The Crowbar

When will Keynesians learn that deficit spending always costs orders of magnitude more than spending reduction? Never, of course, because they live in an agenda-driven fantasy world where denial is the highest virtue.

As was inevitable with the Bush/Obama Administrations’ harebrained ”stimulus” bills, the US Federal Reserve has begun printing money, adding to the money supply – trying to ease credit. China, the largest holder of US reserves, is flipping out about it because it WILL induce inflation and China’s (and all reserve holders) currency holdings will lose significant value. With enough inflation nobody will want to buy US debt. The US is in real, actual danger of collapsing under the weight of it’s own debt.

Our stimulus and other deficit spending is deeply stupid and foolish, not to mention dangerous to our economy.