This great lecture, at end of the day, will come and go, and the moron Politicians and the even more idiotic public will simply ignore it. People do not realise that they are spending money which belongs to our children and our grand children. Did you know that the current conservative government has taken on more debt in 4 years than the entire Labour government in the last time over 13 years? What the hell is happening?
The heart of the matter is the way public debt allows the current generation of voters to live at the expense of those as yet too young to vote or as yet unborn. These mind-boggling numbers represent nothing less than a vast claim by the generation currently retired or about to retire on their children and grandchildren, who are obligated by current law to find the money in the future, by submitting either to substantial increases in taxation or to drastic cuts in other forms of public expenditure.
If young Americans knew what was good for them, they would all be in the Tea Party.
The present system is, to put it bluntly, fraudulent. There are no regularly published and accurate official balance sheets. Huge liabilities are simply hidden from view.
Not even the current income and expenditure statements can be relied upon in some countries. No legitimate business could possible carry on in this fashion.
Western democracies are going to carry on in their current feckless fashion until, one after another, they follow Greece and the other Mediterranean economies into the fiscal death spiral that begins with a loss of credibility, continues with a rise in borrowing costs, and ends as governments are forced to impose spending cuts and higher taxes at the worst possible moment.
In this scenario, the endgame involves some combination of default and inflation. We all end up as Argentina.