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Cicero was wiser than Obamo and Bernanke

“The Budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance of foreign lands should be curtailed lest the Republic become bankrupt. People must again learn to work, instead of living on public assistance.”

 

Marcus Tullius Cicero (106 BC to 43BC)

 

Cicero was a Roman philosopher, political theorist and Constitutionalist. As the son of a wealthy patriarchal family he was positioned near the center of roman politics and saw the destructive way that Rome’s leading politicians and their minions devalued the roman currency. Over time Rome’s currency, the denarius had its’ silver content reduced from 95% to eventually 5%, while Rome imported more and more of its needs from the outer areas of its’ empire, continually increased the size of the civil service and funded major wars.

 

Just a few decades ago the USA was the greatest creditor nation on earth. Today it is the biggest debtor nation on earth, and the pace of this debt is still accelerating. This year the US will issue more Treasury Bonds than the rest of the world put together. The balance sheet of the Federal Reserve has deteriorated tremendously, between December 2008 and March 2009 it purchased fixed-rate securities worth 1,700bn, almost 12% in terms of GDP. 1,250bn of this is near worthless mortgage-backed securities.

 

A recent report stated:

 

“ the federal budget is on an unsustainable path – meaning that federal debt will continue to grow much faster than the economy over the long run…”

 

The report concluded that the USA would not be able to produce a budget surplus in the next 70 years! This report was produced by the Congressional Budget Office. I wonder if Obama and Bernanke read it?

 

Obama didn't initiate this deterioration in our nation’s wealth, but he is aggravating it by initiating spending at a faster rate than any other leading US Politician before him, and Bernanke is pandering to his political master by putting this country into more and more debt.

 

“Those who cannot remember the past are condemned to repeat it”

 

George Santayana (1863 – 1952)

 

   

 



Disclosure: Long on Gold and Silver