Mayor Bloomberg: Infinite Debt is Just Fine
So who is lying about the effects of the sequester? Obama, who says your milk will go sour, airplanes and cows will fall out of the sky, and your house will burn down? Or NYC Mayor Bloomberg, who Thursday said the United States could owe “an infinite amount of money” and would not default?
Trick question. They’re both lying. Obama’s an old story for us. There’s no lie he won’t tell, no accusation he won’t make, anything for the cause of self-aggrandizement and for the cause of downsizing this great republic to fit his Unexceptionalist America vision. He’s boring. But let’s do examine the insidious words of America’s Nanny, Captain 17-Ounces-And-Its-Hard-Time-Baby.
Unlike Obama, Michael Bloomberg is not an economic nitwit. He is a self-made businessman worth $25 billion, about the tenth-richest man in America, and he inherited none of it. Certainly no dummy, but he is a controlling, coldly cynical black-hearted pirate who will gladly dismantle America and destroy the lives and freedoms of 300 million people (and thereby snuff out the hope of freedom and prosperity for billions more) just so long as he gets his kingdom and his spoils. Remember that when you read of how he takes truth and twists it to say something he knows is a lie.
“It depends on how long. If it lasts a few weeks, no. If it does, yeah. We get 10 or 12 percent of our budget from the federal government, not all of that is going to be cut back, but there would be effects–not good effects. But in the context of, ‘Is anything going to change tomorrow? Are we going to run out of money tomorrow?’ I’m sure I’ll get that question at the [next] press conference. No.
True enough, and we’ll table the matter of why New York City gets 10-12% of its budget from the federal government (from you and me, in other words). I suspect that’s true for every city, and it ought not be, but…. here we are. But he’s right. No immediate issues. In other words, ‘Obama is lying to you, you fools’.
But that’s not where he stops. He goes on to say not only that sequestration won’t significantly hurt America, but that America could borrow forever and have infinite deficits (therefore spend with impunity, racking up deficits forever), because:
Our debt is so big and so many people own it that it’s preposterous to think that they would stop selling us more. It’s the old story: If you owe the bank $50,000, you got a problem. If you owe the bank $50 million, they got a problem. And that’s a problem for the lenders. They can’t stop lending us more money.
In the short term and in a limited fashion that has some truth. Lenders become enslaved to a huge borrower. Yes, you have lenders (China, Japan, and American banks) over a barrel for now.
But there is an end to it and Bloomberg knows it. They cannot continue forever to add capital and add capital and add capital to a single consumer who will never pay it back. These lenders, these financial institutions will run out of money to invest – in you and in anybody else. They will collapse, the economic system will become illiquid and crash. Then civilization will collapse. It cannot *not* collapse.
Bloomberg knows this. But he makes a logical-sounding argument, so that the media will hear what they want to hear, that voices of caution will be ignored or shouted down, that Democrat policies and agendas will not be opposed.
Why does he do this? I don’t know, I can only guess. My guess is that as America’s economic system fails, that the transition to a non-free system will be orderly and he can maintain his status at the top of it. I mean either it’s that, or he’s just crazy.
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