Fake Coup, One Way to Solve the US Debt

From The Onion:

A fake coup to solve our national debt consolidation problems??? Pretty funny. Or is it?

One Nation. Under Stress. In Debt

If you’re looking for a movie this summer, here is one that you may want to see: I.O.U.S.A “One Nation. Under Stress. In Debt.”  I’ve only seen the trailer, so I can’t say how the movie is, but it certainly looks very interesting:

Movie site: IOUSA

Don’t Forget: USA Was Built on Financial Discipline

David Brooks wrote a thought provoking column today on money and debt. I think he makes a great point about “The Great Seduction” of debt and the impact on todays society. He makes some interesting observations on how powerful a role financial discipline played as the United States became the wealthiest nation on earth:

The United States has been an affluent nation since its founding. But the country was, by an large, not corrupted by wealth. For centuries, it remained industrious, ambitious and frugal.

Over the past 30 years, much of that has been shredded. The social norms and institutions that encouraged frugality and spending what you earn have been undermined. The institutions that encourage debt and living for the moment have been strengthened. The country’s moral guardians are forever looking for decadence out of Hollywood and reality TV. But the most rampant decadence today is financial decadence, the trampling of decent norms about how to use and harness money.

I think the bubble economy we’ve seen the past few years bears this point out beautifully. To consider that the US economy has been through two huge bubbles since I graduated from college in 1997 is quite staggering. The first being the dot com bubble and the second is of course the housing (mortgage) one.

The explosion in personal consumer debt and the growing economic disparity cannot be good things for the long term health of the economy. I also think that the borrow and spend mentality that has overtaken the entire country starting from the President all the way down to teenagers applying for credit cards must be rectified at some point if this country to continue to be a wealthy nation. Otherwise it will go the way of Argentina in the late 1990s.

I found Brooks column very thoughtful and

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