Debt -- Why The Economy Will Get Worse

Is our economy turning around? Despite what Obama and the Democrats would like you to believe, and despite what minor tweaks the Republicans want to throw in -- even if they could -- don’t believe it. Remember, none of these people saw any of this coming, much less were properly explain it. Why would you listen to them now?

Politicians are only capable of telling people what they want to hear, not doing the hard work of examining the problem at it’s root causes. Therefore, we continue on the same course. When the only solutions offered to fix our debt problem include more spending -- not less, how can any sane person expect things to get better?

In the last decade, we have had a tech bubble and a housing bubble, and now, get ready for “another ‘Grand’ bubble,” warns Texas Representative Ron Paul. “The next event will be a “dollar” crises...The addiction to easy credit and deficit defies a wise political solution. Politicians are incapable of delivering the message of frugality, common sense and sound money.”

Indeed. It does not take an economist to figure out what happens when you flood the market with more and more money. Things may seem to be turning a corner, but don’t be fooled. Until our politicians reign in the Fed and stop the printing presses from flooding the planet with US Dollars, our economic future will continue it’s downward spiral.

Also, don’t fall for the so-called economic indicators that point to a supposedly recovering economy. Government and consumer spending do not equate to economic growth. Until our economy actually sees the value in actually producing something, real growth will not happen.

With more money and more borrowing, of course our spending has gone up. Spending borrowed money is not indicitive of an economic recovery. As individuals, we know we can not borrow our way into wealth. Why would we think the government can transcend this economic fact?

There are only three ways to fix our over-exuberant, debt-based economy: 1.) Do the responsible thing and pay down our debt, 2.) Default on our ever-growing debt, or 3.) Print more money.

Which choices do you think your elected officials are going to make? Don’t expect option number one. That would require politicians to not only reign in the spending on the programs that get them elected, but would also require them to ask you to be responsible for your own actions as well.

They won’t do that. They are too busy telling you that you can have your cake and eat it, too. Afer all, that is the very definition of what politicians do.