The world has cancer. Much of the world has at least accepted the diagnosis and have begun the painful treatments necessary to survive. They may have waited too long and the steps they are
taking may be too small to prevent the cancer from growing and eventually killing them.
On the other hand, here in the United States we have rejected the diagnosis completely. Imagine someone diagnosed with lung cancer refusing to have surgery or chemo and instead
upping their daily smoking habit from one to four packs of cigarettes a day.
The cancer is out of control government spending, world wide socialism. Europe, through the IMF is being forced to accept reductions in government entitlements and increases in
taxes. They are cutting unemployment benefits, health care and government pensions. The people there, organized by the unions are violently rioting in protest of these cuts.
What is mind boggling about all this is that Europe has had the things the Obama administration says we need to be prosperous for many years and they are collapsing their economies.
They all have socialized health care. They have invested heavily in green energy and made fossil fuels extremely expensive through massive taxes. They have generous
unemployment benefits that stretch out for years. As a result of the powerful union influence they have terrific pension programs that start in some countries as early
as 54 and pay most of your pre retirement salary for the rest of your life. People there work short hours and get months of vacation every year.
So now all of these things they have become addicted to are being taken away and at the same time they are being told to pay more in taxes.
Here we are with a clear looking glass into our future. Instead of heeding the warning and reversing course to avoid the same fate we are accelerating the process
of being more like Europe. It seems that every day a new bill is introduced to create a new entitlement or bailout the latest emergency.
From a USA Today Article
Paychecks from private business shrank to their smallest share of personal income in U.S. history during the first quarter of this year, a USA TODAY analysis of government data finds.
At the same time, government-provided benefits ? from Social Security, unemployment insurance, food stamps and other programs ? rose to a record high during the first three months of 2010.
The trend is not sustainable, says University of Michigan economist Donald Grimes. Reason: The federal government depends on private wages to generate income taxes to pay for its ever-more-expensive programs. Government-generated income is taxed at lower rates or not at all, he says. "This is really important," Grimes says.
What you can see in the graph is this is not the result of a short term problem. There has been a steady decade long decline in private earning couple with a decade long increase
in government pay outs. The pace has only accelerated during the financial crisis and as a result of Obama's policies.
So the world has cancer, a 30 trillion dollar debt cancer between the US and Europe. There are no plans to actually remove the cancer only to slow the pace at which it grows.
To smoke less cigarettes in some places, more here in the US.
We have not truly started to feel the pain of our cancer here in the US because Europe is so sick. The people there with money are looking for a stable place to put it
and right now we are the best of the worst. We are only able to continue spending money we don't have because US Treasuries are still considered safe and people
need somewhere to invest their money. It will not last forever. It is only a matter of time before our debt grows so large that our credit rating drops and the money
stops flowing into treasuries.
History is littered with examples of failed socialist experiments, right and left, Nazi and Communist. Only through fear and violence is order maintained in a socialist
society until it collapses under its own weight. We have thrived for hundreds of years without the violent revolutions seen everywhere else in the world because our system
has been unique. We avoided the cancer of big government for over 100 years because of the limits imposed on the federal government by our constitution. Slowly though the
progressives have subverted and even amended the constitution taking us off the American track and putting us back on the big government European track.
What is unclear to most people is why would we be rapidly implementing a plan that results in the economic collapse of our country? The answer is simple but frightening.
Socialism is about equality. Equality of stuff regardless of effort or results. If you earn $40,000 a year that puts you in the top 7% of all earners in the world.
In the US that puts you right at what we consider to be the poverty line. In order to achieve global equality the US needs to come down to the level of the rest of the world.
The same is true for Germany and the UK. Imagine what America would look like if only 7% of the population had an income above $40,000 a year. People would be forced to
abandon their homes in the suburbs for crowded living in government funded housing projects. More and more the government is taking over people's mortgages and the banks
that own them, taking control over housing. When the money runs out they will have control over where you live and what you earn.
Scan the news and you see the bail outs(takeovers) continue to grow despite our being told we are in a recovery. A new bill was just introduced to provide 165 billion
to bailout troubled pensions. Another gift to the unions. Another stimulus is being crafted labeled as a Job creation and tax loophole fix bill. A stimulus bill
aimed at bailing out unemployment and stealthily raising taxes. The end result is yet again hundreds of billions in new debt. Add to this the doctors fix for Medicare
being introduced that also adds hundreds of billions to our debt.
The end result is our national debt has now exceeded 13 trillion dollars and grown past 90% of GDP. This doesn't take into account the trillions more owed by
state and local governments and the enormous personal debt we all have. Everything around us is an illusion bought with borrowed or imaginary money. Once the first
domino falls in Europe the chain reaction of sovereign debt defaults will spread across the globe eventually reaching us, the largest and last domino to fall. Those of
us who know it is coming will be prepared for what is ahead and must help those who are either unaware or in denial. They will most likely react with panic and
disbelief once the reality of the situation is unavoidable. Greece's discontent will come to America.
The temptation is there to believe it can't happen in America. To believe that we're different somehow. The laws of economics like the laws of physics apply equally
to all nations. This is not about the stock market or taxes on the rich as some would have you believe. Life in America is being fundamentally transformed from
free enterprise and liberty to entitlement and control. Only in America has the choice existed between a leftist big government and small government. In the rest of the world
they have been forced to choose between big government left (Communism) and big government right (fascism). The American right has always stood for limited government, a uniquely
American idea put forth in our constitution. Slowly we have destroyed the very idea of our founding, of limited government and liberty. The 2008 presidential election was the
grand example of the choice between big government, right and left, McCain or Obama. Not since Reagan have we had anyone who believed in limited government and he is nearly
alone as presidents go in the 20th century.
May 24, 2010 - The 10 Planks Today.
May 19, 2010 - The 10 Planks.
May 11, 2010 - Buying Time.
May 3 - Mission Organization.
April 27 - My name is America, and I'm and addict.
April 26 - This time you've been warned.
April 23 - Mutually Assured Economic Destruction
April 22 - The Truth, Does it matter?
April 21 - Name that Mob?
April 20 - Why So Quiet?.
April 19 - The Deadbeat Bubble.
April 16 - Oh no you didn't.
April 15 - The Party of Silence.
April 14 - You've got to be kidding me.
April 13 - Where do we go from here
April 12 - Youth of the Nation
April 9 - Turning the Tables
April 8 - New Age of Discrimination
April 7 - Thank You Kind Stranger
April 6 - The Cost of Compassion
April 5 - Happy Days are Here Again
April 2 - Of Course We Can Do a Better Job
April 1 - The New Normal
March 31 - Take a Deep Breath
March 30 - Metaphors and Blinking Lights