Argentina defaulted again in 2010. They are in dispute in the New York Court of Appeal, the most corrupt Federal Court in the nation, with what they call “vulture funds”. At a press conference defending their fight in a US court against creditors demanding to be paid $1.3 billion immediately, they are at least acknowledging that with every bailout or deal, they only owed more.
Governments MUST stop borrowing. Jefferson, was correct. There can be no government borrowing. Look at what is happening because these people do not know how to run a government. They borrow to bribe the people “vote for me and you will get this”. This is not Halloween. Do the job and stop the stupid promises you never keep. These people are morons. If they would ever read a history book they might learn something.
Thomas Jefferson got it. He wrote in 1789: “The principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.” John Adams said in 1799: “Banks have done more injury to the religion, morality, tranquility, prosperity, and even wealth of the nation than they can have done or ever will do good.” In 1820, Jefferson wrote: “It is incumbent on every generation to pay its own debts as it goes – a principle which, if acted on, would save one-half the wars of the world.” It was Karl Marx who praised a national debt in 1873. “The only part of the so-called national wealth that actually enters into the collectives possessions of modern peoples is their National Debt.” So who do we follow? Politicians who borrow are Marxists. We should call them that!
As Adam Smith wrote in Wealth of Nations:
“Like an improvident spendthrift, whose pressing occasions will not allow him to wait for the regular payment of his revenue, the state is in the constant practice of borrowing of its own factors and agents and of repaying interest for the use of its own money.”