Things are bad but sometimes things need to collapse so you can rebuild the foundation.

This Isn't a Recession, It's a Collapse.

We're too far in debt. The government, states, Corporations, foreign countries, and most importantly the American middle-class consumer are buried under an exponential debt burden. We all borrowing too maintain. As Biden said yesterday:

‘What are you talking about, Joe? You’re telling me we have to go spend money to keep from going bankrupt?’” Biden said. “The answer is yes, that’s what I’m telling you.”

To be fair he was talking about health-care reform, and on this issue he is right, however it reflects a general attitude. This attitude has historically lead to success, borrow from the future to support current operations. Humans are very poor at understanding mathematical decision making. Our brain naturally prefers immediate reward over long-term gain. The very smart people have come up with complex reasoning on why we're much better off borrowing from our futures to support our current standard of living, but it's only rationalization. Any truly objective view of our current situation find a mathematical breaking point, and our current path is going to lead to very quick changes in the world economy. The kind that makes last September look like an Enron.

The Federal Reserve’s policy of Quantitative Easing is failing. They're selling treasury bills to finance extra spending, but the problem is that they're loaning the banks printed money at 0% interest to buy treasuries at more then 3% interest. Treasury prices are maintained because there's a buyer and banks are built up with printed money. The only unknown, the only thing keeping the world economy moving is that we don't know exactly how much money the banks are borrowing from the fed. If it was known exactly how much money the fed (a private corporation) has been printing, everyone's money become questionable. Exactly how many dollars are out there? Ron Paul's bill to audit the fed can not pass without devastating effects on the economy. Most Senators are heavily financed by the bankers, it will be very telling to see who votes against it, if it ever even gets a vote.

Everything we think we know is based off of smoke and mirrors, something has got to give. The top 1% controls how the capital flows, in a capitalistic economy capital flow determines policy. This is true for the middle-class, government, and corporations. The problem is that the capital flow of the rich looking after their own interest overwhelms the interests of all others. You can't publicly say (at least on major media, and thus in any professional institution) that there is a class war because they control what people can say, you can't even suggest the possibility of conpiracy without immediately being discarded as a nut job because faith in the system is required for the system to work. Once people actually understand what's going on things will descend into chaos. Goldman Sachs has done more harm to the country then Osama Bin-laden
yet they're giving them more and more money. They're tearing this country apart and we're giving them more money. They are stealing from each and everyone of us and we're giving them more money. We can't have free health-care but we give banks Trillions? Things are bad but sometimes things need to collapse so you can rebuild the foundation.