To: i-node who wrote (507328 ) 9/10/2012 1:19:50 PM From: skinowski 3 Recommendations Read Replies (1) | Respond to of 793914 Consider that during the Great Depression, we didn't have millions of seniors on Medicare or Social security; we had no unemployment benefits; no food stamps or other "safety net" programs; no credit cards (little unsecured consumer credit at all). All these things serve as "buffers" against people feeling the pain of their economic conditions for a very long time. As FDR did in the 30s, politicians will continue to inject anesthesia as long as they can. To a significant extent those "anesthetics" - as well as others - are paid for through deficit spending. It's not easy to find the exact numbers, but it appears to run in the area of $100-120 billion a month. That is a big subsidy. Without it, we would have no delusions about "recovery". Some people say those dollars are not "real" - but they are. It is true that most of them originate somewhere in the heart and mind of Mr. Bernanke - but by the time the checks get cashed and the money spent - those dollars become fully real. When things eventually blow, it will not be necessarily the end of the world. In recent decades countries like Argentina, Russia, Israel saw their currencies go to zero. And look -- Israel actually entered a period of prosperity. The others are also doing not too badly. Their savers who trusted their governments were left with nothing, but life goes on. But, that said, the depression of the 1930's led to a great war. Will the "progressive" ideology get discredited when things collapse? Not necessarily. Politicians will find whom to blame, and claim that we need government more than ever. Like for enforcing fairness in food rationing.