2. Russian perspective on American Marxism in 2009.
3. Bond vigilantes. Excerpt:
“There’s becoming an embedded inflationary premium in the bond market that wasn’t there six months ago,” Gross said yesterday in an interview at a conference in Chicago.The US government is stuck in a very dangerous situation. They have chosen to prop up existing financial institutions with trillions of dollars, yet there are only three ways to get that money: raise taxes, borrow it, or print it. After decades of deficit spending the USA is now unable to raise taxes without strangling growth, borrow money without investors demanding higher interest rates, or print money without risking severe inflation.
The simplest solution is to face the reality that there is no money left for entitlements. The people and the government are to blame for attempting to live beyond their means for so many decades. Germany is cutting spending massively - Obama is spending $634 billion as a down payment on universal health care entitlements. It does not appear to me that the US government is even considering facing the reality that there is no money left for entitlements.
4. The government took on $6.8 trillion in new obligations in 2008, pushing the total owed to a record $63.8 trillion.
Someone will have to pay for this. Maybe this generation, maybe the next generation, but reality will eventually make its presence felt. Unfortunately in this case it will not be gentle.