Insightful, frustrating and depressing. It makes one wonder whether the smartest guys in the room are just stupid or is there something menacing at work. We the people have now purchased the junk bonds of a decade or more of private excess. At first, the administration said “no, no, don’t worry, like private investors Americas will get their money back over time as the value of those bonds rise.” Now, of course, you are getting the first admissions by the administration that this was a fallacy, that those bonds were worthless from the start, and that the only way we will pay off the debt used to buy that junk will be increased taxes on the middle class. That of course is on top of the crippling decline in purchasing power to come, as you note, for those measly dollars that the government lets us keep.

This is a fantastic primer for those that find themselves scratching their heads, wondering just what has happened over the last couple of years. How quickly we went from boom to bust, leaving the ‘average Joe’ just dumbfounded.

I especially appreciated the ‘dam’ analogy. I think that is an excellent visual description of the scenario we find ourselves in.

I was hoping you might comment on the phenomenon of ‘stagflation’ as well. I think it would be helpful to the lay person to understand what that term means, and where it may fit into the picture.

Keep up the great work!