“Our constitutions purport to be established by ‘the people’ and, in theory, ‘all the people’ consent to such government as the constitutions authorize. But this consent of ‘the people’ exists only in theory. It has no existence in fact. Government is in reality established by the few; and these few assume the consent of all the rest, without any such consent being actually given.”
- Lysander Spooner; hat-tip to Clive Hale.
Like so many things, it comes down to context, perspective and interpretation (which degree might be more useful in the pursuit of rational investment management: Economics, or English ?). From a narrowly financial perspective, government debt is an asset class, albeit an asset class now offering vast potential for capital losses for the unwary. From a broader social perspective, government debt is taxation deferred, a burdensome claim on all our individual futures, a reflection of wealth to come being diverted from the private sector to the state and its putative political leaders. A simple ‘heat map’ of the world, in this case showing public debt per capita, reveals the fault lines quite explicitly:
To read more,
http://www.youtube.com/watch?v=8PaoLy7PHwk
Appropriate music while reading this...
Posted by: John | June 06, 2011 at 10:29 AM
Respec'.
Posted by: Tim | June 06, 2011 at 04:48 PM
The good thing about your information is that it is explicit enough for students to grasp. Thanks for your efforts in spreading academic knowledge.
Posted by: computer repair sacramento | June 15, 2011 at 05:25 PM
Great article! Would love to read more like it!
Posted by: Computer Repair San Antonio | September 09, 2011 at 08:44 PM