Monday, February 15, 2010

Garry Kasparov: The U.S. Goes Wobbly on Russia -

Here is an even better quote from the article linked below. Is this a new word he has coined, "Ponzian"?

The similarities are striking. So who are the oligarchs in the US economy? It's clear there are some, but maybe they are not so easily classified. Definitely included would be most of our permanently entrenched elected officials, perennial appointees, PAC founders, labor union leaders, Wall Street middlemen. How about union members themselves, government employees? What other groups don't have to play by the same rules as the rest of us?

Massive U.S. borrowing, and the false sense of liquidity it produces, is currently all that is supporting large swaths of the debt-ridden Russian economy by providing cheap credit to the overextended oligarchs. Mr. Putin's cronies and other leaders sitting on failed economies benefit as America continues to move from Keynesian to Ponzian economics, desperate to postpone the inevitable reckoning. Runaway inflation in the U.S. is being put off because dollars are making their way out of the country—not by creating jobs or industry, but by boosting gains in the speculative stock and currency markets.

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