great post - thanks. unfortunately, it seems that not only is this true, but inevitable. there is nothing we've seen in the past 5 years that hasn't played out many times before, step by step, in past empires. accumulation of power in fewer and fewer hands far removed from the people, collusion, favoritism, graft, abuse, deceit. elect the insane and the blatantly criminal to power. fatten up the populace, panis et circenses, keep them distracted in their vulgar pursuits while taxing them to the breaking point. always funded by debasing the currency and racking up debt, debt, and more debt.
Your point about credit financing is spot on. The US is full of credit whores. Go to say the former soviet republic of Ukraine ( where one of my American friend/mentor lives) and there is no credit, cash or nothing. That's a bit too extreme and it's stiffiling their economy, just like the credit orgy is bring ours down. Extremism, that's the root of all evil IMO. Whether it's a credit orgy or Jihad freaks blowing themselves up, extremism is dangerous. I am sure a smart person like yourself has read The Millionaire Next Door. If I can't afford it with cash, other the my mortgage, I don't want it, period. It make for a less stressful trading, that's for sure.