The Story of the Golden Goose
Moral: Greed will lead to ruin. If you bite the hand that feeds you, then you wil suffer. Your greed was your undoing. [Note: at the beginning of this story, the government cut off the woodcutters source of production.]
The same loud protestations about how horrible and inaccurate the nasty people are who are insisting that the government get its fiscal house in order, or STOP SPENDING! Is that Greece or U.S? Yes. And it looks as if about half of Europe is in the same boat, too.
People kept warning the big spenders, but government people and their hangers-on didn’t believe the story about the golden goose: if you kill it, your riches will stop coming. The warners were vilified, ignored and patronized. Their motives and IQ were questioned. Their main point was never addressed.
This story seems to exist in several versions, some more embroidered and sophisticated than others. The moral is always the same. Our version: if you destroy (tax/regulate) the source of production (goose/wood), you will eventually lose everything.
The amazing thing is that the big spenders know this. Otherwise, why would they propose increasing taxes on gasoline in order to make us use less gasoline?
Now, it turns out that the highly publicized “basic math error,” made by S&P as part of their analysis of their downgrade of US debt from AAA to AA, was practically irrelevant, according to a Bloomberg story published today. Of course, this issue will be hashed over ad infinitum, again ignoring the basic point: US Govt Debt if Cr@p and must be reduced.