Bailout 101
2,500 years ago, most modern scholars believe a Chinese general named Sun Tzu wrote what is usually referred to as The Art of War. In it, the general writes:
“Poverty of the State exchequer causes an army to be maintained by contributions from a distance. Contributing to maintain an army at a distance causes the people to be impoverished.
On the other hand, the proximity of an army causes prices to go up; and high prices cause the people’s substance to be drained away.
When their substance is drained away, the peasantry will be afflicted by heavy exactions.
With this loss of substance and exhaustion of strength, the homes of the people will be stripped bare, and three-tenths of their income will be dissipated;while government expenses for broken chariots, worn-out horses, breast-plates and helmets, bows and arrows, spears and shields, protective mantles, draught-oxen and heavy wagons, will amount to four-tenths of its total revenue.”
Perhaps another trillion-or-so American taxpayer dollars will, once and for all,
prove this old fool wrong.
