Show Me The Money

If Paul Krugman is correct and the "Bush Boom" is ending, then the U.S. is headed into Stormy Waters. (Note to self: make sure that the printer delivers the "IMPEACH KERRY" bumper stickers promptly on November 3rd.) Not only is President Bush's budget deficit reduction plan dependent upon growing the U.S. economy, but federal spending itself is unlikely to stop growing thanks to rising interest rates and increasing numbers of foreign enemies. The Federal Reserve will print as much money as possible to keep the economy running on all three cylinders, but that in turn places pressure on the US dollar, thereby increasing prices of imported goods...which itself increases the pressures on American corporations to outsource our jobs even faster (click on list of outsourcing companies), thereby limiting job creation and fostering long term (permanent) unemployment in the U.S.  Full circle. Vicious cycle. Nasty stuff. "Liquidity Trap" and "Kondratieff Winter". May make the 1930's look like a church picnic in comparison.

Ironically, even though the U.S. appears to be severely constrained, economically speaking, the government continues to loot the Treasury with impunity.  Ultimately there will be a day of reckoning, or congressional hearings, but the guilty will not be punished or even required to return their loot.

How long can the corrupt political leaders of America keep the game going? John Kerry will inherit the biggest mess in the history of the republic and is likely to be followed in office by a Republican, who will blame Kerry for the Very Bad Things that happen between 2005 and 2009.

And so it goes...