The truth is all our economic growth has been purchased for decades with debt funded stimulus. "It’s the economy stupid" was the conventional wisdom that inspired constant stimulus. But borrowing moves future consumption forward to the present. Eventually you get to the future. All the schools of economics agree that borrowing (at least from outside the economy) and spending stimulates an economy. That should frighten all of us, because when the borrowing must stop reality hits for the first time in decades. The truth is that there is more than ample evidence that the "service based economy" is going out of service. That "the consumer based economy" is getting consumed. That the "FIRE economy" (Finance, Insurance, and Real Estate) is burning itself out. The bottom line is that central planning destroys an economy, and government manipulation always miss-allocates limited resources, government is inherently inefficient, and so far we have just felt the wind in front of the economic storm.

Federal, state and local debt hits post-WWII levels:  www.washingtonpost.com/wp-dyn/content/article/2011…05923

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