What is this Election About?

I don’t think people who have not studied economics can grasp the magnitude of what’s been done to us, and how swiftly all our modern world-wide extended order can grind to a halt.

I hope everyone understands that the money, including all future earnings of your children and grandchildren, has been spent, and that we are SIXTEEN TRILLION DOLLARS in the hole. Borrowed money represents a promise against future labor.

That means that no labor performed for the next several decades will have any value. The result is the same whether the debt is paid or repudiated: a collapse of the credit market and of the holding value of the dollars.

It will happen as suddenly as a run on the bank. Foreign lenders who are currently bankrolling most of our National Debt will suddenly realize that they are unlikely to get repaid. And so they will sell treasury bonds and other loan instruments as fast as they can; and once one debtor sees the other selling, the price will drop precipitously, causing more to sell quickly and below cost.

Do you remember what caused the recession we are in? Since the newspapers bent heaven and earth to hide the causes, perhaps even well informed people do not know, but ask any sober (i.e. non-Keynesian) economist.

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Originally published at John C. Wright's Journal. Please leave any comments there.