March 5, 2008

CNN Warns of a severe recession

from WhatReallyHappened.Com

CNN Warns Americans A New Great Depression Is Coming

An economy survives and prospers when the money circulates around, creating products that sell to generate more revenue.

In contrast, money taken out of the economy and poured into weapons development is "dead ended." The weapons either sit in storage until they become obsolete and are junked (which costs money to do) or used in war where they are destroyed. In neither case so these expensive devices create products that we can sell to bring more money into the system.

When too much money is dead ended in weapons, too little remains in general circulation to support the society and the infrastructure on which it depends. The economy and that society stutter to a halt, after having suffered through cheapened roads, cheapened schools, cheapened hospitals, etc.

The USSR collapsed when military spending choked the life out of their economy. Why the US Government persists in making the same mistake is a mystery.

No comments:

Post a Comment