Sunday, November 22, 2009

Let the People Off the Hook

I read that states are forced each year to reset unemployment taxes on business, and since unemployment funds are exhausted, these taxes in some cases will go up 10 fold. So business will now lay off even more or cut wages.

From every angle this thing is looked at, it's a Death Spiral.

Death Spirals can be halted in their tracks, but it requires the one thing that Modern Day Financial and Political Nobility will not allow to happen: Let the people off the hook.

Trillions in credit card balances, mortgage and refinance debt, consumer debt of all kinds must disappear. And as a nation, we must settle with China now for whatever terms we can get.

If the Nobility would let the people off the hook, we can clear the books and move on. But the Financial and Political Nobility are A1 sons of bitches, who have gotten fat from decades of Serfdom, and they refuse, stubbornly refuse to let the people off the hook, afraid their guts may shrink a bit.

And so we will sink.