When public debt abounds, politicians look to slippery ways to keep buying votes with tax dollars while reassuring skittish markets that everything is okay. America, of course, faces a deficit showdown driven, largely, by the explosion in federal expenditures during the reign of Obama. The glut of mandated money (currency backed by the “full faith and credit of the United States” — and nothing else) has produced predictable economic behavior.
People invest in what they believe will be safe. Real estate, historically, has been a good investment for most Americans. But when the federal government pushes and bribes big lenders to make imprudent loans, and the predictable avalanche of defaults occurs, then an artificial glut of housing drives down the market price and strips hard-working families of the investment that had been the principal economic asset of the family.
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