Thursday, February 10, 2011

What would the Romans do?

It isn't so much that the government is spending trillions upon trillions of dollars to prop up the economy, but rather to whom does the benefit accrue?

It certainly isn't the middle class, which is evaporating as food and energy prices continue to rise, while wages remain stagnant and unemployment remains high.

While the top 1% continue to sap the wealth of nations, the misery index could very well increase until a breaking point is reached. Where is that point? Who knows? Neither does anyone know what will happen when this hypothetical point is reached, only speculate.

Given the history of violence during times of civil unrest, and the protests in Europe, North Africa, and the Middle East, it isn't too hard to imagine. While the world waits to see which country will be the next to erupt in flames, no doubt contingency plans are being made.

This truly is a war of attrition, and of concern is whether the US will sacrifice it's own population in the interest of maintaining the balance of power and protecting entrenched interests, both public and private. Or whether sensible reforms will be undertaken to deal with out of control federal spending, and the mountain of unfunded entitlements our society faces. The only solution, as I see it, is to essentially balance the books through a bankruptcy process. Lay out the assets and liabilities, and settle the liabilities on a weighted percentage basis.

Since the average citizen accrues little in benefit from the federal government, settling the debt will be hardly noticeable other than having cast off the yoke of bondage. The entrenched interests, on the other hand, those on the receiving end of this vast transfer of wealth are the real challenge, and perhaps they would rather see the world burn than settle accounts, making the need for sensible reform even more vital to the health and well being of our nation and the world.

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