What happens when you max out all your credit cards and still don’t have enough money to pay your bills? One thing you could do is get another credit card and roll over the balance. But how long will it be until no one gives you another card? How long before your interest rate goes from 12 percent to 30 percent?
That is the game the United States is playing right now. We are constantly rolling over short-term debt. When our lenders wise up and start setting our interest rates to reflect the risk we’ve become, access to capital will become harder for everyone. It will be more expensive to buy a house, fund a business, or save for the future.
The economy is in a free fall. Politicians know it and the public senses it. Fear is palpable in the eyes of politicians who tell us they have the answers. They know they don't and they know that we know they don't. They are just plodding along, hoping against hope to survive the coming election and maintain their office for another cycle. Unwilling to relinquish their hold on power, they will not get out of the way and let the economy go through the painful but necessary corrections - inevitable corrections which will happen later if not sooner - required before a recovery can begin to take hold.
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