The real problem is that we have no savings pool to support sound lending, due to years of misguided Federal Reserve policy. In its desperation to “fix” the problem, the Fed is now creating more imbalances than it's reducing. The banking system is broken from years of cumulative abuse. All the Fed is doing now is changing private debt into public debt by accepting the risks itself. But, even here, it's not really accepting risk for any losses it sustains in the process, as they'll be made up by directly printing money.

A balanced economy needs a savings pool commensurate with its debt pool...period. Any solution that deviates from that is going to make things worse, in the long run, for our children. It took years to deplete it, and it will take years of saving (in conjunction with debt reduction) to balance it.

Notice that the government’s solution directly opposes this: They want zero interest rates so that people can borrow even more “money,” save nothing, and spend everything. This is ludicrous on its face.

We as a people must return to logic and sound thinking. We must immediately do 2 things: Start encouraging people to save their money (zero interest rates don't do that), and promote productivity (the government cannot do that; only the private market can).

We need to allow interest rates to rise so people can save. We need to cut government spending by 95%. We need to eventually cut taxes by 95%. We need to decentralize government’s power. In the short run this will hurt - but in the long run our children and this country will be much, much better off.

Unfortunately, we will never see if this works. We know there will be a large “stimulus” plan from the government. I can only urge the new President to use the bulk of it in the best way possible: for education. If we're going to borrow against our children’s standard of living, we should use it to arm them with the best education possible.

Regardless, it seems we'll see what it's like to have our currency completely destroyed by the pompous few we have given power to.

Risk is getting higher.