Posted by
skep41 on Thursday, November 13, 2008 3:50:59 PM

In
the beginning the French Revolution was a reaction to a fiscal crisis.
The King called a special session of the legislature (a
really special
session, the Estates General hadn't met in over a century) to raise
taxes to cover a deficit that was about to consume the entire
government. The
Ancien Regime ran
at a dead loss. Pensioners, parasitic aristocrats, a growing and
cancerous bureaucracy, huge interest payments on existing debt and the
degenerate luxury of the royal court, all fixed expenses that could not
be cut, were outstripping the expected revenue to the point where
people who were looking at the numbers rationally were becoming very
alarmed.
So the legislature came together with the word 'change'
on every lip. But this wasn't a legislative problem. The harvest had
failed and the price of bread was ruinous to the average person. Taxes
and overregulation were strangling business. The powerful hereditary
class of aristocrats had contempt for business and the vulgar
nouveau riche who
were making large amounts of money in the private sector. They moved to
reign in and confiscate the obscene excess wealth of these upstarts,
depressing the economy and inhibiting new enterprises. The France of
Louis XVI wasn't anywhere near as robust and wealthy as the France of
Louis XIV but the fixed outlays were much bigger. What was the result?
Chaos and anarchy, followed by a one-man dictatorship.
Here we
are two centuries later. Once again beset by immovable 'fixed costs'.
The interest groups, local state and national who run the government
look on any cut
in the rate of growth
as an assault on their human rights and the timid cronies they've
maneuvered into positions of power are far more likely to resort to
robbing the public than they are to anger their sponsors and allies.
After all, everybody, from the poorest to the richest gets some kind of
a subsidy.
If you're poor there are myriad agencies and benefits
that you can access. Food Stamps, Medicaid, Housing subsidies, Earned
Income Tax Credit, the list is endless. If you're middle class your
children can attend formerly out-of-reach universities run by the
beneficent state. Vast bureaucracies and agencies sprawl across the
landscape staffed with the middle class in their millions. These folks
bask in the knowledge that they have lifetime jobs with a nice fat
retirement check awaiting them at fifty-five so they can hop in the
Winnebago and drive aimlessly around on the Interstates annoying the
children who moved thousands of miles away to get away from their
parents.
The rich have become adept at paying their legislators
to write subsidies into the giant omnibus budget bills that have become
so popular wherever lawmakers meet to 'craft' a budget. Most
legislators and their cronies are as moderate in their demands on the
public purse as those presented to the trembling and unarmed Romans by
the King of the Visigoths as he stood outside their gates with an army
of warlike barbarians. The wrathful and 'entitled' politicians now
stand
inside the gates backed
by a swelling army of Senior Citizens who expect their every whim to be
catered to instantly, an education bureaucracy that swells like a pig's
bladder, farmers wanting bigger payoffs, unions wanting cash to bail
out the enterprises they've bankrupted with their unreasonable demands
and every variety of idealist and do-gooder all needing more federal
cash than last year to shepherd in the new Nirvana.
The Iron
Rice Bowl. That is the ultimate distillation of socialism. You own your
job as a right. You cant be fired, your pay goes up because its
increases are automatically written into an agreement pegged to the
'cost of living'. Health care is a right. Being able to retire and
collect a pension that allows you to live comfortably is a right. High
real estate prices and bogus mortgages that you never have to pay off
are a right. You have a right to cheap food and cheap energy. Smooth
roads and adequate police and fire protection. The right to attend
university if you can spell your name on the entry form. We've all got
lots of expensive rights.
Meanwhile, the idealists have launched
on a crusade to fix the weather. Even though global temperatures have
been declining for more than a decade and there is absolutely
no empirical
data linking carbon dioxide with climate change the new crowd has
already announced its enthusiastic commitment to the most expensive and
inefficient technologies to generate electricity and their enthusiastic
opposition to any form of energy that involves fire or radiation.
Promethius was tortured by the Gods for giving mankind the gift of
fire, now the Democrats are giving that earth-destroying present back
with a sneer of contempt written on their New Age visages. The
crippling increase in electric bills will be passed on to the herd
either in higher rates or higher taxes to subsidize this idiocy. The
New Jacobins have also hatched a scheme called 'Cap and Trade' which is
like a game of Three Card Monty where businesses are charged taxes for
any carbon or anything else that they emit into the atmosphere.
