Continuing off the cliff -- background updates

US government debt is a safe haven the way Pearl Harbor was a safe haven in 1941.” -- Niall Ferguson

Excerpts below are from this article.

"The Austrian School’s Seven Commandments:

(The Austrian free-market economists use common sense principles.)

· You cannot spend your way out of a recession.

· You cannot regulate the economy into oblivion and expect it to function.

· You cannot tax people and businesses to the point of near slavery and expect them to keep producing.

· You cannot create an abundance of money out of thin air without making all that paper worthless.

· The government cannot make up for rising unemployment by just hiring all the out of work people to be bureaucrats or send them unemployment checks forever.

· You cannot live beyond your means indefinitely.

· The economy must actually produce something others are willing to buy.

...The social welfare states are falling to their doom as intensifying debt spirals suck the wind out of capital markets and misallocate capital from wealth/income creation and production to government-directed consumption (support for bloated state and municipal governments and green energy, aka crony capitalism and higher taxes, etc) investment and entitlements. This is misallocation of capital on a massive scale, barricades to future prosperity and anchors of debt on all levels of society.

Driving more nails into the economic coffins in which economic and income growth have been placed. This is but a small fire drill in preparation for the coming total financial system destruction which looms. Next up: Italy, Spain, Portugal and every developed G7 nation (UK, US, France, Switzerland, Germany, everyone in Europe); all socialist welfare-state economies in everything but name as they and the mainstream press try and pin the tail of the current crisis on capitalism, which has been systematically destroyed by socialist progressives, private and public sector unions, crony capitalists and banksters...

Everyone is crowing about GROWTH in the developed-world economies, but if you SUBTRACT government spending (which they are calling growth), the G7 Economies are STILL COLLAPSING at rates of 5 to 10% per year. "

Fantastic article about the risks of US Treasury bonds, which is the big time bomb I keep warning about.