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Milton J. Madison - An American Refugee Now Living in China, Where Liberty is Ascending

Federalism, Free Markets and the Liberty To Let One's Mind Wander. I Am Very Worried About the Fate of Liberty in the USA, Where Government is Taking people's Lives ____________________________________________________________________________________________ "Extremism in defense of liberty is no vice. Tolerance in the face of tyranny is no virtue." -Barry Goldwater-

Tuesday, December 09, 2008

Back to the Good Ol' Days....



With T-bill rates, the interest rate that the government can borrow short-term money falling to near zero, we are returning to the old days of the 1940's and 50's when these kinds of rates were normal. Interesting that also, in those days as well as these, that inflation was low and economy focused on savings and investment and not on short-term speculation and financial engineering. We may be reentering a golden era where people actually try to build real businesses that make sense instead of creating short-term investment vehicles to make oodles of money in very short-term periods of time.

The biggest advantage now, over those days, is that the US Government has painted itself into a corner where they have failed or are poised to fail to deliver on the socialist programs of the 1930's and 1960's that are complicit in the current crisis and will be the basis for the next one. Just remember, the bill for these programs starts coming due in a bout 5 years as decades of profligate spending on seniors will no longer be affordable to the baby boomers that paid into these programs and will be unable to collect. I will just laugh at these 'flower power' people that thought that they were getting something from a government that should never have been in the business of retirement funding nor providing health-care to start with. Folks that think that they will get anything near what they were promised better start saving lots of money now since if they don't, no one else will do it for them.

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