HEADLINES

Thursday, December 16, 2010

When the money runs out

Margaret Thatcher once observed that "the trouble with socialism is that eventually you run out of other people's money."  That moment has arrived, both in Europe and the United States.

by John Hayward at Human Events

EXCERPTS:

London was gripped by massive demonstrations over cuts to university funding earlier this week.

France was paralyzed by massive strikes and demonstrations in October, brought on by the government's decision to raise the retirement age from 60 to 62.

After London, we saw a somewhat more restrained set of riots in Rome… once again prompted, in part, by cuts to university funding.  Things got much worse in Greece on Wednesday, as a massive general strike degenerated into violence.

Well, ninety percent of our deficit is due to spending.  There is no possible way to tax ourselves out of that hole, any more than England, Greece, Italy, Ireland, Spain, or Portugal could.

Here is the truth socialists attempt to cover with that illusion: the U.S. national debt is currently $13.8 trillion, while our annual Gross Domestic Product is $14.6 trillion.  That means you would have to seize nearly the entire economic output of the nation to pay off the debt.  The unfunded liabilities of Social Security and Medicare approach the GDP of the entire planet.

The Thatcher Moment is a black sun of unsustainable debt, rising across the entire globe.  The Left really is out of other people's money, all across the Western world.

There will be unrest when that happens.

FULL ARTICLE

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