Budget Deficits: The Cry for Bankruptcy Reorganization Grows

The only thing needing cutting are illegitimate claims on wealth.

The watchmen who went about the city found me.
They struck me, they wounded me;
—Song of Solomon

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Those who wouldn't know real economic wealth from Wal Mart or a pot farm rub me the wrong way sometimes...




Someone ask the American epitome of stupidity, Stephen Moore, what success are California and its fascist governor having in addressing their fiscal crisis by savagely cutting their state's budget? The problem is real wealth creation — made all the more acute presently by the recent collapse of a massive speculative bubble in real estate that once masqueraded as physical, economic growth. So, now we are exposed to reality that, current economic capacity simply is inadequate for keeping intact the mountain of liabilities built up over recent decades. The burden we face lies not in excessive government spending. Rather it is found in unsustainable financial claims whose existence saps investment in productive enterprise whose introduction of increased efficiencies adds to the nation's wealth.

Commercial lending has been collapsing for two years now. You would think the geniuses over at the Wall Street Journal might finally get it.

—Tom Chechatka