What He Said.

RealClearMarkets – A Federal Budget That Insults All Budgets

The government has no resources. Everything it spends was created by private individuals and still belongs to taxpayers. All government can do is take from the industrious, the inventive, the hard-working and the frugal to dispense on the inefficient, the lazy, or the irresponsible. Government spending bites the very hand that feeds it.And these resources no longer exist. We’re now over $12 trillion in debt. Including future unfunded liabilities and those Washington assumed as a result of assorted bailouts and other mischief, the average family owes $471K and counting courtesy of government. The resources are gone.

Democrats wasted them on silly, self-defeating welfare programs and Republicans wasted them on silly, self-defeating foreign policies. Sometimes in fits of bipartisanship, they combined to waste them on even greater concepts. Government has no remaining resources, but to our peril it does have a printing press.

No matter what grandiose terms our elected leaders couch it under, there are only three ways to pay for this largesse. Certainly they can deprive productive enterprise of the resources necessary to generate economic growth via confiscatory taxes. But the disincentives ensconced in progressive taxation render it self-defeating. Washington can borrow, thus diverting capital from those endeavors actually prospering society. Another economic retardant. Or, they can inflate their way out of the mess by debasing our currency.

But remember; “Things appear to be the darkest just before they go completely black.”

It’s going to be like the 2008 crash. No one will see it coming until it’s here. Then it will seem obvious.

Yeah, it’s Bush’s fault. As well as every President since Herbert Hoover. We heard the story of killing the golden goose but never understood it.

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