Time Bomb Explodes, Nobody Notices

A great short essay by economist Dr. Robert Higgs entitled Ticking Time Bomb Explodes, Public Is Shocked.

Unfortunately, our great presidential dialogue leading up to the election in less than two months is all about vague references to "change," discussions about lipstick, accusations of not knowing how to send e-mails, and other inanities. Choosing a president is today not much different than selecting the next American Idol - as both sides in the election are being marketed as a cult of personality based on the ability to create a media "buzz."

Meanwhile, back in the real world outside the beltway and the media - has anyone bothered to notice the failure of Fannie Mae and Freddie Mac? Does this sound kind of important? Is anyone talking about the federal reserve's continued devaluation of the dollar? Doesn't this sound like something that we might want to be talking about at election time?

We are facing a complete financial meltdown in this country simply based on the laws of mathematics and economics - but talk radio, TV pundits, and political journalists are fixated on nonsense - and the politicians themselves are more interested in polls and talking points than addressing these dire matters.

A couple quotes from Higgs:

"The failure of Fannie Mae and Freddie Mac, setting in motion the biggest government bailout/takeover in U.S. history, brings a grim sense of fulfillment to competent economists. After all, what did people expect, that water would flow uphill forever? ... The trouble is, however, that now, even more than then, the American people have little interest in liberty. Instead, they want the impossible: home ownership for those who cannot afford homes, credit for those who are not creditworthy, old-age pensions for those who have not saved, health care for those who make no attempt to keep themselves healthy, and college educations for those who lack the wit to finish high school. Moreover, they want it now, and they want somebody else to pay for it.

If you think that Fannie and Freddie’s bust is a big deal, just wait until Medicare comes crashing down. Then, the wailing and gnashing of teeth will be truly unbearable. As that day rapidly approaches, however, you’ll notice that the politicians are doing utterly nothing to forestall it."