Okay, so I’m no artist, and I’m not usually thinking of political cartoons. But I’ve been reading Larry Burkett’s The Coming Economic Earthquake and this one struck me.
Larry discusses the different instruments that the Fed and the government can use to influence our economy. Between lowering interest rates, lowering taxes, and going to war, the government can hold off economic downturns for a while. However, the natural market correction that must come will be proportional to the dependence on these tools.
It seems to me that the US economy has been living off all three of these tricks for too long now and that when the market correction comes, we will find ourselves in desperate times.
So now to the political cartoon. As I’ve been thinking about this recently, it struck me as very ironic that the very politicians who are turning a blind eye to future effects of their own monetary policies thought it was necessary to bring the Major League Baseball players in to testify about their use of steroids.
So here’s the scene: A baseball player is sitting in front of a Senate committee to testify about the use of steroids in MLB. The Senators are all pointing fingers with “holier than thou” expressions. Yet, behind each Senator stands a doctor injecting these various market uppers.
As I see it, our economy is not only addicted, but now fully dependent upon the steroids mentioned above. Just as with the physical body, our economy will need larger doses to keep up its strength. However, interest rates can’t really go any lower and taxes will inevitably start going back up.
We’ve lost our interest in Iraq and in war in general, but watch, when the inevitable market corrections begin pressuring our wallets, we’ll find we’ve got a few more tricks up our sleeve. Maybe it will be North Korea, or maybe Iran. Who knows, if things get real bad, maybe it will be Russia or China. But God forbid that we go through another depression.
Sorry, maybe I should stop reading Burkett. His predictions have fallen flat so far, haven’t they?