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a loan an actual exchange, an actual service rendered by the lender, and which makes the borrower liable to an equivalent service,--two services,

   --  Frédéric Bastiat

The more the government interferes the more it makes things worse. We have a phoney economy built on debt.

Problems in making cuts in government expenditure

Today's Western democracies now play such a large part in redistributing income that politicians who argue for cutting expenditures nearly always run into the well-organised opposition of one or both of two groups: recipients of public sector pay and recipients of government benefits.

The hole in the argument for more debt

If debt was the answer, we would never have a problem, just keep borrowing.

Credit and Government

  • Obama claims credit is the lifeblood of the economy, but actually it is proving to be a cancer
  • Credit comes into existence through savings
  • The reason credit is gone is because savings have gone, when the US ran out of its own savings, the securitisation process allowed the US to acces foreign savings
  • You can't skip the savings and go right to the borrowing and spending
  • Credit needs to go to producers so it can be paid back with the proceeds of growth.
  • Politicians claim that the books need balancing, but at the same time keep borrowing.
  • Government stimulus is really a depressant.

The moral argument against debt

No parent would borrow off their child, but what the government does is worse than that, it allows people to steal from their children. It is a form of child abuse.


David Walker - America on Brink of Bankruptcy

David Walker - America on Brink of Bankruptcy

  • Controller general of the USA says the standard of life cannot remain
  • How can the government ask us to be responsible if it is not.
  • The crisis is not immediate, but it is a fiscal cancer and it will have catestrophic consequences
  • We cannot afford the promises we have made, let alone pile on top of them

Ways of showing public debt (US debt)