Let's Party Like it's 1929!!!!

I have a very funny friend who's Facebook status said it all on New Year's Eve. It simply said "(The Person) is partying like it is 1929!!" While it is funny on the surface, it is actually very sad. The guy is one smart cookie, so I think he saw the humor and the sadness in his posting. I included the little graphic to the right to explain what 1930 should feel like.

We are on a perfect course to repeat history once again.

We have a populist president coming into office who plans to put infrastructure projects in place to stem the downward spiral of the economy. (I don't think anyone has the illusion that anything is going to spur major growth anymore.) Besides, if we had major growth we would be slaughtered by inflation from all the spending we have done in the last 3 months. (Remember that the Federal Reserve was spending $177,500 per SECOND for the entire month of November.) The problem I see with spending on work projects is that they are not long term. They do not build the foundations for a growing economy, they just stave off its free-fall. The only way to create stability to grow out of is with long term projects. Just like in the last populist president's time... the long term growth strategy will come from the war machine.

I know the country is war weary right now, but, they will quickly get over it. Remember, this is the same country that thinks that just by changing the head of the executive branch everything will get better. While all the time ignoring the fact that we still have the same people enacting laws in place that have been there for a very long time. World War I was was a very costly and very gruesome war. Iraq and Afghanistan come nowhere close in terms of the barbaric nature and the casualty numbers. So, it will take even less time for this 15 second attention span populous to forget all about any of that. And besides, we have the WPA and the CCC to distract us till Russia and company bang the drum long enough. Russia needs a war very badly, their stock market was closed for long periods in the second half of '08 and dropped 80% between June and December.

So, enjoy the speech today. Because we are in for a long dark period in this country and most likely all of the free world. (With the exception fo China, I think they can weather this pretty well.) I hate war. I hate it so much. But, as we watch the country nationalize the banks and now turn their eyes to the manfuacturing sector... all I see are plowshares being banged into swords.

Until then, lets all think. And think real hard. There has to be some ground breaking idea we can go for that will stimulate truly sustainable growth for the US and just as importantly, for its allies AND enemies. We need something and we need it in the next couple years!