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The Causes Of The Mess We’re In

What got us here?

What policies were implemented—decisions made—actions taken—which would set us on such a path to oblivion? Because that is our ultimate destination—oblivion. It’s coming to the American economy—and American society—as surely as if it had been FedExed last night. So if we’re going to hell, might as well figure out how we got there.

Some people claim it was the very invention of the Federal Reserve back in the early XX century that set us on the path to ruin. Others claim it was the Hamiltonian desire for a central bank. If we play the causal game at these focus lengths, then we might as well go back to Adam and Eve—they’re the reason for all our macroeconomic misery!

Patently absurd.

But if we get serious and look at the policies, decisions and actions carried out in our own lifetimes, then I’d have to say that there were two things that set us on the road that we’re on:

• One, the failure of Congress to deliver a balanced budget since 1975, and
• Two, the subsidy the Federal Reserve gave both the U.S. economy and the Federal government by way of its artificially low interest rates, starting in 1987.”

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