Counting the Cost

Will the current global economic crisis be solved by engaging in ever more of the same behavior that created it? In the case of the great government bailouts of major financial institutions and a host of private sector industries and concerns—does the end justify the means? The means in this case clearly violate every tenet of proper financial behavior. And what will the end look like?

Amid the current swirl of crises, immediate threats looming over our economic way of life are seen to be so great that suspension of every known economic absolute is justified.

Apparently the Western world, and the United States in particular has been living well beyond its means for a very long time. We’ve probably all been acquainted with someone who managed their personal affairs in such a fashion. The end of such behavior is axiomatic, and beyond dispute. Eventually, it becomes impossible to find anyone to lend “good money after bad,” and the perpetual borrower loses the acquisitions gained through unwise borrowing, not to mention his dignity.

Do none of the rules apply here in the 21st Century “postmodern” USA? Can the U.S. Government continue to conjure untold sums out of thin air without consequence? We’re told that the amounts “requisitioned” to this point are just the beginning. There will be other sectors vital to the economy that will require emergency infusions as we go forward. Some being bailed out, having failed to restructure or reform practices that created their predicaments in the first place, are expected to burn through their “rescue packages” and present the nation with the same dilemma again within a year or less.

Will the Government continue acquiring “ownership stakes” in the private sector as future infusions are needed? Is this the beginning of the end of our capitalist system?

It seems that most respected analysts, including some of the world’s wealthiest billionaires agree that the “bailout” moves underway are absolutely necessary to prevent the nation, maybe the world, from falling into a full blown depression. Some are said to believe (off the record) that’s where this thing is headed, and that it’s only a matter of time. But on the record, when panels of financial gurus are assembled to explain what is being done and how it will turn out, no one seems to be able to make sense of the situation. Does it not ultimately accrue to massive debt for us all? And is massive debt not something akin to enslavement, or has the government become so powerful that it can suspend the very nature of economic fundamentals?

It appears as though the concept of “limited government” as espoused by our founders is no longer applicable. Never mind so called “free market solutions.” They are not proposed, and besides, the emergencies that have everyone in the highest offices in the land so frightened, have required immediate intervention. They claim there is no time to consider any potential solution other than massive infusions of government cash.

Meanwhile, we still see and hear what must be expensive advertising from companies offering ways to reduce, consolidate, or settle your credit card debts for “pennies on the dollar.” Does default no longer carry any stigma?

It seems that all the conventional wisdom regarding borrowing, lending, “counting the cost,” living within means, all of it is out the window when it comes to the audacious power wielded by the arrogant politicians who’ve essentially bought their positions from their constituents, with tax dollars. We’ll just have to wait and see how it all turns out, because nobody is able or (more likely) willing to tell us.

A familiar Proverb advises, “A good man leaves an inheritance to his children’s children.” In light of the actions being decreed in high places, what will be the inheritance of our children’s children? It’s looking more and more likely to be nothing like the world we grew up in. And that goes well beyond economics!
 


Mark Armstrong
 

Breaking News Stories
Go here for the latest news stories on this subject. –news stories added 28 Nov 2008
 
Further reading:
Our Commentary
Change Coming to America –by Jim Josephsen
Economic Meltdown - Averted or Just Delayed? –by Mark Armstrong
Economic Collapse – Planned Disaster  –by Jim Josephsen
The Bills Are Now Due –by Jim Josephsen

Global Financial Meltdown...Now Near?  by Garner Ted Armstrong
Will OPEC Bankrupt The US?   by Garner Ted Armstrong 
Is A GLOBAL ECONOMIC MELTDOWN UNDERWAY?  by Garner Ted Armstrong
 
21st Century Watch
Is a Global Crash Just Ahead?  by Garner Ted Armstrong Volume 1, Number 7
Will the Dollar Be Replaced as the World Currency? 
by Garner Ted Armstrong  Volume 2, Number 1
America's Economic Woes by Jim Josephsen
 Volume 11, Number 1
 
Quote by Garner Ted Armstrong:
"For decades, I have warned that a global economic collapse would precede the toppling of moderate governments, the emergence of despots and dictators."
Is A GLOBAL ECONOMIC MELTDOWN UNDERWAY?

"For decades, I have warned millions of Americans and people around the world that the beginning of the prophesied Great Tribulation (Matthew 24:21,22) would most likely be caused by a global economic collapse! Impoverished masses in countries all over the world will overthrow governments. “Strong men” dictators will emerge. Martial law will be declared. Civil rights will be suspended.

"Nations will once again begin to prey on neighboring nations, or attempt nuclear blackmail of nations far away in order to alleviate massive poverty, squalor and disease, and to bring restive populations back under control."  –Global Financial Meltdown...Now Near?
 
Resources
Free Market Financial Crisis Subprime Mortgage Crisis Global financial crisis of 2008
Financial crisis of 2007-2008 Liquidity crisis of September 2008 1998 Russian financial crisis 1997 Asian Financial Crisis
Flight-to-Liquidity Bailout List of recessions in the United States  
       
List of Largest US Government Expenditures
The bailout has cost more than all of these big budget government expenditures – combined:

• Marshall Plan: Cost: $12.7 billion, Inflation Adjusted Cost: $115.3 billion
• Louisiana Purchase: Cost: $15 million, Inflation Adjusted Cost: $217 billion
• Race to the Moon: Cost: $36.4 billion, Inflation Adjusted Cost: $237 billion
• S&L Crisis: Cost: $153 billion, Inflation Adjusted Cost: $256 billion
• Korean War: Cost: $54 billion, Inflation Adjusted Cost: $454 billion
• The New Deal: Cost: $32 billion (Est), Inflation Adjusted Cost: $500 billion (Est)
• Invasion of Iraq: Cost: $551b, Inflation Adjusted Cost: $597 billion
• Vietnam War: Cost: $111 billion, Inflation Adjusted Cost: $698 billion
• NASA: Cost: $416.7 billion, Inflation Adjusted Cost: $851.2 billion

TOTAL: $3.92 trillion  Source
 

Photos:
Left: Economic meltdown icon
Right: Economic meltdown icon