by Karl Denninger
... that does not involve serious pain.
Go ahead folks - tell me how we can simply ignore this.
How we can pretend that the outstanding debt does not have to come back down to reasonable levels.
That these levels are "reasonable" - and that these rates of growth are "reasonable."
This is the "magic of compounding" writ large - and in a fashion that is going to inflict severe pain on our population - and the longer we wait to deal with it, the worse it will be.
Bernanke, who was at The Fed during Greenspan's time there, should have used his "education" - his claimed knowledge of economics - to make a lot of noise about this and demand that interest rates NOT be lowered to further encourage more debt-based consumption.
He did exactly the opposite.
As this decade wore on he should have sounded the alarm on our debt binge in all sectors, especially in the financial and consumer sectors where the growth in indebtedness has been the highest.
He did exactly the opposite.
Since this crisis began, in fact, every single government official who has spoken on the matter has emphasized even more lending, that is, cranking the amount of debt outstanding even higher, and The Federal Government has made good on their intent by, in the last year, spending more than $1.7 trillion dollars they did not have - that is, they borrowed even more.
There Is No Way Out Of This Box....
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