16 February, 2011 – The Church Doctrine

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Why Do People Believe in the Asset Bubble Fairy?

2011 Mike Church

Hi folks its Mike Church with todays Church Doctrine

Today I was confronted by an angry caller who insisted that the United States current debt and deficit problems were not problems at all. Why, they are blessings! After all we did con the Chinese into financing our debt and its not like we havent had deficits in the past. The caller insisted that our current situation will be melted away by that magical debt slayer known as inflation.

Inflation, it was then explained to me is our friend.

Our economy will then be grown by Ben Bernyankme and pals with another of those magical cures to our malaise: the asset bubble fairy.

Lets tackle these statements of utter nitwittery one at a time. To claim that is a good thing for foreign countries to buy our government debt  is to misunderstand why debt is bad.

That same purchase could have been directed toward investment in an American company which would then seek to elevate the value of the investment through manufacturing and the means of productivity. This process creates wealth whereas  governments running up and then selling debt consumes wealth. Which one would you choose?

Then theres the love affair with inflation. If the caller is happy earning $100 today that the Federal Reserve will turn into $96 next year then he is free to waste his money

like that but I dont want my government wasting mine. This is called currency devaluation and anyone who promotes it must be either a citizen of Libtardia or a relative of Alan Greenspan.

Finally theres the asset bubble creation which is caused by the Fed keeping interest rates too low for too long. if you like stock and housing market crashes like 2000 and 2008 then choose that method just as you are free to choose a bankruptcy attorney, which you will need at the end of each bubble

TheKingDude

Host of the Mike Church Show on The Veritas Radio Network's CRUSADE Channel & Founder of the Veritas Radio Network. Formerly, of Sirius/XM's Patriot channel 125. The show began in March of 2003 exclusively on Sirius and remains "the longest running radio talk show in satellite radio history".

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