I’m afraid that there’s no easy way to stop the debt avalanche now that it has begun. Trillions have been committed, tens of trillions more of entitlements and other debts stand to hit us during the years to come. We’re entering a deep, protracted global recession and deficit spending on pork barrel legislation will not have any tangible stimulative effect. Instead it creates the potential for a depression when US Treasury bonds suffer from a lack of confidence and the government is no longer able to borrow to pay the interest on its ever growing debt.
I’ve done everything I can, writing the media, my elected representatives and trying to stir the minds of those I know with economic discipline. There is no quick fix for this crisis, it will be difficult for every single hard working American. Mortgaging the next generation’s future to prop up the corrupt edifice of insolvent banks and bail out home buyers who never should have gambled is a terrible approach to the underlying problem.
Capitalism is not dead, but any company, individual or even government that cannot sustain itself must be allowed to fail. That is one of the most important and fundamental underpinnings of American capitalism. Socialism will not be an effective stick save. It engenders an environment where the most innovative are allowed to fail in favor of those who cannot compete.
America is still a great country and our dollar is still the reserve currency of the world. In order to keep our economy the global leader we cannot spiral out of control with debt, but instead must reign in spending on all fronts and embrace an era of thrift while we recover our bearings and wealth.