7/14/11

Thought of the day

The size of the government deficit relative to the size of the economy, in any country, anytime, reflects the concentration of power in that country. The higher the deficit, the higher the concentration of power.

The outcome of high concentration of power is very slow growth in that country.

And the income diferential increses with the deficit. Why? Because "us" are being forced to pay "them" the interest on the bonds they hold.

Who are "them"? The bondholders who financed the deficit. And as the deficit increses the transfer of wealth to "them" keeps mounting. Thus further increasing the concentration of power.

The problem is that this process cannot be stopped.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
2009 Market Timer of the Year by Timer Digest

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