Below is the same graph as above, but updated through the beginning of November '08 (no, the chart is not blank, look at the blue spike at the far right - that is the "bailouts" alone and do not even include "Porkulous"):
Posted on 02/13/2009 8:31:07 PM PST by shield
This bubble of government makes all other economic bubbles that have come before seem puny by comparison. Furthermore, this bubble is uniquely world wide. As liquidity is running out and credit is drying up, many nations are in a chain reaction realizing the hot air on which their financial and political systems stand. In any case the dreams of Obama, the RINOs, and the Democrats will become painfully deflated as the era of big government comes to a close.
All bubbles come to an end when the liquidity is no longer available. After a certain point the bubble cannot be stopped by outside forces, but it does stop when the available resources are no longer available. It is like a fire that rages until the fuel is spent.
By all these measures, we have a Government Bubble that is popping.
Dot.com stocks and tulips are not the only things that can lead to financial bubbles. Governments can also be the focus of financial mania. Our global credit crisis is in reality a government bubble in the process of popping.
There are signs when a bubble exists:
1) On the face of it, a bubble looks illogical. You wonder are people crazy or are you just too old fashioned to understand. After all "It is hard to argue with success." People who buy into it are afraid of missing out when their friends and relatives are all benefiting. There is a herd instinct.
(Excerpt) Read more at dagnyd.net ...
You’ll find this article very interesting.
Folks...it’s over. Obama has screwed up BIG TIME with this bill. I mean how can we possibly get out from under this? We will need a revolution I imagine...
ping
The -0bubble ???
Good article. We’ve been living on borrowed time for quite some time. Our side is better prepared to deal with what is coming. We have no false gods.
You might want to read other articles at his site...http://dagnyd.net/
Massive government budget cuts ...
Obama, McLame, it makes absolutely no difference. We would be in exactly the same position no matter who was president. The only person who would have made a difference would have been Ron Paul. I was not a Paul supporter at all during the primaries, but did agree with his embracing of the Austrian School of Economics. If Calie was serious about balancing its books, here’s a few things it could do, 1) end lifetime health benefits for retirees, 2) end pensions and distribute what’s left and start 401k type plans, 3) end every unnecessary department of government, 4) Sell off every piece of government land and property available,5) eliminate the sales tax, 6) eliminate the income tax and finally 7) make the legislature part time and require them to pass all laws by a 2/3 majority.
Aside from police protection, it would be nice to have the government pave the roads and keep the bridges from falling down, all they haven’t done a great job of this recently.
Oh and finally, institute vouchers for education.
Maybe eveything politically is wonderful.. the system might right itself..
A "hard rain is gonna fall",, -Bob Dylan
Don’t kid yourself, Paul in this environment also could not have done anything whatsoever. We need this bubble to pop...and like Dagny said it already has they just don’t know it yet.
I agree....BO is failing not even 1 month into all this...and the people who thought he could change things were such fools....believing the media whores...looks like this blatant gangster crap taking place in full view for all to see will bring it all to a close quicker...what a joke.
I mailed my check to SarahPAC on her birthday, Feb. 11.....
True but the thing that bothers me is the huge cult following this Kenyan illegal alien has. Cults are weird BUT they can be handled with enough...enough...ammu...BAILOUT! Yeah, that's it!
You’ve got to have money to do that....this article says it just ain’t there........
“You’ve got to have money to do that....”
http://research.stlouisfed.org/fred2/series/BASENS
Hmmm, looks to me like the Fed has plenty of money. Maybe this chart explains the reason for printing of new currency and the reason for passing the stimulus bill !
Duh !
This is stupid talk. A ‘government’ bubble cannot pop, as they control the ‘creation’ of money.
By ‘creation’, I mean the printing of little bits of paper that the citizenry use to purchase their daily necessities. Of course, there is a problem with inflation, but since when did something like that ever matter when there was a ‘crisis’?
Below is the same graph as above, but updated through the beginning of November '08 (no, the chart is not blank, look at the blue spike at the far right - that is the "bailouts" alone and do not even include "Porkulous"):
Yeah, the article is loaded with errors, and that’s one.
The top graph is the BORROW graph, the lower one is not the same one...it’s EXCRESNS. You can confirm by comparing the little bumps that show in the shaded areas just after 1990 and 2000 on the bottom graph and see that they don’t match the upper one.
Yes, yes, and yes.
And I’m a teacher. Vouchers would be fabulous for those of us with high standards willing to work hard. Vouchers would also sweep away the dead wood - including incompetent teachers, snotty and rude students, and unaware and uncaring parents. Not to mention the union which supposedly represents me.
I can only hope your predictions will be the outcome of the coming crash... which the media will label “the Bush Depression” or some such b***sh**, at least for a while.
If you go to http://www.dagnyd.net/bubble.htm you will find that there is a corrected graph. It looks very much like the old graph, but it is BORROW, not EXCRESNS.
They can print more money, but they can’t make it have value.
Inflating the currency only buys them a little time before they have worthless paper.
They have a huge debt.
They can’t borrow much of it any more.
They can’t get much more by raising taxes.
They can inflate but then dollars become worthless.
Therefore they must go broke.
They can’t realize their dreams of government largesse and gluttony.
The bubble pops.
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