Another week and another nail or two has been pounded into the coffin of our economy and way of life. Events that on their own have not triggered any immediate economic reaction but can be looked at as points along the way that led to the eventual catastrophe that we are running head on into. Points along the way that have become too many to name and mind boggling to witness as each day passes and the reins of power remain in the hands of radicals.
First, the national debt topped the $13 trillion barrier. This is complete insanity, our national debt is approaching 100% of annual GDP. Do you understand what that means? The amount of debt that we as Americans owe the Fed, China, Japan, Russia and every other country around the world that still believes our bonds are a good investment, is nearly the same amount as the total domestic output of the entire country for an entire year. That is staggering. That is unsustainable. That is ludicrous. Our government has completely imploded and has become our biggest liability. And they show no signs of letting up on the runaway spending.
Another, much smaller but significant event in the context of the national debt, and further indicating the priority of this administration, is the proposed $165 billion bailout of the union pension funds. This is pure madness, to spend money on something that is completely unsustainable in the first place, with money we don’t have, to further empower the union special interests that are wreaking havoc on the free marketplace. I read a report a couple weeks ago that the average annual salary, including benefits, of a public sector employee was near $120,000, while that of a private sector employee was just under $60,000. So, the taxes imposed on the $60,000 employee are paying for the $120,000 employee. This is unsustainable, yet there they are this week asking for $165 billion of the $60,000 a year employees money to continue the lavish excesses of the $120,000 a year employee.
This is Greece playing out in front of us. They created a society built on unsustainable entitlements and are now going to borrow money to continue to pay those entitlements. Borrowing money only delays the inevitable, either the entitlement programs will have to be massively cut to reasonable and sustainable levels, or taxes will have to be massively raised resulting in an enormous and equally unsustainable redistribution of wealth in order to continue those entitlements. This is also playing out in California and will most likely have equally catastrophic results. The big spending liberals will not relent on their unrealistic demands. Just today Hillary Clinton said the wealthy are not paying their fair share.
If the latter from above is chosen - higher taxes - it will eventually lead to a massive economic implosion. The level of productivity needed to produce the capital needed to sustain these entitlements is not achievable at those levels of wealth redistribution. Think that through, something liberals are unable to comprehend, yet something that free-market capitalists fully grasp. Once you reach a certain point of taxation, that which is being taxed decreases substantially. Therein lies the folly of the socialist, wealth-redistributionist thinking. They absolutely refuse to see the cause (high taxes) and effect (lower output) of their grand scheme of socialism and equal outcomes for all. As Al Sharpton recently said, the goal of MLK was not to put a man in the White House, it was to make everything equal in everyone’s house. This is lunacy to even attempt to consider as an actual policy or goal of our society.
Under their model of socialism the only way to maintain the level of production needed to support the currently unsustainable levels of entitlements is through force and intimidation. This is a key point, look at every socialist society ever attempted and you will find the elements of force and intimidation of the ruling class on the working class. The end result is always the same, lack of productivity, oppression, poverty, hunger. It simply doesn’t work. Socialism doesn’t work, the theory is noble enough but in practice human nature is meant to be free, something our founders profoundly understood. Something radical socialists like Obama and the liberals cannot seem to grasp. It is an easy equation, Socialism = oppression, Capitalism = freedom. Oppression leads to failure and poverty, freedom leads to productivity and success. Every socialist society in history proves the former, and America until recently proves the latter.
Back to my original point. We are heading for disaster. I expect a double dip recession that will make what we have been through look like a party; double digit unemployment, inflation, the Dow below 7,000 and angry socialist union and public sector workers will be rioting in the streets, all by next summer. You may think I am crazy since there seems to be so much optimism about the Republican Party regaining enough power to put a stop to Obama and his radical agenda. While that is a good point, and that may very well save us from something even worse then what I am describing, what is done is done. The ground has been paved already for what I am describing. There is no way around it and a Republican majority in the house and/or senate will not be able to stop it.
Big wins in November cannot pay down the national debt, they cannot undo the $787 billion fraudulent stimulus, they cannot stop this years $1.6 trillion budget deficit, they cannot stop the $165 billion union pension bailout, they cannot reverse or fix TARP, GM, Chrysler, FannieMae & FreddieMac, Goldman Sachs and the rampant corruption that has strangled our democratic process. All of this is coming due. The greed of Wall Street and the liberal politicians (not all Democrats by the way) will not stop and the Republicans will not be able to end it come November.
After November the fanatical policies and tactics of the left will only go into overdrive to further erode our culture and politics – as they did when George Bush was President. There are two things you can count on. First, how the liberal establishment behaves when it has power – this we have witnessed to our horror over the last 16+ months, and second, how the liberal establishment behaves when they don’t have power – something we witnessed to our horror during George Bush’s tenure as President. They were incredibly destructive in both capacities and I only expect that to get worse. They are not going to change, to suddenly see the light, to give up their quest for power & control and their willingness to do anything to get it. They will seek any and all avenues of destruction to regain power after November.
Until a conservative political party gains enough power to execute a truly conservative agenda, in spite of shrill and maniacal disapproval from the left, we will continue to re-live the nightmare of the last few years and continue down the path of destruction we are on. Until free-market capitalist America starts to march towards those principles that have been proven to work and can limit the power and influence of the liberal establishment, we will have chaos and decay of our way of life. Until those people yet to be identified are willing to stand tall against the radical backlash of threats and accusations of bigotry, racism, sexism and all of that, and march forward relentlessly anyway, we will be a country in chaos. Until the radically biased liberal media complex is reformed and once again becomes the watchdogs of power, there will be subversion and manipulation of an uninformed populace. As long as the liberal establishment has even one breath of life we are in danger. This is no joke, this is a serious problem that has been growing and devouring our country for decades. It will not go away with a simple win in November.
So, buckle up America the ride hasn’t even gotten bumpy yet.