Tuesday, December 3, 2013

What Will Happen When The Debt Piper Calls To Play His Tune?

"I place economy among the first and most important virtues and public debt as the greatest of dangers to be feared.  We must not let our rulers load us with perpetual debt.  We must make our choice between economy and liberty or profusion and servitude."

          Thomas Jefferson (1743 - 1826)

In the profusion of gubment debt, particularly over the last five or six years or so, what has been our (and by "our" I mean the people) choice?  Have we had a choice?  Do we have a choice?

Don't tell me that we do.  My vote cannot elect much in the way of influence or sway when gubment is particularly disposed to spending.

We have, to use Mr. Jefferson's word, "perpetual" debt out the ears.  Entitlement debt, foreign debt, interest debt - you name it.  Perpetual!  And it is larger than many imagine, and worth generations of effort to eliminate it.

And it is growing!

So this "choice" of "the people" has been servitude.  Well, we didn't actually make the choice as "the people."  It was made for us!  In our, um, best interests!

Really, our best interests? Profligate and senseless, politically-motivated spending is in our "best interests?"

Gubment debt is no different than household debt really.  The debt piper will soon call to play his tune.  And when our ability to pay is outstripped by our need to pay, what do we do?

This gubment will blame others! 
This gubment will say it isn't debt at all! 
This gubment will ask us all not to look behind the curtain!

Because, after all, we the people would be wrong to question the brilliance of our "leaders."  I use the word leader very, very loosely.  Perhaps incorrectly.

We are being led, for sure.  Down a path of destruction.  And servitude.  And it is intentional.

We are NOT led to economy and liberty, as Mr. Jefferson feared.

What happens when a household's ability to pay its debt is outstripped by its need to pay? 

The very word economics comes from Greek words which, when put together, mean "household management."  The household may be the very definition of microeconomics.

And when households "manage" to get into terrific and un-payable debt, what do they do?

In our society they foist it onto others!  It gets blamed on advertising, credit cards, easy credit, financial predators, misunderstood contracts, you name it!  What doesn't get blamed is profligate and senseless and tyrannical and irresponsible spending.

Do we expect our gubment, when the day arrives that debt is greater than the economy's ability to produce payment, as surely it will, do we expect our gubment to act differently?

Well, do we?

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