Watch where they spend and not what they say
While words have effect, actions speak louder than words.
And while politicos may ramble on about what’s important (and at the end of the day, it seems everything is important), one can parse out what’s essential by observing where the money is spent.
For individuals, priorities are established via spending, saving, and investment decisions. And for politicos, priorities are established via spending and borrowing decisions. Yet for many in political office, there is one simple priority: re-election.
As the President and his minions have capably steered America towards the rocky shoals of sovereign default, it’s important to understand this: re-election rates are not any sort of reasonable measure of how well our nation is doing. From the above WSJ link:
As historian John Steele Gordon has written, our nation’s ability to issue debt helped preserve the Union in the 1860s and defeat totalitarian governments in the 1940s. Today, government officials are issuing debt to finance pet projects and payoffs to interest groups, not some vital, let alone existential, national purpose.
Read the whole article about how the Fed has become a fourth branch of government and the world’s de facto money market. The lesson is simple: something that can’t continue forever—like a command and control economy with unending deficit spending—won’t.