Letterman Taught Lesson in Obamonomics

This blog's favorite object of derision, the feckless David Letterman, was surprised to find himself on the receiving end of some very useful economic information. It came from an unlikely source when his guest, NBC's Brian Williams came on and was asked to comment on yesterdays wild market swing, where the market lost a trillion dollars worth of value over a matter of a few minutes, later regaining much of its value later in the day. On Dave's invitation, Mr. Williams began to hold forth on the major ills that plague our current economic situation, namely America’s unsustainable entitlement programs and bloated public employee pensions, which promise to put us on the path to the sort of fiscal crisis we are seeing in Greece, Spain and Portugal today. A stock market drop of one thousand points in fifteen minutes is a scary thing, and Mr. Williams commented that watching it gave him a sick feeling in the pit of his stomach, a sense that the world was falling apart right underneath his feet, much as he felt when he watched three thousand people killed in the jihadist attacks of 9/11.

Williams noted the reports that attributed the afternoon free-fall to a trader error and programed trading, but correctly added that these still were a harbinger of market volatility. Williams noted that traders were influenced by violent rioting over in Greece over that country’s debt crisis, and that similar crises may occur in Spain and Portugal, spreading through the rest of Europe. And an economic crisis in Europe would lead to an economic crisis in America.

“the dirty little secret is: the world has no money and the emperor has no clothes.”

Let me spell that out for you Dave, in case the stage girls were a little distracting tonight. We don't have any money. We've spent it all. We've spent tomorrows money as well. It's gone.

Now, where exactly does that leave us?

The government has to either stop spending increases, or attempt to increase the Federal coffers. Increasing Federal funds can be accomplished in a couple of different ways. The conservative approach is to decrease taxes on income and capital expenditures to stimulate the economy and encourage economic growth. Higher economic activity will translate to higher tax revenue being generated.

Sadly, though it has a uniformly successful track record, that method is never considered by knuckle-heads like Tim Geitner or Barrack Obama. No, the Obamonomics approach is to tax the hell out of everything under the sun. He also would like to spread it around a little, and he is thinking you're being stingy if you are not all good with that. His other ace is to simply print more money, and I got to admit, the Federal mint is the only entity that can potentially keep up with this clown. Unfortunately, the effort would ruin the country as inflation would be driven to 15 to 20 percent.

As Margaret Thatcher shrewdly once said “the problem with socialism is that eventually you run out of other people’s money.”

True enough, and the trouble is, with the Obamonomics spending spree and political slush funding, that very day is fast approaching.