TruthSavvy.

A nation borrowing its way toward financial insolvency is not staging an economic recovery even when GDP picks up and the stock market rises. Some people talk about the “recovery of growth” like it is the ultimate goal of American life. What is this recovery that we supposedly need? It is nothing but debt facilitated GDP growth and asset inflation to create a built-in reward for leveraged mega-investors. That’s how Wall Street banks “create” the money to pay big bonuses.

Darrell Delamaide argues that President Obama must stimulate the U.S. economy sufficiently to boost employment figures in the near-term, otherwise Democrats will court a political disaster next year. However, the idea of America is far more consequential than today’s interest group driven party goals. In reality, Delamaide is not arguing for stimulus as much as he is arguing against the GOP. A better argument is to replace both reckless, feckless political parties and get the nation’s budgetary affairs in order.

Make no mistake, Fed Chair Ben Bernanke believes the Federal Reserve stands a fighting chance of re-inflating many segments of the economy and most categories of paper asset prices. Shrewdly, he is less confident that the Fed’s operations will result in a satisfactory recovery of America’s lost jobs. Fed Chair Bernanke can speak of the ongoing financial crisis as the worst since the Great Depression because his rescue of the banking industry will leave many Americans in the lurch.

“The Star-Spangled Banner” became the national anthem on March 3, 1931, when the Congress and President Hoover formally recognized the anthem. In the midst of the Great Depression, a song about the flag flying proudly in the land of ‘the free and the brave’ gave encouragement. While the Stars and Stripes are still aloft, our nation’s financial impropriety now drags the flag through the dirt. Our U.S. Congress will continue to make laws but the destiny of the country is no longer theirs to command. We have passed the tipping point.

It has been left to Federal Reserve economists and U.S. Treasury officials to destroy the American system through bailouts spun as anti-recessionary initiatives. What is a severe recession anyway but a well-deserved day of reckoning for financial excess? What is so wrong about the nation taking its needed medicine after a speculative binge?

David Weidner says that the 2008 crash has Americans wanting to loot Wall Street castles since Wall Street looted their homes. The good news is that Weidner counts himself among those who are angry with Wall Street. The bad news that he reads too much “revenge” into the public mind and not enough respect for the sanctity of real justice.

If California is too big to let fail, then so is every other state in the Union, since state equality in the Senate is a constitutional construct. If the California governor deserves success in lobbying the U.S. Treasury, then the federal government might as well bail every state (and every state-dependent municipality). This trend — already underway in the financial sector — will lead to the anarchical destruction of justice. When people realize that any hope of economic justice is lost, the American experiment with “free democracy” will die.

The investing public needs to make sense of the fast changes underway in the U.S. economy. One useful means of untangling current events is to compare the Russian experience with our unfolding situation. The comparison illustrates the likely fate of both countries.

Point well made, friend! If foreign investors lose confidence in the dollar, then the U.S. government must look elsewhere to fund the continuous rollover in treasury bills, notes and bonds. Eventually, deep pockets will be needed if the government is to meet its Social Security obligations (a prospect within ten years). But it will take much bigger money than Oprah can marshal to pull off this bailout. Anyway, the really big money is out of the public’s sight, not tracked by Forbes.

The key statement in Greg Robb’s insightful report is this: “So the tricky question is – if not the FED to the rescue, then who?” That question is more important than perhaps 98% of Americans realize. Will it be Robin Hood’s faithful company? Or the Wall Street Hood!