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HomeAmerica’s Ticking Deficit Time Bomb
Posted by Larry Doyle on September 10th, 2012 8:35 AM |
A few weeks back as my son was preparing to go back to college for his second year we discussed the prospects for America’s future. As with many within his peer group, he is very interested in a wide array of social and economic issues of the day.
After touching upon some of these issues, I then directed his attention toward the clock just to the left of this commentary that runs every second of every day. That clock measures our collective level of indebtedness without incorporating the costs of our entitlement programs.
I informed my son that the compounding cost of the debt was nothing more than a choke hold on opportunities for him and all of those in his generation and other generations to come. (more…)
Fiddling While the United States Burns
Posted by Larry Doyle on April 8th, 2011 7:45 AM |
Ben Bernanke’s grand economic experiment of quantitative easing is nothing more than a policy of implementing negative real interest rates. That policy may provide support to puff the markets but it also promotes a very real transfer of wealth and income. The simple fact is quantitative easing and negative real interest rates as a formal monetary policy are neither practical nor sustainable over the long haul.
What do I view as a very real and dangerous consequence of Bernanke’s policy? I am of the strong opinion that Bernanke has created a facade behind which many in Washington and around the country continue to “fiddle while the United States burns.” We evidence this fiddling reality in the midst of the petulant and pathetic budget debate ongoing in Washington. While our leaders nitpick over pennies in order to ‘keep the lights on’, the destructive structural deficit our nation faces casts a very long shadow across our nation’s entire landscape. I firmly believe that many politicians have little true appreciation for that reality. (more…)
