David Hines
Credit where it's due
FacebookTwitterGoogle+
By David Hines
April 1, 2009

Credit's a good thing, isn't it? You get credit for doing good things.

When your bank credits your account, you have more money. But to the bank, the credit is a liability. A debit — taking money from you — provides more money to the bank. By accounting rules, a credit to the bank is a debit to you, and vice versa.

Double-entry bookkeeping has been considered a major innovation of the Renaissance. Like many such "innovations," it's a re-discovery. It has its roots in Classical times. Romans and Greeks had applied such a system, at least in a rudimentary form.

Today, it seems, it is considered not so much an innovation as one of those atavistic relics we can forget about. The new-style accounting is so much more attractive.

I'll give you credit if you know that for every credit there must be a debit. Most of our politicians don't, nor do a great many of the people who listen to them.

We're told that there's a credit crunch. It follows that there's also a debt crunch. The latter, we knew already. What we're told is that it must be fixed by extending more credit, thereby extending more debt.

But didn't the problems come about because there was too much debt not being repaid? Sure. So the plan is to fix it by incurring more debt that can never be repaid. Repayment is not even contemplated. Why consider something that is impossible? Government spending is gearing up to be the equivalent of the GNP. If it were to be repaid, none of us could afford even food.

What wonderful accountants we have in DC! They can create credits without corresponding debits. They perform this magic by merely neglecting to complete the accounting entries. They tell you that under their plan you'll get credit enough to make you rich, and it will cost you nothing. The multiplier effect, they say, will take care of everything.

This is the logical development of a system that creates money from nothing. Zero plus zero, or subtracted from zero, or multiplied by zero, still equals zero. In this sense, their accounting is still valid.

Of course, if you divide by zero, you get, "illegal operation; process aborted." And that's where we're headed.

I have to give them credit, and debit, for sheer stupidity.

© David Hines

 

The views expressed by RenewAmerica columnists are their own and do not necessarily reflect the position of RenewAmerica or its affiliates.
(See RenewAmerica's publishing standards.)

Click to enlarge

David Hines

Born in a mill town, David Hines has seen work as a furniture mover, computer programmer/analyst, and professional musician... (more)

Subscribe

Receive future articles by David Hines: Click here

More by this author

 

Stephen Stone
The most egregious lies Evan McMullin and the media have told about Sen. Mike Lee

Siena Hoefling
Protect the Children: Update with VIDEO

Stephen Stone
Flashback: Dems' fake claim that Trump and Utah congressional hopeful Burgess Owens want 'renewed nuclear testing' blows up when examined

Cliff Kincaid
The best Christmas bargain: A free Ukraine

Steve A. Stone
The man from The Perfect Place

Curtis Dahlgren
Orwell and Hubbard; a Brit and an American writer

Rev. Mark H. Creech
Revelation Chapter 6: The deceptive rider on the white horse

Cliff Kincaid
Saving America by saving Ukraine

Jerry Newcombe
Cancelling the “most wonderful time of the year?”

Judi Caler
Bluffing their way to an Article V Convention

Paul Cameron
The Marriage Equality Act in light of gay sex rings and molestations in group homes

Michael Bresciani
Why Libs, Dems, LGBT and Trans activists can’t identify the source of their own deep confusion

Rev. Mark H. Creech
Rev. Mark Creech issues statement on Senate passage of ‘Respect for Marriage Act’

Tom DeWeese
What we can learn from a red tide

Selwyn Duke
The new voting system that gave Dems a GOP House seat is dangerous. Here’s why.
  More columns

Cartoons


Click for full cartoon
More cartoons

RSS feeds

News:
Columns:

Columnists

Matt C. Abbott
Chris Adamo
Russ J. Alan
Bonnie Alba
Chuck Baldwin
Kevin J. Banet
J. Matt Barber
Fr. Tom Bartolomeo
. . .
[See more]

Sister sites