupt administration often uses phrases like this, but in practice hands out “Medals of Freedom” to some of the most unsuccessful, incompetent and and ineffective people to ever "serve" in government. (Heck of a job, Brownie!) All that "sub-prime" means, is that these weren't nade to the most credit worthy people in the world. That's it. In the 80's a lot of people thought Michael Milken was selling complete crap because of the label "Junk bonds". All it really meant was that there were a few not perfect, but not crap, issues with the companies involved.
What happened in sub-prime is that the mortgage brokers and banks selling loans generally sold them within a few days of making them. Get it? You, the loan offer gets paid your fee, usually one month's payment on the loan, and then the loan goes away. No risk. Big upside. I remember getting to college in 1977, and hearing a guy in the dorm reading from a student handbook, "Okay, so the police and campus security have to provide 24 hour written notice to enter our dorm rooms. Why shouldn't I IMMEDIATELY start dealing drugs?""
All upside, no risk.
Right, so the Right wing in the US has taken it as gospel that all taxes are bad, lowering them is good and raising them is bad. But they're getting around it by borrowing. The kind of chuckleheads who try to balance their budgets by putting it on credit cards and paying just the minimum are headed for a lot of pain.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Bush has borrowed more than all other Presidents combined.
Want to make sure you get my point.
Why is it so difficult for people to see this? ZERO pain for borrowing. HUGE political cost to pay for raising taxes. But George and Dick know that the bill comes due after their watch. They're leaving it to my younger readers, our children and grandchildren. And they're getting away with it.
A little math here- $9 trillion deficit
300 million Americans
That's $30,000 for every man, woman and child.
With 5% bonds, good for 20 years, that's $800 a month for a family of 4. Almost $10,000 a year. Median household income is around $48,000 a year. So 20 cents out of every dollar an average American earns will need to go to pay for George W. Bush's absurd policies, illegal war and absurd, ideological, corrupt and ineffective rule of 8 years. Then you start at zero to pay for everything else! Glad we haven't raised taxes? Just wait.
How. Stupid. Can. A. Nation's. Citizens. Be?
It's sure as hell enough to start thinking this whole democracy thing might not be up to it's billing.