Jesurgislac’s Journal

September 25, 2008

I don’t understand economics

But I especially don’t understand this:

The US National Debt is currently $9 795 830 535 000 and rising: that is, nine trillion seven hundred and ninety-five billion, eight hundred and thirty million, five hundred and thirty-five thousand dollars that the US already owes. (See the US National Debt Clock for the current figure: between September 2007 and September 2008, it’s been rising by an average of $2.17 billion per day.)

Given that, how could anyone imagine that you could make the economy better by inventing money that the US doesn’t actually have, and offering to buy assets that don’t really exist?

Of course that may not be the point. Avedon at Sideshow linked to that scary prediction from 2005 that Julian “Never Been Wrong” Robertson predicted “utter global collapse” within 10 years as a consequence of the bursting of the world-wide property bubble.

And for much of this “doom”, interestingly, he blames the Bush-Cheney “regime”. “They have now consolidated power and money on the planet to the maximum extent possible. The planet’s net liquidity, that is its, net free cash flow. Is now a negative number. The planet is not simply sinking into a sea of red ink; it is already sunk. The people just don’t realize it yet,” he said.

According to Robertson, “the Bush-Cheney regime is preparing the nation for transition from democracy into dictatorship because a dictatorship will be necessary to control, in 5 years time, food and water riots.” He said “the federal government, that part of Patriot II Act, the internal exile, that the government is going to have to build now huge detention compounds on federal lands, probably in the West where the land is available, to potentially house 50 million or more citizens that will be in financial ruin.”

In 10 years time, whoever is left will be effectively starting again, he said. “More importantly, and I’m trying to think how we imply this or how we express this to the people, what extraordinary times we are living in and how the destruction of the planet has been engineered by the Bushonian Cabal from 1980 to 1992, and then from 2001 to present, which has effectively destroyed the economic liquidity of the planet,”
he said. link

If you just ask for $700 billion dollars with three page memo, it suggests you don’t expect to be refused. And certainly, Bush is not in the habit of accepting a refusal from Congress to let him have whatever money he’s told them he wants.


  1. wow, this could not be more inaccurate. it wasn’t bush that caused the financial crisis we’re in and anyone that thinks that obviously (as the header suggests) does not understand economics. bush did not give out subprime mortgages to people that clearly could not afford them; this was done by bankers and loan officers. the easy availability of credit is what caused housing prices to soar. then, it was not bush that sold off mortgages in collateralized debt obligations, it was the same bankers, and it was not bush or the government that bought them, it was investment bankers on wall street. then, when borrowers began to default, the investment banks/mutual funds/etc that had purchased the CDO’s began going bankrupt. this caused the credit crunch that is currently going on because lenders are now too worried to lend to anyone because of the high risk that the borrowers may go bankrupt due to their risky assets on their balance sheets. and by the way, bush had nothing to do with the ‘3 page memo’ for the bailout (which was denied and then revised to be much, much longer); the only part he had in it was signing it into legislation once the house approved it. [abusive last line deleted]

    Comment by rob osborn — November 21, 2008 @ 4:03 pm | Reply

  2. Hi rob: As I understand it, however, it was Bush’s administration and the Republican party who pushed for deregulation of the financial market that allowed bankers and loan officers to give out subprime mortgages to people who could not repay them.

    I deleted the last line of your comment because it was abusive. Further abuse may mean comments are deleted whole and entire.

    Comment by jesurgislac — November 21, 2008 @ 4:07 pm | Reply

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