The New, Upcoming Financial Crisis

Leave it to politicians to make a real hash out of ordinary, simple problems. What was a simple sub-prime problem, that normally would inevitably lead to a minor recession, has become, in reality, a near Depression, comparable in many ways to that of the 1930’s.

Students of the Great Depression now see how Franklin D. Roosevelt overreacted with over-spending. Then he over-taxed business and created a Depression psychology that prevailed unabated. until the Second World War acted as a stimulus.

The same is occurring today. But the extraordinary spending is taking its toll as it inevitably must. In the form of business-stifling taxes, and even more so, in eventual inflation.

But inflation is a slow starter. That’s because poor economies hold back prices for awhile. At the sign of a full recovery, however, prices will start to jump.

Unfortunately, the Main Honchos in government, responsible for the new, real financial crisis-to- come, may be out of office by then. And the blame will be placed on the shoulders of administrations who will be around to attempt to clean up as best they can.

Don’t worry: Stupid voters and biased historians will clear the true culprits of any responsibility.