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Economy

Making America insolvent

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Making America insolvent

The stock market is setting records, unemployment is relatively low, inflation is low, and America’s economy is churning along. Lots of reasons to be happy if you’re rich. But we’ve got a $20 trillion Sword of Damocles hanging over our collective heads.

America’s GDP is somewhere north of $18.5 trillion, and increased over the 2nd quarter of 2017 at an annual rate of 3.0 percent (over the 1.2 percent of the first quarter), while the PCE price index went up by only 0.3 percent.

Though it’s encouraging to see the economy growing at a reasonable rate, it’s very troubling to see the federal government’s debt exceeding the nation’s GDP. In business, nobody ever wants to owe more than they produce, unless those debts are tied to solid and appreciating assets.

Of course, the value of the United States’ real estate far exceeds the national debt, right? Well, actually, no. The value of all land (in 2009 dollars) was estimated at $23 trillion by the Bureau of Economic Analysis, in a 2015 report.

Essentially, the federal government has mortgaged all the land in the country, including Washington D.C. and every bit of property the federal government owns (about $1.8 trillion according to the report).

Your home may have a mortgage, but the government has also mortgaged your land, and every dollar produced by every company in America is mortgaged and attached by the federal debt.

In business, we call this situation “insolvency.” Companies that believe they can grow their way out of insolvency have to sit in front a room full of creditors and bankers and explain how this works. Frequently, the bankers don’t buy it.

But the U.S. government is too big to fail, and therefore China, Saudi Arabia and other debt holders aren’t about to call Congress on the carpet to explain how we get out of insolvency. That’s the job of the electorate–we’re the ones being mortgaged and co-signed on the debt our government has piled up.

It is unconscionable and immoral for our federal government to continue to lead us into insolvency. If you look at history, when powerful nations embark down a road of insolvency, ultimately it leads to war.

The U.S. has no shortage of natural resources. We are the most productive nation on earth in food, energy, and innovation. Trump and Bannon’s answer to the national debt is to grow our way out of it by making better trade agreements. That means selling America’s resources at a higher price to foreign buyers. If it only worked that way in reality, if only “America, incorporated” could simply raise the price of food, natural gas, oil, and intellectual property, we’d all be drinking wine and smelling roses.

But it doesn’t work that way, does it? Corporations in America have foreign capital investments, and many are owned and headquartered offshore. Much of America’s enormous productive capacity is pledged to foreign owners profit expectations. That’s how a free market works.

The only way to force companies to fall in line with a nationalist economic policy is to…well, force them. In historical political science-y and economic terms, that’s called “fascism,” where the government sets the economic priorities for each market and companies must comply or be nationalized.

A nationalized economy does not suit America, where liberty and opportunity are valued above cultural homogeneity. Where the left would impose that hegemony over American social values, our federal government and the economic nationalists led by Steve Bannon would impose it on our corporate values. Neither solution can work in the U.S.

In the end, either foreign capitalists will continue to draw profits out of America, in an unending spiral of unpayable mortgages until someone calls a debt (provoking war); or we will impose unacceptable barriers to free trade, which will cause consumer prices to skyrocket, in a cycle of punitive tariffs and restrictive trade agreements. This will eventually lead some nation that the U.S. forces an ultimatum of forgiving defaulted debt or resource starvation to begin a war.

It might be an economic war at first, but such things usually lead to a shooting war. This is how Japan ended up in World War II. It’s how North Korea might react if all other options are removed. It’s how China will react as they continue to build their power and military.

By mortgaging America, our federal government is placing our nation at odds with practically every country in the world. Even Canada and Mexico, faced with renegotiating NAFTA, will side against an America with $30 trillion in federal debt and $25 trillion in GDP.

Our federal debt more than doubled since 2007. In another 10 years, it’s entirely possible we will see this scenario in our faces, especially if Trump remains in office 2024.

The federal government must, for the sake of our nation and our liberty, stop this disastrous debt spending. Insolvency is no way to run a business, or a government.

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Culture and Religion

The complete fraud that is socialism

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The complete fraud that is socialism

Once again we are witness to the age-old scam of socialism with Leftists making promises to attain power that can never be fulfilled.

Long before Aleksandr Solzhenitsyn’s Gulag Archipelago exposed the systematic oppression, torture, incarceration and deliberate mass murder that are the hallmarks of socialistic slavery. James A. Michener documented the 1956 Hungarian uprising against communism in his book ‘The Bridge at Andau’. While both are great literary works, ‘The Bridge at Andau’ laid bare the complete fraud that is the collectivist ideologies in creating a ‘Heaven on Earth’ or ‘worker’s paradise’ that never comes to fruition.

