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We Never Learn! (I bet I used this title before and I bet I will use it again!)

February 18, 2014

I don’t want to shock anyone with two posts in one day, but I couldn’t let this one go by without mentioning it. This link takes you to a financial story about how Americans are taking on record loads of debt. I guess we will find out if my theory or the Fed’s theory is correct. The Feds called our 2008 financial crisis a “credit crisis,” while I say it was just the opposite, that it was a debt crisis. So our monetary policy has finally encouraged the American consumer to take on more debt to buy more cheap Chinese-manufactured crap. And I guess this can occur because we can accumulate debt into infinity; there will never be a day of reckoning… borrow and spend and do not worry how you will ultimately pay for it, or save for your retirement, or save for that unexpected emergency, or withstand the next financial disaster, or save for the kids’ college, or…

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