Monday, August 10, 2009

Jim Kunstler: Get ready for a much lower standard of living

The number problems we face are now hopeless. America will never be able to cover its current outstanding debt. We're effectively finished at all three levels: household, corporate, and government. Who, for instance, can really comprehend what to do about the number problems infesting Fannie Mae and the mortgages associated with her? There's really only one way out of this predicament: to get ready for a much lower standard of living and much different daily living arrangements. We can't wrap our minds around this, so the exercise du jour is to play games with numbers to persuade ourselves that we don't have to face reality. We're entertaining ourselves with shell games, musical chairs, Chinese fire drills, Ponzi schemes, and Polish blanket tricks (where, to make your blanket longer, you cut twelve inches off the top and sew it onto the bottom).
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1 comment:

Andy said...

It's my belief, and a belief it is, that this recession isn't a business cycle correction, its an adjustment to the result of policies set in place since Reagan. The erosion of protection for workers from excessive work, the competition we now have with persons in far away lands who do not benefit from the same protections we do. Not to mention the growing cynicism much of the US has for eggheads and academics or basic research. We've been earning less but spending up to the expectation with credit, and now, its come to a head. Welcome to reality USA.