Thursday, January 13, 2011

Why Democracies Will Always Go Bankrupt

Dear Readers and Kind Fans,

This is the most important essay I’ve ever written:

Why Democracies Will Always Go Bankrupt

Here are the key paragraphs:
I have the argument that explains why fiscal deficits happen. Moreover, I can explain why fiscal deficits occur in a democracy in a manner which is different from any other sort of regime. My theory can explain why fiscal debts in a democracy grow once they start, and I can explain why this growth in debt inevitably, inexorably leads to the bankruptcy of the democratic regime. Further, I can prove—by sound and valid argumentation—that the United States is going bankrupt right now because of this process.
It’s an overall concept I’ve designated as the Democratic Bankruptcy Paradox: The paradox by which every democracy eventually goes bankrupt—regardless of the people’s will and intention of keeping it from going bankrupt.
That’s why it’s a paradox: The citizens of a democratic state are supposed to control its destiny. They obviously do not want their nation to suffer bankruptcy—yet in spite of their will and intent, democratic states always go bankrupt. Always.
This post will outline my proof of why this is so.



  1. This is kind of a ridiculous argument. Every type of state goes bankrupt sometime...whether they be monarchies, fascist, socialist or communist states. Please tell me a political entity that hasn't failed one way or the other.

    Also, "democracies" normally go bankrupt because they aren't democracies...what is meant by this is that they tend to exhibit fascist or socialist tendencies which tear them apart. (An obvious example is our socialist federal reserve bank which is outside the gamut of a "democratic" state.)

  2. I think we are going bankrupt because God needs to teach us all
    ( the voters and the bankers) a lesson. It is not all about "me".

    On another note: Gonzalo - you are brilliant but ?depressed. Something seems to be tormenting you. Anything we can do to help?


  3. Gonzalo, please stay depressed. If you don't you'll stop writing.


Knock yourself out!

The cult of stability is a culture of death.