The consequences of government’s need to “do something”

panic and freak outOne of the consequences of the government’s manipulation of interest rates is that these actions reward government borrowing and spending and penalize personal saving and investing. (And to you Barry Obama, “investing” is not the same as the government taking on more and more debt.)

As a result, savers face negative interest rates while the government continues to accumulate debt that can’t be repaid.

So the question of the day is this: where will your finances be standing when the music stops?

As long as governments have their own (that is, non-euro) sovereign currency and organizations like the Fed are allowed to buy up most of the money (and debt) that the government prints (and the associated debt they create), this is unlikely to change, at least until inflation wreaks havoc.

Of course the euro is different as it has many captains attempting to steer the ship. But when the euro fails, that is if/when Germany decides not to finance their own economic demise—and then, if/when the ECB can’t pull a rabbit out of its hat to try and finance the failed European welfare-state—what will the impact be to many American families? Simply this: not good.

Finally, it seems there is some sort of lesson about one world government embedded within all this concern that can be more fully teased out… maybe something like “it takes a village of idiots to destroy an economy,” or “you didn’t wreck that.”

Remember: an idiot with initiative is the most dangerous challenge our nation faces.


About Professor Mockumental

I enjoy almost all forms of parody, buffoonery, and general high-jinks. Satire has shown itself to be an essential societal need; I therefore humbly offer my services in such a manner. I enjoy mocking the usual suspects at the New York Times (Charles Blows, Moron Dowd, and the earth is flat guy) and Washington Post (Dana Milkbag, E.D. Dijon, and David Ignoramus). There are many others as well, but sadly, there are always too many targets and too little time.

Posted on August 7, 2012, in Uncategorized and tagged , , , , . Bookmark the permalink. Leave a comment.

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