Clarke and Dawe Explain the European Economic Crisis

Debtors loaning to debtors will bring prosperity to all? Please, if you believe this, donate all your savings to this website and we can save the planet!

There Is No Money

Most voters don't know and don't care. Politicians do know but don't care. There are no negative sanctions for continuing to pooh-pooh the inescapable reality of the unfunded liabilities of all Western governments. There are instant negative sanctions for any politician who admits the truth and publicly calls for the immediate reform and partial default of these programs. No one in the electorate wants to face the truth: either granny will get stiffed near-term or the working-age voters will get stiffed long-term. Voters want to delay the cuts now, on the assumption that the can will be kicked down the road indefinitely. They discount the inevitable future for the sake of present bailouts.

This mentality subsidizes the expansion of private lending to governments. This is why the United States government can borrow for ten years at a rate below 4%. This is why capital is pulled out of the private sector in order to fund the delay of the inevitable bankruptcy of Western governments.

The truth is out there but no one wants to listen and few dare speak it.