Serious resistance to Federal spending is over. There will be debates over which groups get their hands into the bag of loot, but the bag will surely grow.
The House Ways and Means Committee and the Senate Finance Committee do not officially ask, let alone answer, the following questions:
- Who will invest in this debt at today's interest rates?
- Will these investors be private Americans?
- Will Asian central banks buy this debt? (Have they already begun to sell it?)
- Will the Federal Reserve System buy this debt with newly created money?
- How high will interest rates go? How soon?
- How will this debt be repaid? (Joke!)
- How will the government be able to roll over this debt from now until Doomsday? (When is Doomsday?)
- What effect will investment in Federal debt have on the cost of capital in the private sector?
- If the private sector cannot attract capital at low rates, what effect will this have on future production?
- When will these trillion-dollar annual deficits end?
Because such questions are considered fiscally naïve, the committees do not hold hearings on any of them.
Gary North pontificates on coronation inauguration day and what's ahead for Obama. Hint: it's a grim assessment. Mr. North thinks we have reached the point of no return. You may be surprised to find out when he thinks it happened.
No comments:
Post a Comment