Here are some pretty pictures I think I am thinking about:
1. The USA is bankrupt, part 3,478. It’s been at least 1 or 2 blog posts since I talked about the USA being bankrupt so I would be remiss if I didn’t remind you that the USA is actually not bankrupt at all.
This chart comes to us courtesy of Mary Meeker’s annual internet report. Now, the annoying thing about this chart is how the government is being compared to a corporation. This doesn’t make sense. The government is more like a non-profit. For instance, let’s pretend we live on the Island of Pragcap and the neighboring residents at the Island of Mises.org find us to be intolerable defenders of fiat money and attack us. In response, we form a government to organize our defense and fund that war operation by pooling our capital. We spend millions of fiat dollars and defeat the fools at Mises.org because they tried to fund their operation with gold bars and they couldn’t mine the gold fast enough to keep up with their financial needs.¹
Anyhow, the point is, this war would obviously be a money losing operation for the government. It is hard to earn a positive return on investment when your workforce dies and you blow up your inventory. But this is basically what a government is – it is a pooled entity that we use to finance things we need that the private sector economy probably can’t earn a profit doing. Whether or not these things earn a profit does