I would like to briefly expand on a couple of points I made in my recently posted “America’s Trojan Horse” article (which can be found listed along the right-hand side of the main page.)
First, I wrote, “There also appears to be a growing insensitivity to higher deficits and debts.” This is alarming, as sums of money that recently (as of 1-2 years ago) would have been considered exceedingly high are now seen as relatively low. An example of this was the $150 Billion tax rebate (stimulus) that was distributed in the late spring and summer of 2008. At the time, an $150 Billion stimulus was considered very substantial. However, with the stimulus and interventions that have been enacted since, this $150 Billion amount almost seems relatively small by comparison.
I fear that we, as a nation, may be losing our perspective and comprehension of the sums involved here. While spending, or committing, $1 Trillion and multiples thereof (or $1 Billion for that matter) has become rather commonplace during this period of economic weakness, one should be mindful of the difficulty in earning (as in profit) these amounts of money.
The second concept I would like to expand upon is that of “Intellectual Leadership.” I devote a paragraph in the paper to this concept. The phrase is not one which is often heard, which is unfortunate. Nonetheless, I think it is a very important concept, especially during this period.
SPX at 1007.37 as this post is written