DEBT BUBBLE IS READY TO BURST

In case you haven't noticed, one of the things the Bush administration does is lie a lot. We all know by now that Iraq was and is a lie. And good people die not in service to their country, but in service to that lie. But what most Americans don't understand is that the lies told about our economy may ultimately be even more painful.

Anyone with a pulse and a hint of respiration knows that the government's Consumer Price Index is a monthly lie. If you're one of those kinds of people who have to engage in such frivilous endeavors as eating, driving, heating your home, educating your children or seeking out healthcare --- in other words, anything you really need in this world --- then you know such neccessities have been going through the roof.. And yet miraculously the CPI indicates that inflation is very much under control.

Why do they lie about the CPI? Because to tell the truth about inflation would cause a catastrophic chain of events that would start off by spooking the bond market which in turn would crash the housing market which in turn would tank the stock market and the U.S. dollar which in turn would crush the economy. But far more sinister is the fact that the government has to pay a cost of living increase each year to anyone receiving Social Security. That increase is tied directly to the year-over-year CPI. Enough said about that. It's a plain old fashioned disgrace.

So how do they get away with it? Because politicians and journalists are, for the most part, deaf, dumb and blind about economics. And since journalists have become the public relations arm of the Federal Government, all the Bushies have to do is feed them the seed in the form of monthly reports on the economy,
and these investigative detective writers obediently regurgitate them on to the written page without ever questioning their veracity.

And so Americans are told that we are living through a "Goldilocks economy" when in truth we are on the precipice of an unprecedented debt bubble that will burst at any time.

08/19/2005