Sometimes admitting the truth is just too painful.
The current debt dance in Washington reminds me very much of the housing bubble. Back in 2003/2004 I became aware of the impending disaster heading toward us. But for years the housing “experts” denied that there was anything wrong. Up until the bitter end these people clung to the highly leveraged dream they had constructed over the prior decade. It couldn’t be coming to an end. It just couldn’t! If we all say that housing is healthy it is, right? It’s all animal spirits. Let’s keep those spirits up at all cost!
Very similar to what we see now in Washington.
Now, a political class clings to power as the economic tide continues to go out, but they have no sense of perspective. They are immersed in Washington-think, it’s all many of them have ever known or ever want to know. We aren’t out of money so long as we can keep printing it! See there’s no depression! Ha ha, the peasants won’t come for us with pitchforks so long as we keep throwing them bread. We owe this debt to ourselves anyway! Must – keep – bond rating – up. Must – print. Must – lie. Must – keep – big government – dream – going, at – all – costs!