Post by blueneck on Feb 19, 2008 20:49:32 GMT -6
By Charley Reese From American Economic Alert
By CHARLEY REESE
Published Monday, February 11, 2008
One of the older books on my shelves is "A Short History of the United States" by John Spencer Bassett, a professor at Smith College, and revised by his son, Richard Bassett. It was published in 1938.
It is interesting to note what the book had to say about the causes of the Great Depression, which began with the stock-market collapse in 1929:
"The accumulation of debt throughout the country, in farm districts and city districts, in private enterprise and in local governments, had grown larger than the national income could endure. Farmers had mortgaged their farms, wage earners had bought on the installment plan, small and large investors had borrowed to speculate, companies had borrowed to expand, railroads had a long heritage of debt, municipal governments had borrowed heavily for roads and public buildings; the national government finally in spite of reductions was still carrying a large debt from the war. The boom psychology - and credits to foreign buyers - had sustained this edifice for a few years, but when it crumbled at one point, the interdependence of the parts caused the rest to follow."
Some years ago, I went into my newspaper’s morgue and dug out the microfilm of the papers published in October 1929 and read them page by page. There was not a hint of the coming crash, but there were several statements identical to those we often hear today - to wit, "The economy is fundamentally sound." Every time I hear a politician say that, I get nervous
.
How can an economy be fundamentally sound if it is buried in debt? The national government’s debt is about $9 trillion, and that doesn’t include its obligations for such entitlement programs as Social Security and Medicare. Corporate and private debt is also in the trillions.
Another oddity of our situation is that despite all this debt, which represents claims against future income for past expenditures, many governments are complaining that they don’t have enough money to repair infrastructure and to meet their program needs.
Where, then, did all the money go?
I don’t know if we’re heading for another depression. I do know you cannot count on the big banks and the Wall Street insiders to tell you the truth. Or the national government, for that matter. I do know there is too much debt, and it would behoove us to pay it off as quickly as we can. I do know that when you keep hearing people say the economy is fundamentally sound, it’s time to worry that it’s anything but sound.
At the end of World War II, we were the top dog. Our country had not been damaged. Europe and Russia were in ruins; so were China and Japan. Today, Europe, Russia, China and India - to name four - are tough economic competitors. We’re dependent on oil imports. Our currency is losing its value. We continue to bleed manufacturing jobs.
If for none other than economic reasons, we should get out of Afghanistan and Iraq and make doubly sure our current president doesn’t get us into a war with Iran, something he’s quite capable of doing. His warped mind continues to exaggerate the dangers we would face by ending our occupation of these countries. In my opinion, if we pulled out, we’d be safer, and so would the Iraqi people.
Rep. Ron Paul was exactly right when he said we should dismantle our empire. We simply don’t need permanent military bases in Germany, Japan, South Korea, the Balkans and the Middle East. The Pentagon admits to more than 700 foreign bases. This dispersal of military forces is expensive and unnecessary for our security.
Americans better insist on a national government that has America and its needs as its only priorities. Foreign wars, foreign aid, foreign military bases and other forms of foreign assistance need to be zeroed out of the American budget. The rest of the world can take care of itself.
The question is: Can we take care of our own country?
--------------------------------------------------------------------------------
Former Orlando Sentinel columnist Charley Reese writes for King Features Syndicate.americaneconomicalert.org/news_item.asp?NID=3059612
By CHARLEY REESE
Published Monday, February 11, 2008
One of the older books on my shelves is "A Short History of the United States" by John Spencer Bassett, a professor at Smith College, and revised by his son, Richard Bassett. It was published in 1938.
It is interesting to note what the book had to say about the causes of the Great Depression, which began with the stock-market collapse in 1929:
"The accumulation of debt throughout the country, in farm districts and city districts, in private enterprise and in local governments, had grown larger than the national income could endure. Farmers had mortgaged their farms, wage earners had bought on the installment plan, small and large investors had borrowed to speculate, companies had borrowed to expand, railroads had a long heritage of debt, municipal governments had borrowed heavily for roads and public buildings; the national government finally in spite of reductions was still carrying a large debt from the war. The boom psychology - and credits to foreign buyers - had sustained this edifice for a few years, but when it crumbled at one point, the interdependence of the parts caused the rest to follow."
Some years ago, I went into my newspaper’s morgue and dug out the microfilm of the papers published in October 1929 and read them page by page. There was not a hint of the coming crash, but there were several statements identical to those we often hear today - to wit, "The economy is fundamentally sound." Every time I hear a politician say that, I get nervous
.
How can an economy be fundamentally sound if it is buried in debt? The national government’s debt is about $9 trillion, and that doesn’t include its obligations for such entitlement programs as Social Security and Medicare. Corporate and private debt is also in the trillions.
Another oddity of our situation is that despite all this debt, which represents claims against future income for past expenditures, many governments are complaining that they don’t have enough money to repair infrastructure and to meet their program needs.
Where, then, did all the money go?
I don’t know if we’re heading for another depression. I do know you cannot count on the big banks and the Wall Street insiders to tell you the truth. Or the national government, for that matter. I do know there is too much debt, and it would behoove us to pay it off as quickly as we can. I do know that when you keep hearing people say the economy is fundamentally sound, it’s time to worry that it’s anything but sound.
At the end of World War II, we were the top dog. Our country had not been damaged. Europe and Russia were in ruins; so were China and Japan. Today, Europe, Russia, China and India - to name four - are tough economic competitors. We’re dependent on oil imports. Our currency is losing its value. We continue to bleed manufacturing jobs.
If for none other than economic reasons, we should get out of Afghanistan and Iraq and make doubly sure our current president doesn’t get us into a war with Iran, something he’s quite capable of doing. His warped mind continues to exaggerate the dangers we would face by ending our occupation of these countries. In my opinion, if we pulled out, we’d be safer, and so would the Iraqi people.
Rep. Ron Paul was exactly right when he said we should dismantle our empire. We simply don’t need permanent military bases in Germany, Japan, South Korea, the Balkans and the Middle East. The Pentagon admits to more than 700 foreign bases. This dispersal of military forces is expensive and unnecessary for our security.
Americans better insist on a national government that has America and its needs as its only priorities. Foreign wars, foreign aid, foreign military bases and other forms of foreign assistance need to be zeroed out of the American budget. The rest of the world can take care of itself.
The question is: Can we take care of our own country?
--------------------------------------------------------------------------------
Former Orlando Sentinel columnist Charley Reese writes for King Features Syndicate.americaneconomicalert.org/news_item.asp?NID=3059612