Bank of International Settlements Report: Ya'll It Ain't Just The Tea Party Types Warning Us About The National Debt!

HT Adam Smith Institute, who do a great job each and every day.

On a daily basis now, it seems, the attacks are being launched against those of us who insist that our government is out of control, and that the spending and borrowing path we are on will destroy the culture. The 'racist' word is a popular one, followed by 'redneck', 'ignorant', 'hateful', 'stupid', all delivered with that particular "I graduated from an Ivy League School, therefore you dare not question me." sort of sneer we've all come to accept as simply part of the package from Duh Left.

However, Adam Smith Institute passes on to us word of a scholarly study commissioned by the Bank For International Settlements, in effect, the mother-ship of central banking.

This paper, entitled The Real Effects of Debt, was delivered at Jackson Hole last week. While the world was waiting breathlessly for word from Helicopter Ben about whether he intended to climb back into his Chinook and scatter more funny-munney-hunny upon the gathered crowds, these geeks were delivering the unvarnished truth about the children in charge of our governments, both in London, Washington, and the capitols of Europe.

Stephen G Cecchetti, M S Mohanty and Fabrizio Zampolli are not redneck, racist, ignorant, unwashed, stupid AstroTurf TeaBaggers. They are scholars, presenting the plain truth that neither Obama, LittleTimmy,or most of Congress wish to hear: this simply cannot be allowed to continue without destroying our civilization.

It's not about race or class, ya'll. it's about simple, inexorable math.

Given the benefits that governments have promised to their populations, ageing will sharply raise public debt to much higher levels in the next few decades. At the same time, ageing may reduce future growth and may also raise interest rates, further undermining debt sustainability. So, as public debt rises and populations age, growth will fall. As growth falls, debt rises even more, reinforcing the downward impact on an already low growth rate. The only possible conclusion is that advanced countries with high debt must act quickly and decisively to address their looming fiscal problems. The longer they wait, the bigger the negative impact will be on growth, and the harder it will be to adjust.

Here's hoping that Biden will open his yap and call someone a bad name after they quote this paper, and then use the paper to finally humiliate him into silence.

Until we insist upon a culture that will not tolerate this irresponsibility from its leadership, we will struggle as an economy.

Let's git after it, ya'll. No time like the present.