By Nicholas Contompasis
Let's be clear, I'm no fan of President Obama. I'm a Conservative, pro Israel Christian and have been for decades. But, a few things need to be understood about our U.S. economy and for that matter the world economies.
Make no mistake, most of the stimulus money that was legislated would have happened even if the Tea Party had run the congress.
Why, because most of the money was used to keep local, state and federal government agency's from folding. Thus, leading to extreme civil unrest.
We know that a portion of this money ended up in bogus green projects and other Liberal ventures, but all-in-all it did keep civil order that has lasted to this day.
Being a Monday morning quarterback doesn't help.
The facts are that they did it, it worked and we still have a fire department - helping with disasters, keeping local governments functioning, retaining teachers to keep kids off the streets and a police force - keeping law and order.
Yes, some of the money ended up in union coffers, a small price to pay for civil order.
You don't want civil disorder, that's when things get out of control.
Now, down to the meat of what this is all about. The dirty secret that all politicians from both sides of the aisle knew was that we really did it this time. Yes, we drew our economy's net worth below zero leaving us totally and completely insolvent. It happened to all of our banks and major corporations that played the finance game such as General Electric that at the end of 2008 was insolvent because of its finance wing.
In practical economic terms our homes are, at this time, worth zero. Yes, that's right, zero.
What economists knew and were frightened would get out was that if the economy was not backstopped in 2008 and 2009 we would've never come back economically. Many in our country and around the world would've experienced extreme strife and violence. Food and normal everyday needs would not have been met and mini wars in many countries would have sprouted up until stability was maintained.
The debt that the Eurozone and now the U.S. has is unsustainable, and is now being slowly in a seesaw style deleveraged. Meaning that both entities are devaluing each other's currency till there is some real stability in the markets. But, to be honest, they're not sure if it'll work. This is the big, big problem the G-8 faces for the forseable future. What if they're wrong? What if it doesn't work?
Our leaders both foreign and domestic cannot afford to have riots in the streets, millions could die and societies would tumble. That's why they won't talk about it in public and that's why you're reading this, because you know deep down it's true.