The first lie was the biggest whopper of all – that you could get rich by spending money rather than saving it.
The second was that the stock market would make you rich. All you had to do was to buy a well-balanced portfolio and hold for the long run.
When that one ran into a wall, along came the lie that you couldn’t lose money in real estate.
There was also the lie that the free market would make people rich…and if it didn’t, the authorities would force it to do so!
Then there was the lie that an economy saturated in debt could be stimulated to heights of prosperity by splashing on more debt.
And then there was the lie that you didn’t need real money in the system; the authorities could manage a flexible, paper money system so as to help maintain full employment.
And then, after half a century of adding cash and credit, when the Wall Street speculators cried and moaned, we were told that they were “too big to fail.” They needed to be saved.
Then came the lie that monetary and fiscal stimulus would lead to “recovery.”
When recovery didn’t come, we were told that QEI would do the trick – so they pumped hundreds of billions of dollars into Wall Street’s failed institutions. When it didn’t work, we got QEII.
And now, the federal government is headed to bankruptcy. We are told not to worry.
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