The selling of socialistic slavery to a new generation tends to follow a certain type of ‘progress’. Promises are made for all kinds of largess ranging from Free Healthcare, Free Housing, Free College, Free food to even Free income. All paid for with other people’s money. Never mind that It’s impossible to fulfill all of these wondrous asseverations. Appearances must be made to at least begin the process, so the ever-present task of wealth redistribution begins at the point of a gun.

This is also why the Socialist-Left obsesses over gun confiscation and the suppression of free speech. It is imperative for the Leftists to disarm the people since they generally object to having their property stolen from them. However, we are getting ahead of ourselves, this is to document how this exploitation of the people has ‘progressed’ in other collectivist enclaves to better understand how this crime against the people is perpetrated.

Why do collectivist regimes always require secret police apparatus and the suppression of Liberty?

This question was detailed in The Bridge at Andau in the chapters on the ‘AVO man’. In which he discusses the secret police organisation of the Hungarian Communists, the AVO (Allamvedelmi Osztaly). He bluntly asked and answered the question:

Why must communism depend on such dregs of society?

No matter on what elevated plane communism begins its program of total dictatorship. it sooner or later runs into such economic and social problems that some strong-arm force is required to keep the civil population under control.

As is the case now as it was then, a nation’s Socialist-Left will promise just about anything to attain power over the people:

When communism is wooing the workers in Csepel, all kinds of exaggerated promises are made if they seem likely to awaken men’s aspirations and their cupidity. These promises are couched in such simple terms and such effective symbols that they become immediate goals of the revolution.

Review briefly what communist agitators had once promised the Hungarians who appear in this book: consumer goods such as they had never known before, increased wages. increased social benefits, shorter hours of work, improved education for everyone, a greater social freedom, and a government directly responsible to the working classes. Under communism such promises were never even remotely capable of attainment.

[Our Emphasis]
If all of that sounds eerily familiar, it’s because that’s part of a very old song and dance that has deceived many a generation into enslaving themselves under socialism. Consider this recent story from the Associated Press:

Democrats lurch left on top policies as 2020 primary begins

NEW YORK (AP) — Democratic presidential contender Julian Castro launched his campaign by pledging support for “Medicare for All,” free universal preschool, a large public investment in renewable energy and two years of free college for all Americans.
….

New Jersey Sen. Cory Booker, who is expected to launch his presidential campaign soon, has sponsored legislation to create a federal jobs guarantee program in several communities across America.

The pilot program… could ultimately transform the U.S. labor market by providing well-paid government employment with benefits for anyone who wants it.

[Our Emphasis]

As Margaret Thatcher so aptly surmised, eventually they will run out of other people’s money. In our case in the states, that is already the situation given the enormous debt and unfunded liabilities reaching into the stratosphere of trillions of dollars. Of course, this hasn’t deterred committed collectivists such as Democratic mayor Bill de Blasio who recently stated that ‘There’s plenty of money in the world… It’s just in the wrong hands!’ Never mind that it is morally wrong to steal the property of others or that once a society turns down the dead-end of socialism there will always be more people wanting more money from those who have it.

Wealth redistribution scams will always wreck the economy. A socialist regime that nationalizes the economy can never function better than one of economic Liberty. Soon enough everything breaks down, the people see through the lies and the government has to start breaking heads. Thus it is imperative that they have previously confiscated the people’s guns and made it illegal to defend themselves.

The Takeaway

Socialistic schemes always run contrary to basic human nature. Rewarding someone for not working will always result in less work. Conversely, punishing someone for working will also result in less work.

This basic logic of human nature seems to be lost on Leftists. But perhaps it is not. They have to know their schemes have never and will never work. And yet they still try to impose them on everyone else. Perhaps they know of the epic fraud they are continually perpetrating on society, but they don’t care. That will be the subject of our next installment.


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Economy

Local communities giving support to border agents during shutdown

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Local communities giving support to border agents during shutdown

One of the most prominent stories the media has been pushing since the beginning of the partial government shutdown is that services are being hampered by federal employees calling in sick in large numbers. They are not getting paid (though they’ll receive back pay when the shutdown ends), so whether they call in sick or not makes no difference to their bottom line. The TSA in particular has been highlighted as long wait times at airports hamper travelers.

