Friday, April 8, 2011


All the political talk today is about a government shutdown. Here are a couple videos for your perusal. The first one is from over a month ago. The second one was uploaded today.

I respect both of these guys (Andrew Napolitano and Rand Paul). The current situation in D.C. is a game of chicken. If the Republicans cave in and don't demand an end to increased borrowing and spending, America loses. In other words, you will see hyperinflation. As the judge said in the first video, the final decision about the government shutdown will not be made by Congress; it'll be made by the Obama administration.

A shutdown is not ideal, but it is much better than yet another increase in borrowing and spending. The United States is in $14.25 trillion of debt. We won't default on it. And there is only so much taxation that Americans will put up with. That leaves us with a choice between serious government budget cuts or monetizing the debt (hyperinflation). If the Republicans show a lack of resolve here, you will see consumer prices go way up, but wages and salaries won't. Bank on it.

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