Thursday, July 29, 2010

War Economy

"The US economy and the well-being of Americans are being sacrificed to the regime’s wars," writes Paul Craig Roberts, Assistant Secretary of the U.S. Treasury during the Reagan Administration — US Treasury is Running on Fumes.

"With the US bankrupting itself in wars, America’s largest creditor, China, has taken issue with America’s credit rating," informs the Father of Reaganomics. "The head of China’s largest credit rating agency declared: 'The US is insolvent and faces bankruptcy as a pure debtor nation.'"

He also tells us that "[o]n July 12, Niall Ferguson, an historian of empire, warned that the American empire could collapse suddenly from weakness brought on by its massive debts and that such a collapse could be closer than we think." Dr. Roberts' conclusion: "Deaf, dumb, and blind, Washington policymakers prattle on about 'thirty more years of war.'"

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Blogger Mark in Spokane said...

Yup. Spot on and thanks for posting this realist view about our economy. There simply isn't enough money in the coffers to sustain the kinds of economic and military boondoggles that our government under both parties has lead us into. On economic policy, the government for the last 50 years abandoned the focus on an economy for America first -- the American plan -- developed by the early Federalists and their successors the Whigs and pre-progressive era Republicans. And in foreign affairs, both parties have long forgotten the wisdom of the three great Federalist leaders of our early Republic -- Washington, Adams, and Hamilton, to avoid "foreign entanglements" and un-winnable wars. And now the bills are coming due and there is no money in the bank. Bad news indeed.

But it is worse news to pretend that reality isn't what it really is.

1:24 PM  
Blogger Mark in Spokane said...

What makes Ferguson's analysis even more compelling is that he is a trained economist with a Ph.D. in the field. His sub-specialty is economic history, which is how he ended up writing the books that he is written. It is his interdisciplinary training that has given him the tools to compellingly argue that long-term attempts at overseas adventurism are always in the end disastrous for the great power that undertakes them.

1:07 AM  
Blogger The Western Confucian said...

Yes, but he has no Nobel Prize in Economics, like Paul Krugman, who couldn't for the life of him, figure out why the Crisis of '08-'09 happened, unlike non-laureates such as Marc Faber, Jim Rogers, Peter Schiff, Gerald Celeste, and Ron Paul, all of whom warned about the impending disaster for years.

12:03 PM  
Blogger Mark in Spokane said...

True, true!

1:13 PM  

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