Friday, July 17, 2009
Spock would not approve of this reasoning from Vice-President Biden. Here he is speaking - garrulously as usual - at a townhall meeting on the health care bill:

"We’re going to go bankrupt as a nation,” Biden said.

“Now, people when I say that look at me and say, ‘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.”

But Biden isn't wrong. Understand that this is the logic of the entire global economic system. The debt must be expanded to prevent it from collapsing. The bubbles must be blown bigger to stop them popping. Artificial inflation must be ignited to keep prices from ever ticking down.

You can be certain of one thing. It won't end well.

As for a new government health care system, which Biden was talking about, I believe it's an absolute necessity. The current mostly private system is increasingly exorbitant for those included in it, and useless for the dozens of millions excluded.

But with the TARP slush fund and the bailouts and the endless Fed borrowing, leveraging and money-printing having robbed the country of its last iota of real assets, how can a new health care system be built? How will any of the important projects of the future, like space travel and sustainable energy, be afforded? They won't be.