“By combating our crisis of private debt with an extraordinary expansion of public debt, we inevitably are going to reduce the resources available for national security in the years ahead,” Ferguson said.
Where would we be without such geniuses to inform us of what’s been perfectly blatantly obvious to all but the most idiotic of politicians, corporate CEOs and other nay sayers like the IMF for over 6 months already? Some even saw this coming long before that.
We live in a world where those in political and economic power have their own fantasy realm of self dillusions, and we’re expected to take them at their word that everything’s in hand and it’s all going to be better, like an infant who’s just burned him or herself on the fireplace glass after checking out their reflection on it, and a little kiss from mommy is all that’s needed to make it better.
Maybe we should have a repeat of history, say, the french revolution? Athough we can’t just publicly use the guillotine to rid ourselves of them, come election time, it’s past time to put plenty of these people out to pasture. and I don’t just mean switch from one old cow to the other (RE: Liberals or Conservatives). We need new blood in Washington and Ottawa; new ideas, new approaches.
Historian warns of sudden collapse of American ‘empire’
According to Harvard professor and prolific author Niall Ferguson [who] opened the 2010 Aspen Ideas Festival Monday with a stark warning about the increasing prospect of the American “empire” suddenly collapsing due to the country’s rising debt level.
“I think this is a problem that is going to go live really soon,” Ferguson said. “In that sense, I mean within the next two years. Because the whole thing, fiscally and other ways, is very near the edge of chaos. And we’ve seen already in Greece what happens when the bond market loses faith in your fiscal policy.”
Ferguson said empires — such as the former Soviet Union and the Roman empire — can collapse quite quickly and the tipping point is often when the cost of servicing an empire’s debt is larger than the cost of its defense budget.
“That has not been the case I think at any point in U.S. history,” Ferguson said. “It will be the case in the next five years.”