Wednesday, April 30, 2014

We Have Redefined Our Liabilities As Assets And Declared Victory

Like with our deteriorating educational system, our economy no longer measures up to previous standards of performance. In education, you can see the difference through comparison to a century old Jr. High School test that I believe would stymie most of today’s college graduates. Our economic deterioration can be seen in our high trade deficits, big budget deficits, high public and private debt levels and the explosion in the number of people who rely on government assistance be it in the form of welfare, food stamps, or disability.

However, according to many economists, none of this is cause for concern as it is simply the way things work in our new “consumer-based,” “service-sector,” economy. Instead of growth through savings, capital investment, and production, we now rely on money printing, asset bubbles, leverage, and consumer credit. Inflation, which was once acknowledged as being bad, is now considered good. Persistent trade deficits, once a sign of economic distress, are now considered signs of strong domestic demand. Instead of dealing painfully with intractable problems, we have redefined our liabilities as assets and declared victory.-Peter Schiff: http://www.lewrockwell.com/2014/04/peter-schiff/forget-college-2/

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