America's place in the world has been
guaranteed not by what it produces but by
what it consumes. The American consumer has
been the locomotive that drives the global
economy. Now that engine has been derailed
by the reckless monetary policies of the Fed
and by shortsighted financial innovation.
When equity bubbles collapse; everybody
pays. Demand for goods and services
diminishes, unemployment soars, banks fold,
and the economy stalls. That's when
governments have to step in and provide
programs and resources that keep people
working and sustain business activity.
Otherwise there will be anarchy. Middle
class people are ill-suited for life under a
freeway overpass. They need a helping hand
from government. Big government. Good-bye,
Reagan. Hello, F.D.R. slowdown is here. It is
now. |
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