There’s one government agency affected by the shutdown that doesn’t appear to be having the same problem, and local residents and businesses are being partially credited for making this possible. Border patrol agents aren’t calling in sick or taking leave any more than usual, according to a report by Anna Giaritelli at Washington Examiner:

Locals help border agents survive the shutdown with free meals, zero-interest loans

https://www.washingtonexaminer.com/news/locals-help-border-agents-survive-the-shutdown-with-free-meals-zero-interest-loans“Although I don’t have official agency numbers, it is my understanding that call-outs or sick leave is at or near the same levels as in similar times in years past,” National Border Patrol Council President Brandon Judd wrote in an email Monday. “We certainly aren’t experiencing the same level of call-outs as TSA. As far as I’m aware, and again that is without official numbers, we have the same workforce reporting for duty under the shutdown as we regularly do under normal circumstances.”

The kindness and respect residents and businesses are giving to border patrol agents isn’t just a sign of support for those who keep the border secure. It’s a testament to the concept of philanthropy being more powerful than government. It’s often said that government does the job that people won’t. In reality, it’s the people who do the jobs the government can’t. Moreover, it’s the people who are able to do these jobs better than the government in most situations.

While I would never condone the use of civilians for our military defense or even border patrol, there’s one very clear example of how private solutions are beating government solutions, and oddly enough it comes from far-left San Francisco. Unlike most airports in the country, the lines at San Francisco International Airport are no longer or slower than before the government shutdown. This is because their security agents are not federal employees. TSA contracts with Covenant Airport Security. Their agents are getting paid through the shutdown.

My Take

As the government shutdown drags on, we should all be thankful that border patrol continues to do their job and that local communities are pitching in to keep these brave men and women taken care of until DC gets its act together.


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Economy

We need an intervention to break Washington’s spending addiction

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We need an intervention to break Washingtons spending addiction

As the manufactured government shutdown created by the reality TV president continues, something other than Trump’s DACA sellout for his metaphorical border wall is being missed by the public.

Lost in this latest episode of “The Apprentice: White House Edition” is the reality that the shutdown occurred because Republicans and Democrats have been unable to agree on how to spend money they don’t have to feed their spending addiction responsible for our record-breaking budget deficits.

Calling Washington’s spending an addiction is not hyperbole. Drug addiction, for example, is a disease that affects a person’s brain and behavior to the point that he/she is unable to resist the urge to find the next high no matter how much harm it may cause to themselves or others.

Likewise, Washington’s spending addiction is a political disease affecting their brains and behavior — even a “very good brain” like Trump’s — to the point that our representatives are unable to resist the urge to find the next spending high.

Short of admitting they need help, addicts will try to hide their addiction in many ways, including blaming others for their problem and scheming for ways to get more money for their addiction, which is exactly where we find Washington today.

Earlier this month, Trump’s favorite Speaker of the House, Nancy Pelosi, passed a set of rules that automatically abolished the debt ceiling, thus putting out of control spending on cruise control. By eliminating the need for a vote on the matter, the impact of this bankruptcy-inducing scheme remains hidden because no one is forced to go on-the-record.

By the way, Trump supports permanently ending the debt ceiling and has already worked with Chuck Schumer and Nancy Pelosi to get it done.

Republicans in the Senate — including so-called conservatives like Mike Lee and Rand Paul — are also looking for ways to feed Washington’s spending addiction. Last week they were joined by Joni Ernst as sponsors of the “Government Shutdown Prevention Act of 2019.” This money-spending scheme would permanently eliminate shutdowns by guaranteeing endless financing by the government to keep it open, even if Congress fails to pass a spending bill.

According to Sen. Lee, “Shutdowns create instability and unpredictability not only in government, but also many families and businesses that interact with the federal government.”

Do you know what else creates instability and unpredictability? Explosive deficit spending and bankrupting America. Of course, Washington would have to admit they have a spending problem to understand this fact, which isn’t likely to happen, so eliminating shutdowns allows them to hide their addiction.

According to Spender’s Anonymous, the first step to recovery is admitting that you’re powerless over spending and money and that your life has become unmanageable.

Powerless over spending and money? Life has become unmanageable? Sounds like Congress to me, and it sounds like it’s time for America to hold an intervention … perhaps in 2020.

Originally posted on StridentConservative.com.

 


David Leach is the owner of The Strident Conservative. His daily radio commentary is distributed by the Salem Radio Network and is heard on stations across America.

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