The Federal Absurd

I came upon a fine interview, as I agree with it, so permit me to link you to Seeking Alpha.  Just click on the title.

Here is an excerpt:

...HRN: What would you recommend that the Federal Reserve do differently?

Dr. Marc Faber: The first action Mr. Bernanke should take is to resign. If I had messed up the system so badly, as he has done, I would have to resign. He has talked constantly about the Great Depression and what caused the depression but the problem is that he really doesn't understand what caused the depression, which was also excessive leverage at that time. I have to stress that in 1929 the debt to GDP ratio was of course minuscule in comparison what it is today. It was 186% of GDP but you didn't have Social security, Medicare and Medicaid and unfunded liabilities for Social Security and so forth. So, debt today, as a percent of GDP, is 379% and if you add the unfunded liabilities we are at over 800%. The Federal Reserve should pay attention to that.

HRN: With debt levels and liabilities so high, what solution is there for the United States?

Dr. Marc Faber: The solution is, basically, for the government to move out and not intervene in the economy.... 

I should put this in an Irregulars' email. 


People have to revert back to common sense and flee from Harvard Keynesian delusion. Unfunded debt is swtill debt.  One more time:

800 PERCENT OF GDP

I mentioned this before and no one bothered to attack it.  Either we all know this or, as I suspect, no one wanted to engage me our of fear.  Most of us think about what to do in a box, knowing there is another box outside of it, so we want to invest and then hunker down. The problem is there is no other box. Outside this one is anarchy, as many desire.  What follows this are massive taxes, and government control.  So, think seriously about that 401 k and the fear of a tax penalty for protecting your assets. 


The fat lady sang and is on the bus home.