Borrowing Your Way to Prosperity?

I've been wading my way through Empire of Debt. Not that the authors have much really new to say that hasn't been said before by many others. Warren Buffet calls America "Squanderville", and the book has many examples. The authors also use quite a bit of rhetoric to eventually come to a few quite simple conclusions:

"America's empire of debt rests on some widely-held delusions:

• that one generation can consume and stick the next with the bill
• that you can get something for nothing
• that the rest of the world will take American IOUs forever
• that house prices will go up forever
• that American labour is inherently more valuable than foreign labour [er... labor].
• that the American capitalist system is freer, more dynamic and more productive than other systems
• that other countries want to be more like America, even if it's forced on them
• that the virtues that made America rich and powerful are no longer required to keep it rich and powerful
• that domestic savings and capital investment are no longer necessary
• that the USA no longer needs to make things for export"

Unfortunately, like all previous empires, probably nothing will change this sorry state of affairs to arrest the demise of this current empire. It's probably just a matter of time. Also unfortunately, those who hoped Obama would set the USA on a different track, seem to be headed for more disappointment. Happy New Year!