Monday, November 24, 2008

The economy for dummies (like me)

Here’s a 47-minute video explaining banking, wealth, and the economic system of the world, irrespective of the forms of government.

It explains why we are awash with credit card offers…no one is particularly concerned when our savings rate dips below zero…a TRILLION dollars of revolving debt is no big deal…and banks are courting illegal aliens to participate in our economy with home loans and credit cards.

It helps us explain how we could “give” $125 BILLION of government money to bail out Savings and Loans in the 1980s…and why the ante is richer today…and why economists aren’t all jumping off bridges…

And maybe it helps us understand how the Clinton Administration was able to turn our federal deficit into a surplus so quickly and how quickly it disappeared. We blamed it on the dot-com boom and bust, but that isn’t exactly the entire story.

It helps explain why manufacturing isn’t that big a deal to politicians…and how factories and inventories aren’t able to save the auto industry.

Maybe all this nonsense of NAFTA, CAFTA, and the EU come into sharper focus.

Ponzi schemes are against the law…unless they are big enough to ruin the economy if broken up.

(A mugshot of Charles Ponzi)

There is a test after the video. We are living it.


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