Fiscal Picture

"The Obama administration’s insistence on fiscal rectitude is dictated not by financial necessity but by political considerations. The US is not in the position of Europe’s heavily indebted countries, which must pay hefty premiums over the price at which Germany can borrow. Interest rates on US government bonds have been falling and are near record lows, which means that financial markets anticipate deflation, not inflation." -George Soros

The snippet above from an article by George Soros highlights some key elements that progressives are totally missing the ball on, and causing them to talk in circles. The failure in George Soros' understanding falls into the last sentence. "Interest rates on US government bonds have been falling and are near record lows, which means that financial markets anticipate deflation, not inflation."

Sales of gold are one indicator, the sentiment of the American public is another; most Americans are looking down the road, not at their front porch. When governments print money on huge scales, and take on debt as they are doing now, inflation has to be on the way. Financial markets may be anticipating deflation, but everyone else in the country (namely those who do not make their living in financial markets) see an inflated and de-valued dollar.

The dirty little secret here is that when you hear "interest rates are falling and markets are anticipating deflation"; this means that the Federal Reserve is pushing interest rates down because THEY want people to borrow more money and take on more of the debt!

The market has nothing to do with it at this point. The market is pushing against the insane policies of public stimulus, increased debt load, and attempts at distorting the market by the Federal Reserve and Treasury Department.

Everything progressives policymakers are doing is an unsustainable attempt to make tomorrow look like the Garden of Eden, while our descendants will be forced to shoulder increased debt and reliance on governments.

The crazy part is that most of these people are pushing for environmental sustainability, while they push a totally unsustainable economic policy, the latter of which nothing is possible. If the government forces our money away from us, or makes our dollars worth nothing, they are setting us back many decades.

We keep hearing from the White House that tough decisions need to be made, all while the tough decisions of cutting back on stimulus and entitlement programs is being avoided.