Goodbye to the capital of capital?

So, the home of capital is big time broke. Not exactly what the founding fathers had in mind for Old Glory, is it?

But, as those who have read this blog for long enough will know, the parlous state of American finances and American politics comes as no surprise to me. And in truth it is nothing new. For the past twenty years the USA has simply not been paying her way. Quite the reverse - indeed she has long been in the hopeless habit of borrowing more money to pay the interest on a Mount Everest of previous borrowings. If you like capitalism you will hate this -and by the way you’re probably (if you are American) a Republican. On the other hand, should you perchance be an American Democrat you won’t care about from where next month’s State outgoings originate: mainly your ‘friends’ in China by the way, should you not already know it.

(There are more ways to wage and to win a modern world war than with rifles and missiles.)

Surprise, surprise, the exact same situation applies, if only in microcosm, to Great Britain. Our beloved Keynsian theory has been buried in all but name as the borrowing goes on. Not just ‘goes on’ but is being actively encouraged by a government that clearly believes in bits of sticking plaster to heal the great gaping wounds in its public purse.

Greed really is good? Borrowing to finance over-consumption really is a good idea?

Mister Micawber wouldn’t think so. Nor do I. And nor will any of us, on either side of the Atlantic, when the first government pension fails to pay us out our so-called 'dues'.

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