ABOUT TOM WOODS

Thomas E. Woods, Jr., is the New York Times bestselling author of 11 books, including The Politically Incorrect Guide to American History and Meltdown (on the financial crisis). A senior fellow of the Ludwig von Mises Institute, Woods has appeared on MSNBC, CNBC, FOX News, FOX Business, C-SPAN, Bloomberg Television, and hundreds of radio programs... (Read More)



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Deep Thoughts, by Mike Bloomberg

1st March 2013      by: Tom Woods     

New York City’s mayor on the sequester:

We are spending money we don’t have. It’s not like your household. In your household, people are saying, ‘Oh, you can’t spend money you don’t have.’ That is true for your household because nobody is going to lend you an infinite amount of money. When it comes to the United States federal government, people do seem willing to lend us an infinite amount of money.… Our debt is so big and so many people own it that it’s preposterous to think that they would stop selling us more. It’s the old story: If you owe the bank $50,000, you got a problem. If you owe the bank $50 million, they got a problem. And that’s a problem for the lenders. They can’t stop lending us more money.

(Thanks to Joe Helms.)

Unlearn the Propaganda!

  • Anonymous

    Like I said years ago when Cheney said “Deficits don’t matter”: Two words: “Nuclear Blackmail”.

  • Anonymous

    Bloomberg has it wrong.. they can and will stop lending us money. China is stockpiling gold and buying up mining operations… most people ignore all the trade agreements countries have been making that exclude use of the dollar.

  • http://twitter.com/ChrisRossini ChrisRossini

    What’s “preposterous” is that people take this dictator seriously.

  • Anonymous

    I agree.. So, it’s either default or hyperinflation….Flip a coin?
    Ha! Talk about regime uncertainty!

  • Jimi

    Is Bloomberg high?

  • Evgeny

    *And that’s a problem for the lenders. They can’t stop lending us more money.*
    First statement is true for future.
    Last statement was true for decades and is true right now.

    This is kind of half-truth.
    Can we provide arguments now to prove this is a half-truth?

  • Anonymous

    Well he’s right in the sense that this is why the wheel keeps spinning. But it’s math as they say. At some point the house of cards gets so big that all it will take is a light fart to blow it over. The people lending the money, what happens when they run out of money to lend? What happens when the dollar crashes from inflation? What if OPEC drops the dollar? What if we have a huge natural disaster? What happens when our debt interest is so high it equals our tax revenue? What’s the stat, I belive it’s 5,000 new social security and medicare recipients/day? So that’s what 1.8 million/year, another 7.3 million by the end of Obama’s term? 7.3 million new takers and fewer earners. How much more do those people cost? We’re doing to have an epic downfall.

  • http://www.facebook.com/steve.mcnair.5030 Steve Mcnair

    I guess he figures they’ll keep lending to us with all the money NYC will save on 16 oz. sodas, styrofoam, salt, transfats, etc.

  • Luke Sunderland

    Wow! The lunacy reaches new heights on a daily basis anymore. How can anybody take this man seriously?

  • Dorwin Dow

    THEATER OF THE ABSURD

    Théâtre de l’Absurde) is a designation for particular plays of absurdist fiction written by a number of primarily European playwrights
    in the late 1950s, as well as one for the style of theatre which has
    evolved from their work. Their work expressed the belief that human
    existence has no meaning or purpose and therefore all communication
    breaks down. Logical construction and argument gives way to irrational
    and illogical speech and to its ultimate conclusion, silence.

    http://en.wikipedia.org/wiki/Theatre_of_the_Absurd

  • Anonymous

    Aaah, an engineer’s take. Good stuff.

  • the ‘liberal rater’

    Everyone is printing money. So they print money to lend to us and we print money to pay them back. Maybe it ends when someone runs out of ink.

  • http://www.facebook.com/people/Brandon-Clobes/772274525 Brandon Clobes

    lol tom certainly does have a way picking titles its been making me giggle ever since i read it

  • Anonymous

    It ends when everything they tax goes to pay the interest on the debt.

  • Anonymous

    China’s housing market has also peaked and started to crumble. 30% vacancy, and the average apartment costs 45 times average yearly income. They’re in for a huge housing bubble collapse, and won’t be buying much more US debt.

  • Anonymous

    “What happens when our debt interest is so high it equals our tax revenue?”

    That, friend, is the end.

  • Anonymous

    The Chinese are heading into a recession. The only entity willing to buy our debt, loan us money, is the Federal Reserve.

  • http://www.facebook.com/people/Benjamin-Allen-Whetham/727059078 Benjamin Allen Whetham

    Not gonna happen. China has more than enough second strike capability to call that bluff.

  • Anonymous

    Remember, these are the guys who said Iraq was gonna be a “cakewalk”



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