Doomed to Fail

HOW COMMON SENSE AND PERSONAL EXPERIENCE TEACH THAT THE STIMULUS PACKAGE IS DESTINED TO FAIL

Many things (admittedly not all) that we experience in our personal lives can be extrapolated to the world at large and government in particular. This goes especially for economic things. Personally, or macroeconomically, one can NEVER borrow their way to prosperity. Any apparent prosperity is just that apparent, with no more connection to reality than a computer generated visual effect in a movie or television show.

Case in Point: A person (mea maxima culpa) is given credit cards which he then uses to "enhance" his living standards. He (or she) eats at better restaurants more often, goes on nicer vacations to nicer places, has nicer appliances and computers and televisions, etc. Now all of this happens s-l-o-w-l-y, over many years. Then suddenly, the credit cards are maxed-out, and he can't "afford to live". Worse yet, the bills are due! But just in time, an exciting offer comes through the mail, giving him an opportunity to move his balances to a NEW card, and have more available credit to live off of. The cycle repeats several times and eventually you have a person who cannot POSSIBLY afford to pay the money back. What follows is bankruptcy, and years of living much much lower "on the hog" and hopefully a long, slow recovery from the addiction.

WELL.... what we have seen in the past 30-odd years is that whole situation writ-large. Our government, through sdeficit spending, has been pumping BILLIONS of borrowed money every year into our economy, making us all appear more prosperous. Whether it was easy money for constuction loans, or mortgages, or money for the military, or for social programs - whatever they spent money on. It all served to "pump up" the economy, like a sugar rush pumps up a child - or speed pumps up a user. But now - RIGHT NOW - is the point where we are used up. Tapped out.

The bottom line is, this "stimulus" is doomed to fail, or at least doomed to ultimately fail, one that bit of fake money is used up. So my economic advice to anyone reading this is... GET READY! Because as soon as this plays out (however long it lasts) it's gonna be really really ugly.