That huge fed debt increase? They’ve already used 60 percent of it

By David McElroy · August 5, 2011

Early in my college years, I’d never had a credit card. I’d never had a full-time job and I’d also never needed credit. But I was walking through a Sears store at University Mall in Tuscaloosa one day when an attractive girl stopped me to talk. It turned out she was working for Sears, getting people to apply for credit cards.

The pitch was simple. There was some kind of gift — of marginal value, I’m sure — that she would give me if I’d just fill out the application. Plus, she said, she would make some money if I just applied. I explained to her that I wasn’t working and didn’t have any income, so I obviously wasn’t who they wanted. But she said it would help her, so I relented. I’d get a free gift — and how many college boys find it easy to say, “no,” to pretty college girls?

I forgot all about it, but one day before long I received a shiny new Sears credit card in the mail with my name on it. The credit limit was $350, if I remember correctly. What did I do? Did I tuck the card away to use in case I really needed something? Did I hold onto it to use a little here and there to build credit by paying the bill responsibly? No way. I went out that very moment and bought a VCR that I couldn’t afford, maxing out the card in the process.

I spent the next five years or so paying that VCR off, making the minimum payment most of the time and probably paying three times what it was worth.

Uncle Sam has had a credit card before, but he’s no more responsible than my 19-year-old self was. Just this week, Congress gave the Obama administration authority to borrow more money. On Tuesday, the feds went on a wild borrowing spree, pushing the national debt up by $239 billion — eating up 60 percent of the newly authorized borrowing.

I hope we get more out of it than a lousy, overpriced VCR, but I doubt it.

Politicians like to talk a lot about fiscal responsibility, but their actions say entirely different things. The truth is that politicians like to spend money. They like to spend other people’s money. Better yet, they like to spend money that they’ve borrowed and insist that other people pay back.

Anyone who believes that there’s any chance of stopping the runaway freight train of federal debt is living on Fantasy Island. Anyone who believes that any politician — of any party — can change things is just denying reality.

We’re heading quickly toward economic collapse. Thursday’s market plunge was a tiny tremor. Politicians and unelected bureaucrats will keep pumping up the economy by inflating the money supply and borrowing every nickel they can get their hands on, but it’s not going to be enough. Whether it’s this year or next year or five years from now, the bubble will burst. It’s going to be ugly when it happens.

Share on Social Networks

I’m seeing a lot of simplistic and dishonest explanations right now for the current rioting in France. Those on the populist far right claim it’s all about Muslim immigrants to France disrupting the culture. Their message is that this sort of thing is going to happen in the U.S. unless “we defend the border.” On the far left, socialists and their fellow travelers claim the riots are all about wealthy people in France not paying enough taxes, resulting in cuts to government services. The truth is far more complicated, but it’s rooted in the decline of population growth in Europe. There simply aren’t enough young workers paying into the tax system anymore, so cuts in social services were inevitable. There is genuine cultural tension as more and more people immigrate from other countries, but government cuts to education and other services are even more important to what’s happening. The situation is complicated, so don’t let dishonest people with U.S. political agendas tell you that it happens to support whatever they were already promoting for partisan reasons.

Here’s another reason to appreciate the cats in your life: New research involving 93 countries found that places with more cats per person also tended to have happier people. The researchers say the finding fits with previous evidence that living with pets can reduce loneliness and stress while providing companionship, emotional attachment and social support. The study doesn’t prove that cats cause greater happiness, but it certainly adds to the evidence that sharing your home — and your life — with a cat might be good for you.

The company that owns Facebook and Instagram is heavily promoting its new AI-based software assistant called Muse, but people who are using it as it was designed are incredibly foolish. An early adopter of the software discovered that a few days ago when he advertised an item for sale on Facebook Marketplace — and he inadvertently gave Muse full authority to act on his behalf. The software agreed to a lowball offer made by another Facebook user and then gave that man the home address of the man for whom he was an agent. The software told the buyer that the seller was home and waiting for him. When the buyer showed up and waited angrily, the would-be buyer left an angry review for the man. And this angry man had the seller’s home address. It was only well after that that the software reported what it had done and admitted it had made a mistake. I won’t be putting that much power into the hands of any software. I think anyone who agrees to such terms is a fool. And the software’s user agreement says you’re responsible for purchases the software makes in your name. Nope.

Meet my new girlfriend. Her name is Meg. And she’s my little sweetheart. A couple of months ago, a neighbor across the street told me about a new stray in the neighborhood that she and I were both soon feeding. The cat had been very skittish about contact and she had a lot of scabs and parasites in her fur, but a trip to the vet last week revealed that she was otherwise in good health. The vet estimates her to be 1 to 2 years old. I named her for Meg Murry, the 13-year-old protagonist of Madeleine L’Engle’s wonderful book, “A Wrinkle in Time.” (Please read the book. Don’t watch the horrible movie.) Since we lost Lucy almost a year ago, it seems appropriate that we finally have a new little girl to join the household. She’s already captured my heart, but Alex, Oliver and Sam aren’t there quite yet.

There’s nothing socially acceptable that’s as dangerous as drinking alcohol. Most people grow up being told to “drink responsibly” — and all of us see people abusing this drug in one way or another — but the truth is that drinking alcohol is always a terrible risk. The alcohol in these drinks is toxic and the human liver has to work hard to filter the toxins out. What most people don’t realize is that alcohol is classified as a known carcinogen by the World Health Organization — because of the well-established connection between imbibing and various cancers. Many people have taken refuge behind the idea that light or moderate drinking might be safe, but a new study shows that drinking even one drink a day increases the risks of 10 types of cancer. When I was a teen-ager, I looked around and saw the negative effects that this behavior had on a lot of people and decided not to start drinking, so I’ve never even tried this poison. The evidence keeps piling up that I was lucky to have come to that conclusion early.

Related Posts