You HAVE to see this video; it is the most amazing and articulate statement of why the strategy the UK and the US have been trying to employ to end the recession is brazen idiocy.

There are a lot of incorrect assessments out there of how this recession occurred; most of them fathered by people with deep roots in either the Democratic or Republican parties: the holders of the bi-opoly of power in our country. However, if you misdiagnose the problem, then not only will the treatment not work, but it could cause another serious problem.

The problem is not liquidity of banks, or job creation, or the collapse of Freddie and Fannie… the problem is and always has been debt. Personal debt in modern society is so high, and savings so low, that almost no household, business, or government entity can weather a storm such as a cyclical drop in real estate values. Those resulting foreclosures merely started the dominoes falling, dominoes laid out by decades of unwise practices and policies of leaders of government, businesses and homes.

Had the US and UK saved money for a rainy day during the prosperous years of the Clinton and Bush eras, THEN maybe spending money to stimulate the economy would make sense. However, that isn’t the case. In reality, we are borrowing money in order to stimulate an economy dangerously overburdened already by debt.

“You cannot borrow your way out of debt!” What about that statement is so hard for politicians and VOTERS to understand?!

I heard a member of congress today say that Obama’s proposed budget incurs more debt than the combined budgets of every president of the United States from George Washington to George W. Bush.

Remember, Rome wasn’t conquered by an outside power; it collapsed under the ineptness of the leadership of its own leaders. It was a financial collapse that ended the empire.

At any rate, here is the must see video.