The Fatal Bubble
What defines an economic bubble? There are probably technical answers to that question, perhaps even involving percentages and such, but the basic inference is an apparent growth that’s really just full of air, deceiving people into behaving as if the cause of the increase is actually something of substance when, in reality, it could dissipate immediately upon exposure to the atmosphere.
In a recent letter to the Providence Journal, Philip Overton, of Westerly, expresses something that has likely been nagging at a great many of us, in recent months and years:
There is no fiscal integrity in our government right now and this is the next possible great bubble building.
The substance in which we’ve been deceived to believing is that the government can absorb the vicissitudes of the economy. We’re relying more and more on government not only to fill the craters that other bubbles have left when they’ve popped, not only to fill other bubbles (sometimes in the form of doomed companies), but also to conduct matters of economy and even personal well-being. It can’t last.
The only question is what happens when the government bubble bursts. A free-for-all of wealth grabbing and recriminations seems likely, and let’s not forget that there are those on the global playground relentless in the eye that they keep on our every step, in the hopes that the lone superpower will falter.