Thanks … for the stim-u-lus … Oh, well, it was swell while it lasted

GAO Chart Forecast Debt % to GDP

(To the tune of Bob Hope‘s “Thanks for the Memories” and apologies to him.)  By the way, you can subscribe to this blog in the box to your right.

What are the consequences of federal policies, and what is the message of the 2010 election?

There is plenty of oil and gasoline on hand, and pump prices usually fall this time of year. So what’s causing the run-up? Most analysts point to the Federal Reserve’s $600 billion economic stimulus effort.

via Not-so-happy holidays ahead at the pump as gas prices jump –

Welcome to the tip of the iceberg. The Fed, which in theory is independent of Congress, just laid a whopping tax on you in the form of inflation.  This perceived need for a “money flood” stems from a long series of ongoing mistakes.  At the root of the monetary problem we put two nails in our national coffin long ago:  (1) getting off of the gold standard, and (2) opening trade with China.

Between Congress’ bad fiscal and regulatory policy (and I’m not speaking just of the last two years) and unions driving jobs overseas to a now-open and ever-willing China (and others), America is broke and our foreign-state bankers are about ready to cut off our credit.  We’ve borrowed about all we can and printing money is the last ditch effort to prop up our economy.  To a degree, that used to work when the dollar was perceived as having an intrinsic value.  It doesn’t, it’s just paper.  Any intrinsic value ever attributed to it was due to the strength of America — and now we have a president who is apologetic for who we are as a nation!

The effect of the Fed’s printing more money that is nothing but paper now, is to to devalue the dollar against all of the world’s major currencies.  Since we buy most of at least our discretionary goods from overseas, the prices go up. Add to that the fact that there are many emerging countries beginning to consume a LOT more in goods, you then have higher demand for the same goods we are buying and that also drives up the price.  See the inflationary pressures?

Now put that in the context of  the now not-so-secret push for a “new world order” with people like George Soros pushing for a “gradual decline” in the value of the dollar.  As an aside, he is also a huge proponent of legalizing marijuana.  But back to the point.  Take a look at this YouTube clip, especially at about the 3:20 mark to 3:35:  “… an orderly decline to the dollar is desirable ….”  Really?  Only if you have the goal of dragging the economy of the U.S. down to the lowest common denominator.

This is part of the thinking that is apologetic for what America is, and which denies American exceptionalism. This thinking decries success and — unless you’re George Soros — repudiates the notion that you should be able to build wealth if you are creative and successful.

In that YouTube clip above, Soros openly discusses the “new world order” notion and his goal is clear:  redistribution of wealth on a global scale, justified because he (and I suggest Obama and the hard-core left part of Congress) believes that we — Americans — are “too rich” and too powerful globally and the world must become a level playing field.

Balderdash, I say!  That notion is heresy to every hard-working American who has pulled himself up by the bootstraps.  It ignores the positive contribution that America has made — and continues to make — in every corner of the world.  It ignores the many ways that as a people we seek to give people a hand-up rather than a hand-out.  People at home and globally have benefited from the largesse of the American people.

Thomas Jefferson (in a quotation attributed to him, but not necessarily well-documented) is said to have stated

The democracy will cease to exist when you take away from those who are willing to work and give to those who would not.

Accurately attributed or not, the concept is obvious. Yet we have national policies that continue to drive us directly to that result by taking away from the producers, by making it more difficult for them to produce, by marginalizing entrepreneurship and success — and Soros would accomplish that on a global scale if he has his way.  George Soros is a very scary guy!

We are reaching — or perhaps have already reached — the point where the takers outnumber the makers.  I found a great discussion about that concept

In that year of 1967, for instance, the United States had a population of 198 million, a GDP of $825 billion, a federal budget of $157 billion and federal “social welfare” expenses of $26 billion. This placed “social welfare” spending at $131.30 per capita, 3.1 percent of GDP and 16.6 percent of federal outlays.

In 2010, the United States has a population of 308 million, a GDP of $13.3 trillion, a federal budget of $3.6 trillion and federal “social welfare” expenses of $2.1 trillion. This places “social welfare” spending at $6,818.18 per capita, 16.1 percent of GDP and 59 percent of federal outlays.

Bradley Harrington, via The Coming Civil War: Producers Vs. Parasites – The Philadelphia Bulletin.

I commend to you the reading of not only the article but the comments thereunder.

Read that again:  Social welfare spending in 1967 was 3.1% of GDP, and in 2010 is 16.1%. Now maybe some of that increase was needed in order to doing a better job of caring for those truly in need. OK, but 5-1/4 times increase attributable to that?  If you live in the real world and look around you, you know that’s not the case.

A fundamental problem is that the feds keep trying to “fix things” by social engineering through taxes and regulation when all they really need to do is in the few categories that only a federal government can do (a military, interstate highways, air safety, etc) and get out of the way of the makers of goods and services.  Harrington, writing in the article quoted above was quoting an oh-so-true statement from Ayn Rand:

“The task of defining ideas and goals is not the province of politicians and is not accomplished at election time: elections are merely consequences. The task belongs to the intellectuals. The need is more urgent than ever.”

– Ayn Rand, “The Wreckage of the Consensus,” 1967 –

via The Coming Civil War: Producers Vs. Parasites – The Philadelphia Bulletin.

Politicians need to get out of the way of the producers not only of the goods and services, but of the ideas and goals.  It seems to me that this was the message of the 2010 elections.


About Gil Jones

CPA/Attorney/Judge by training and trade. Hobby nut at heart with BMW m/c, computers, ham radio, kayak fishing, photography, hiking and, starting in 2010 some semi-serious running and bicycling (road and mountain bikes). Retired after 16 years on a Texas District Court bench and since 2013 have been mediating cases. I am a Credentialed Distinguished mediator (TMCA).
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One Response to Thanks … for the stim-u-lus … Oh, well, it was swell while it lasted

  1. Gil Jones says:

    A good friend who is a serious thinker emailed me the following:

    Now, I am really getting worried. Many people are discussing the improvements expected after the election but I perceive both parties as parts of the problem. Perhaps it is time for a serious third party effort.

    To which I replied:

    There is much about which to worry. Parties are a problem that was perceived by the founding fathers. However, we have them and always will, and “we the people” must learn to reign them in.
    I think the Tea “Party” as a non-party has the greatest opportunity to do that. A third party effort would only perpetuate tax and spend democrats for 20 years while it tried to get up to speed, while the Tea Party has already demonstrated what it can do outside of being a party itself. I’m hopeful there.

    And I am hopeful of the possibilities of the TP continuing as a genuine grassroots, conservative, “we believe in America” movement and pray that it never tries to become a political party, as such.

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