The
right to own a private automobile, erroneously taken for granted in the
minds of the moronic Voters For Change, is an illusion that will be
revealed for the stupidity that it is when the Weather Police get
rolling and cripple the oil companies. Soon GM will be like Uruguay
Airlines under the socialist government there in the 1960's; tens of
thousands of employees but not a single airplane. The government
subsidized auto workers will be sitting in their idle auto plants
collecting full wages and bennies from the hand of the taxpayer.
Like
France in 1789 the problem is not how the system is being run or which
faction is running the system, its the unsustainablity of the entire
enterprise. Blue State governments and large cities, all run on a
one-party basis by Democrats and dominated by the rapacious Public
Employee Unions, have now reached bankruptcy. So has the UAW-destroyed
automobile industry. Forcing the banks to make loans to welfare cases,
cronies and seedy deadbeat speculators has destroyed the banking
system. The final
coup de gras
was the ocean of computer-generated cash poured into the credit system
to smoothe over the wreckage of sound business principles and ensure de
facto government control of the financial system-- the condition that
caused the crash in the first place.
But the biggest
beneficiaries of the funny-money loans were the middle class who moved
into overpriced six thousand square foot clapboard shacks and imagined
they had a million dollars worth of equity after two years of ownership
which would allow them to endlessly 'refinance' every time they maxed
out their credit cards. Thats the greatest thing about all this
government intervention...everybody wins! Sniveling about trivia like
sound business practices and free trade or even esoterica like 'free
speech' or 'property rights' is for the few remaining conservative
crackpots. Rejecting the flaccid Keynsianism of the beady-eyed Bushites
or the outright Marxism of the incoming pack of geniuses puts one on
the outskirts of society with the Ron Paulians and other political
outcasts. The system is seen as immutably rock-solid and permanent by
the vast majority, who are upset that there has been a temporary
downturn but look to the intervening hand of the state to set things
right.
Its not going to happen. An economist named Dougherty
from Chapman University made a very credible case on the radio
yesterday for a $1.5
trillion deficit
for this fiscal year just based on the things that have been
implemented already or are being proposed for the lame-duck session of
Congress that will usher in The New Age Of Change. He's living in a
dream world if he thinks its going to be that low. If the Dems arent
going to let the UAW take the hit for ruining the auto industry, or
Fannie and Freddie for ruining the banking industry and tanking real
estate prices are they going to let their beloved Public Employee
Unions pay for the state and local governments that have been brought
low by their greedy rapacity? Will they let California and New York
default on their bonds? Joe The Plumber defaulting on his mortgage,
credit card and car payments, his unemployed kids throwing up their
hands and walking away from $200,000 worth of unpayable student loan
debt is one thing, the State Of California walking away from the
worthless paper the voters have been authorizing is quite another.
Actually, they're the same thing. The
Perestroika
that Gorbachev has been urging on Obama has arrived already. Just like
it did in the Good Old Soviet Union-- which most of the people
surrounding Obama supported over Reagan before they switched their
admiration over to the Islamonazis.
If California bonds are
worthless that means all bonds are worthless unless the Feds buy them
with more computer cash. That means that low-interest Federal bonds are
effectively worthless as is the US Dollar. That wipes out the reserves
and investments of every other country on earth. The statists now in
charge of the planet do not have the intellectual wherewithal or the
philosophical underpinning to deal with this. But they'll be too busy
implementing the Law Of The Sea Treaty and the Kyoto Accords to worry
about an economic meltdown until its too late. Its already too late.
The dinosaurs are arguing about how many electric fans to set up to
fend off the approaching asteroid and whether turning on so many fans
will cause Global Warming.
On his deathbed Louis the XV was heard to mutter,
"Apres moi, le deluge." Most
thought he was referring to his idiot son who was about to become king
in his place, and that was certainly part of it, but he was looking at
the oncoming crackup and thanking God for taking him before the flood
hit. As the poet William S Burroughs said, "I dont want to be around
when this sh!thouse blows up!" Burroughs had the good sense to check
out a few years ago, probably defaulting on huge debts to heroin
dealers and sundry other tradesmen and leaving the rest of us on the
bare surface of the Earth contemplating the media's idiot son about to
be coronated and watching with trembling fear the expanding shadow of
the oncoming meteorite.