The Largest Systemic Risk to USA Economy: Our Federal Debt

Posted on October 14th, 2009 by admin in Political Economy

A recent article is called “Washington is Nuts”. It makes an elegant point about how (apologies to Ross Thomas), regarding the financial crisis, “the fools in town are on our side.”  Here’s the lead-in:

Want to hear a real laugher? Despite the current disharmony in politics, there’s one policy on which all of Washington agrees. Republicans and Democrats, House and Senate, president and Congress all agree that after last fall’s financial crisis, the federal government has to regulate the financial industry more closely to protect our economy from risk of systemic financial collapse.

Here’s the joke. As boom- and bust-prone as high finance always has been and remains, the greatest systemic risk to our economy is not Wall Street. It’s the growing federal debt (and weakening dollar) being enacted by those Washington politicians — the ones who want to protect us from Wall Street.

The piece was written by Tony Blankley and you can read it here.

Our financial situation is breathtakingly unsustainable. You really need to pay attention to preserve and grow your capital.

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