Wednesday, October 1, 2008

Unintended Consequences

Hummm... World markets are tanking because the dollar becomes stronger during our current financial crisis. Interesting.

If the U.S. goes in to a deep recession, which we deserve, and pulls the rest of the world with us, will there be violence?

I can absolutely see that if the US goes in to a depression (a recession that lasts years) we will pull the world with us. There will be violence around the world and at home if that happens. But what about a downturn for a few quarters? Will other countries take arms up against our most vulnerable allies, like Georgia?

Hummm... I may have to rethink my "let them die" position. However, without massive spending cuts, I just don't see how the Government can pay for the huge bailout. We either tax more, which will kill an economic recovery, or we print more money, which will devalue the dollar, and if the dollar is worth less, that automatically increases prices, which drives the inflation percentage up... which will kill any economic recovery.

I am starting to warm up to the hard line Republican idea of selling insurance to banks, so that the loans that actually fail are the ones that we the people will bail out. At least the government will not be holding the paper, as the Democrats want.


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