Russia poised to teach US leaders another economic lesson

For the past several years it seems that the world has spun into a strange Twilight Zone where everything is topsy-turvy and what went around is coming back in truly Mad Hatter style.

The latest evidence of this is the US government’s foray into the minefield of unfunded debt obligations and massive deficits resulting in an expansion of the federal bureaucracy by historic numbers.

Yet back in the sinking US, according to the prestigious Goldwater Institute, the US federal health care bill creates somewhere between 47 to 160 new agencies and offices. Maybe. The actual number is unknowable according to the apolitical Congressional Research Service.

The net result is Russia’s debt as a percentage of GDP is shrinking as the USA’s is steadily climbing. To bolster the strength of the ruble, Russia intends to sell sovereign bonds on the world market while the US sells debt to the Federal Reserve—future debt it is taking on primarily to meet current debt obligations.

Putin is rebuilding the house of Russia while the US administration and Congress is building a house of cards.

And a flimsy house it is too…

Entire article here.

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