Now the Keynesians are just drunk on power

When in doubt, get us deeper in debt:

Nov. 24 (Bloomberg) -- The U.S. government is prepared to lend more than $7.4 trillion on behalf of American taxpayers, or half the value of everything produced in the nation last year, to rescue the financial system since the credit markets seized up 15 months ago.

One has to wonder if Keynes ever reflected on the distinct possibility that politicians would never pay down the debt that they took on to stimulate the economy. That is the reason that Keynesianism is doomed in the long run. Sure, it is a good idea on paper, but in the real world, most politicians believe that no one ever won an election by promising to pay down the national debt rather than bring home the bacon.

There are only two possible outcomes here: inflation and/or debt. The interest alone on the national debt in 2008 was $261B. I would not be surprised if the 2010 federal budget has interest payments of at least $400B. At the rate we're going, the interest payments alone will quickly dwarf our peacetime defense spending within a few years. God help us at this rate...