So genius, how did we pay for WWII? We printed money then as well. It's just economic growth after the war knocked it out. Look at what happened when Clinton left office. The annual budget was in surplus and we would have been able to pay off our debt. But we did not account for 9/11 and the two wars that resulted as well as small recession.
It's also wise to note that we bailed out the S&L's in the 80's and it was the same % of GDP as the current bank bail out.
If you think you know enough about economics to predict what's going to happen 10 years from now, you will need to submit the results of your last random drug test. Did you predict the housing bubble? Did you predict the effect that the PC had on massively increasing productivity during the 90's that drove economic growth during that period?
Put 5 economists in a room and you get 7 opinions. Reminds of a scene from the West Wing a few years ago:
Chief of Staff: Ok, where are we on the economy? Where will the DOW be in a year?
Economist One: Bad, down a 1000.
Economist Two: Great, up a 1000.
Chief of Staff: In a year one of you is going to look really silly.
First off, I never said or suggested I was a genius...I don't claim to be. Secondly, I never said I have or had predicted anything regarding the economic mess. I merely stated/posted some economic facts regarding spending and deficit accounts. I said, "God only knows how this story will end." Last I checked, I wasn't god.
What I do know, and what I do understand...is how the Federal Reserve(non-government agency/private bank) is a major culprit behind this current economic mess, and others in the past. We don't have any checks/balances over them, they don't have any accountability, and they continue to manipulate our currency and the money supply. The only control we have is by our president picking the Chairman. But, that list of candidates is picked by the Federal Reserve itself, and we are simply drawing a straw out of a hat at that point. Regarding further details and the nitty gritty of all this lunacy, I have neither the time or patience to post on a Pharmacy Forum how it all boils down.
I highly recommend reading the book; The creature from Jekyll Island and/or watching the documentary; America Freedom to Fascism. Both are very enlighting and expose the Fed for what they really are.
On a side note, we paid for a huge chunk of WW2 by implementing two large tax increases(1940, 1941). The numbers of taxpayers also increased from 4 million in 1940 to 45 million in 1945 due to the revamping of income tax laws by FDR. The amount of money simply being printed still had a gold standard behind it, therefore limiting the cynical nature of inflation. That gold standard was done for in 1971, and in 2005 the Federal Reserve stopped publishing the data for the M3(money supply/inflation numbers). The ability to print money like water is a much greater threat now, than it has ever been. If the rest of the world starts dropping the dollar as a reserve currency and trade currency, then hyperinflation will kick in and all bets are off. Likely hood of that happening is probably slim though.
I agree, any white house economist would have no idea where the economy is at or where it is going. That's because they don't know how the Federal Reserve is operating, or how it will operate. Neither do we, neither do our congressmen, and neither does our president. Not because everyone is a bunch of bumbling idiots, but because the Fed goes out of their way to mask their operations.
In the end, it doesn't matter what I think or what you think. Neither one of us is heading to Washington anytime soon. And if we did, I doubt we could even make a dent in policy change. So, I will continue to work, finish school and plan for a fun and exciting career in Pharmacy. If the world ends tomorrow, so be it.