How to Fix It: Cut Up the Plastic


“We have been borrowing massively abroad—some $850 billion in 2006 alone. With the government spending massively, and with American households saving zero, there was nowhere else to turn. We used to lecture other countries about what good economic policy meant; now they are laughing behind our backs—and occasionally lecturing us. While we seem traumatized by the idea of our government running a bank, we seem to accept the notion that a foreign government might have a major share in iconic American financial institutions—banks so important to our economy that they are too big to fail. Economists who have calculated the exchange rate required to end our trade deficit provide horrific numbers, suggesting that the decline in the dollar may have only just begun. Americans will no longer be able to even buy a cup of coffee in Paris. We can avoid these adjustments, which will be painful to us and our trading partners, but only by increasing our savings rate.”

NOW IS NO TIME TO QUIT

It's been a tough several weeks for those who care about the truth: Congress, the FBI, and the judiciary are seemingly more concerned with providing cover for a foregone conclusion than with uncovering facts.

But we also saw something incredibly powerful: that truth-tellers don't quit, and that speaking up is contagious. I hope you'll read why, even now, we believe the truth will prevail—and why we aren't giving up on our goal of raising $30,000 in new monthly donations this fall, even though there's a long way to go to get there. Please help close the gap with a tax-deductible donation today.

  • Nobel Prize-winning economist Joseph E. Stiglitz is the coauthor of The Three Trillion Dollar War.