Total Pageviews

Sunday, October 9, 2011

Borrowing and spending will never solve the current economic problems

The problem with the economy is borrowing.  Individuals borrowed too much money for houses they could not afford.  Business borrowed to buy the bundled mortgages and lost money.  The government has a $14 trillion dollar national debt.  Japan has spent 10 years trying to borrow and spend its way to growth.  You can not borrow and spend to solve borrowing and spending.  We need real long term growth based on savings and productivity.  The idea that government creates long term jobs from borrowing is what is wrong. John Maynard Keynes is wrong and just gives politicians an excuse to borrow and spend.  More spending just delays the inevitable need to hit bottom before we can grow.  Keynes and his modern followers are the problem since they are the politicians enablers who justify the spending which must be ended.  Can we stop spending before we are in a crisis?  I do not know but if we do not we will follow the same path as Japan!   

Sunday, October 2, 2011

Electoral College

Every 10 years the House of Representatives is redrawn with the new census.  The number of electors each state gets is based on the number of Representatives and Senators.  So the 2012 electoral college will be the first new one after the 2010 census and this new map will make President Obama's reelection less likely since some of the States he won last time have lost electors.