Sunday, November 30, 2008

Injecting Failure

The "injections" into the financial system will not lead to an economic turn around, but they will lead to massive increases in the national debt.  In September, the National Debt Clock in NYC ran out of digits as the figure ticked over $10 trillion.  In this article Jim Puzzangherra states that:
"Interest rates remain low because of the crisis, but they will rise, particularly when the U.S. Government starts borrowing more money to cover its growing debt..[this] could cause inflation to increase as well."
This is all just part of the "win-at-any-cost approach" that has been adopted by the current (as well as the future administration) in response to the "financial crisis".  

These injections are demolishing the financial system because they are destroying the very forces that allow it to be effective.  In doing this the government is also creating a mountain of debt that will eventually have to be paid off.  




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