page-loading-spinner
Home Sustaining the Unsustainable
Uncategorized

Sustaining the Unsustainable

The User's Profile Chris Martenson October 3, 2009
6
placeholder image

Every so often I read an article that very nearly perfectly reflects my views on the bailout and stimulus packages.  This is one of them, at least from the perspective that we’ve really solved nothing but instead are actually deeper in debt than before.

How is it possible to solve a crisis rooted in debt by going deeper in debt?

That’s a good question, and more and more financial professionals are asking the same thing.  The following article is well worth reading in its entirety at the link below.  Be sure to pay attention to the last sentence, as we’ll be spending some time on that very topic over the next few weeks.

AMERICA DIGS DEEPER INTO DEBT

(September 21, 2009) It’s amazing but true. Even after all we’ve been through and all we have supposedly learned about the danger of being over leveraged and borrowing more than you can pay back, we are still piling on debt.

 

I know that’s not what you hear in the media. Wall Street and Washington are busy telling you that we are continuing to pay down debt and the health of the country’s balance sheet is improving. The truth is that consumers and businesses are paying down debt but their budgetary prudence is more than being offset by the profligacy of the government.

We can see from the Flow of Funds quarterly report put out by the Federal Reserve that households are reducing their debt at a 1.7% annual rate and business at a 1.8% annual rate.

The rest is exclusive content for members

Curious about what being a member offers? Sign up now for a risk-free trial and get a sneak peek into the premium content, features, and perks awaiting you on the other side.

Community

Top Comment

What a sytem we have. A system that keeps trying to find anyway possible to take more from the working productive people to give to...
Anonymous Author by idoctor
0
Image | The Grow Network

The Grow Network

Learn more
Image | Gold Newsletter

Gold Newsletter

Learn more