The definition of insanity is, doing the same thing over and over again and expecting different results. Albert Einstein
I have been mulling this opinion over for the last few months and think it is valid, simple and has a charming sort of 3rd form economics (14 yr old thinking for my foreign readers) approach to things.
Here goes.
Just what do Barrack Obama, Gordon Brown, Kevin Rudd and a whole host of other world leaders know that we don't?
I would argue, when it comes to the large sums of taxpayer dollars these imbeciles are doling out quicker than a rotund Wall Street banker in quicksand, that our leaders know very little indeed.
The answer to the Albert Einstein quandary is quite simple really and not as complex as those who dare to represent us might make out.
Why would one hand out very large sums of borrowed money to citizens to spend and "stimulate" economies when it is that very thing that got the globe and especially North America, in the proverbial in the first instance!
We must do the very opposite to this.
While not stopping spending entirely in the German or Japanese extreme, the answer to our current problems is to save.
Well duh !
Sufficient savings allows us to actually give us a real sense of wealth, rather than the plastic fantastic kind that contributed to this mess. That has to be paid back at some time and that time I would argue is now.
It is the same for individuals, business, large corporations and countries.
This is where reality and fantasy go in polar opposite directions and will probably have serious consequences somewhere else in the future.
What happens if you pile this much debt on top of debt to spend your way out of a problem caused by debt?
Well, eventually you have to pay that debt back.
So what Obama, Rudd, Brown et al are doing is postponing the inevitable and when that time comes the problem will be oh so more dire than it is currently.
Perhaps young Albert had something when he uttered those famous words that I posted above.
Here is another poignant ditty to end the lesson:
"Any intelligent fool can make things bigger and more complex... It takes a touch of genius - and a lot of courage to move in the opposite direction". Albert Einstein
Sorry for the complexity of my simplicity but it had to be said.
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From Fishpond.co.nz - Every Bastard Says No: The 42 Below Story
c Share Investor 2009
