I recently was included in an exchange of emails between two friends, and was so impressed by the insights contained and the ideas expressed that I immediately requested permission to publish the emails on Grand Rants. Permission from both authors having been received, I am pleased to present Part One of Point:CounterPoint:Repoint. Parts Two and Three will be posted tomorrow and Thursday. Enjoy!
Friday, Nov. 27, 2009
I’ve been thinking about this for some time now, and writing about it ad nauseum – U.S. and global economic disaster. I think it might be wise to rethink the approach to this issue.
I was watching an interview Beck did with Art Laffer, one of Reagan’s chief economic advisors, and it was absolutely chilling. Laffer spelled out the financial disaster that lies before us, and he says that at this point, it is inevitable. (Understand that Time Magazine called Dr. Laffer one of the 100 greatest minds in America in the 20th century.) The damage has been done, and all we can do now is stall the disaster. Combine Laffer with former U.S. comptroller David Walker in 2007, and the handwriting is on the wall. (Please, please, please watch this all the way through. And Mr. Walker’s timeline has been shortened lately.)
So, maybe it’s time to put down the flag and the agenda and take a deep breath. Maybe we should take a different tack from, “If only Obama lost…” and “GOP=good, liberals=bad”. This is for real and it’s coming at us at warp speed. According to Laffer, there’s nothing left to be done now.
Hey! Here’s a “bright” spot, our economy isn’t the closest to the brink amongst the industrialized nations – Japan’s is. The dark spot on the bright spot is that Japan holds more than one trillion dollars of our debt – when they fold, we fold, or vice versa. And if either of us folds, goodbye world economy! Add to that the aging of both countries and guess what? At least we can open our borders and let in all the young Mexicans – their work can literally hold back our fiscal crisis a little while.
My point being that so much of what we write about is micro-oriented. According to Laffer and Walker, micro doesn’t matter anymore. The iceberg “Macro” has slashed a tear into this ship of state, and throwing all the stuffed shirts in Washington into the gash won’t stop the sinking. Maybe we should just focus on dealing with the upcoming disaster.
I don’t know what is going to happen. No one does. The world simply has never seen something like this before.
It’s interesting to note that GW Bush gave China “Most Favored Nation” trading status; that the first place SecState Hillary went to was China; that Obama just got back from China; that the Chinese openly expressed concern about our debt… One thing is for certain: When all hell breaks loose—and it will—China and Russia will be calling the shots.
I don’t know what to write anymore. America is ignorant, hubristic, in denial, agenda pissed, and agenda blind all at the same time. But I do think we need to face the facts. We are sinking… Warm up, “Nearer My God to Thee”.