The system is dysfunctional

There's something very strange about issuing debt to solve a problem caused by too much debt.

If something cannot go on forever, it won't.

The system is dysfunctional.

Where does government get the money?

Every dollar government injects into the economy must first be taxed or borrowed out of the economy.

No new spending power is created.

It's merely redistributed from one group of people to another.

Economic growth -- the act of producing more goods and services -- can be accomplished only by making people more productive.

The current crisis

The current crisis resulted primarily from anticapitalists forcing banks and mortgage companies to lend money to people with little or no means to pay it back.

Market-suffocating policies

Market-suffocating policies will put the country in Great Depression.

What the government gives with one hand

What the government gives with one hand, through increase spending,
it take away with the other, through increase taxation.

Cheap and easy money

Cheap and easy money fueled by the FED generated speculation which involves buying for resale rather than use in the case of commodities, and for resale rather than income in the case of financial assets.

Fed gets itself and the economy in trouble

In 2003 the Fed cut the fed funds rate to 1% and kept it there for a full year through June 2004.

Growth in the third quarter of 2003 was 7.5%, yet the Fed kept its foot on the monetary accelerator for many more months.

Fed's main obligation is price stability.

Fed gets itself and the economy in trouble when it attempts to use monetary policy to manage growth.