Time to despair? 11

It seems at the moment that a majority of Americans want the Democrats with their socialist agenda and pro-Islam sentiment to rule them, and therefore to change everything that the United States has stood for from the beginning.

If Obama is re-elected, and has his way – which he will if both houses of Congress are given Democratic majorities – what will happen?

Let’s look at the worst plausible scenario.

Most Americans will be poorer. The national debt, vast as it is, will grow even bigger. Unemployment will increase. The value of the dollar will fall as inflation rises. More tens of thousands will be on food stamps (45.8 million are now).

Much private housing will be expropriated. Large numbers of people will be herded into government-supplied accommodation. How warm you may keep your room in winter and how cool in summer will be decided by local government. Car ownership will be discouraged by high gas prices, lack of parking facilities, and pressure on town-dwellers to use bicycles and commuters to use public transport. The countryside will be returned to wilderness. Roads will be destroyed. (All this in line with Agenda 21. Put “Agenda 21” in our search slot for corroboration.)

“Free Speech” will be severely restricted and so cease to be free. This is happening already with the Obama administration trying to stop criticism of Islam.

Your guns will be confiscated.

Sharia law will be applied in courts across the land and take precedence over the Constitution.

What you may eat in restaurants, schools and hospitals, and what food stores may sell, will be decided by Michelle Obama (assisted by New York’s Mayor Bloomberg). (See our post The orderers, June 5, 2012.)

Obamacare will prevail. The treatment you may have or be refused when you are ill will be decided by bureaucrats. If you are old and ill your survival will be arbitrated by a death-panel, whatever euphemism of a name it goes under. You have only to look at the British National Health Service to see the horrid future of health care in America. (Put “death-panels” and “NHS” into our search slot to find the grisly details.)

The Environmental Protection Agency (EPA) will be turned into the equivalent of the KGB. It is almost there now.

There will be no more free elections.

China, Russia, North Korea, Pakistan, and Iran will all become more powerful as America is deliberately weakened militarily. What will that mean? Let your imaginations soar.

World government by that collection of corrupt and savage despotisms, the United Nations, will be established with the enthusiastic help of the American government.

Innovation will cease as freedom goes. The great experiment in freedom that was America, its prosperity and its power, will be over. There will be no turning back.

And all that is just first-thought – but bitterly informed – prediction.

Readers’ gloomy predictions are invited. And expressions of despair.

*

The Republican Party is allowing this to happen. It seems to have lost the plot. The last election was the turning point when it insanely put up John McCain as it’s presidential candidate. With such a feeble alternative to a candidate who offered the electorate a chance to feel good by voting for him chiefly because he was black (a thoroughly racist reason), the ideology of collectivism triumphed. Now that so many people have been reduced to dependence on the state is it likely they will vote away their free ride through life?

Of course, socialism does not work. The system will collapse as it always has because it must. And the country will come to ruin, like Greece. But apparently more than half the voters of America are unaware of this terrifying fact, or else they don’t give a damn.

Why aren’t the Republicans telling the voters in the strongest terms that this is what will happen?

It’s a real question.  We’d like to know why.

What is to be done? 0

John Hinderaker of Power Line quotes Lawrence Kadish (writing in the Wall Street Journal, October 12):

It is the interest on the national debt that makes our future unstable. The exploding size of that burden suggests that, short of devaluing the dollar and taking a large bite out of the middle class through inflation and taxation, there is no way to ever pay down that bill. …

In stark but simple terms, unless Americans are made aware of this financial crisis and demand accountability, the very fabric of our society will be destroyed. Interest rates and interest costs will soar and government revenues will be devoured by interest on the national debt. Eventually, most of what we spend on Social Security, Medicare, education, national defense and much more may have to come from new borrowing, if such funding can be obtained. Left unchecked, this destructive deficit-debt cycle will leave the White House and Congress with either having to default on the national debt or instruct the Treasury to run the printing presses into a policy of hyperinflation.

It is against this background that Washington is now debating whether to create social programs it can’t afford.

He comments on this – and we agree:

It is hard to overestimate the danger to which the fecklessness of our current leaders in Washington exposes the nation.

But if  Americans are ‘made aware’ of the great danger they are in – and many of them are aware, as witness the tea parties and the 9/12 protest – what can and should they do about it? ‘Demanding accountability’ would not be enough, even if they got it.

The greatest of lies about government 1

Vasko Kohimayer writes in Front Page Magazine (an article well worth reading in its entirety):

Having incurred more than $65 trillion in obligations of various kinds, the federal government finds itself in an insurmountable fiscal hole. To give a sense of size, this amount is more than the annual economic output of the whole world and four times America’s Gross Domestic Product. It would be impossible to manage this even if our leaders suddenly came to their senses and began to behave responsibly. There is little chance of that, however. The larger our debt, the more eager they are to spend more.

Despite our leaders’ efforts to conceal the level of indebtedness, its reality cannot be evaded. The steady weakening of the dollar is one evidence of that. In recent months financial experts have even been discussing the unthinkable: The possibility that the American government may default… The deficit will end up being close to $2 trillion at the end of this fiscal year… The markets are growing increasingly concerned about the possibility of the United States failing to meet its obligations.

The question is how did America get into this position. What brought this country – once a citadel of financial stability – to such dire straits? The answer will become apparent when we look at the composition of America’s debt burden.

The federal government’s obligations consist of two main components. The smaller of the two is the one that is reported on more often. It is referred to as “public debt,” or “national debt,” or “sovereign debt.” This is the debt that the government has incurred as a consequence of its budget deficits over the years. It currently stands at $11.6 trillion, which is about 85 percent of GDP.

The public debt, however, only represents a relatively small portion of the government’s total debt. The rest is primarily made up of obligation connected with three large entitlement programs – Medicare, Social Security and Medicaid. It is estimated that together their combined claims amount to roughly $55 trillion more than what the government will collect in designated taxes. At this point Medicare and Social security do not yet represent a net budgetary expense, because revenues (FICA taxes) exceed what is paid being out in benefits. To put it differently, these programs are currently running surpluses; this situation, however, will not last indefinitely. The social security surplus will end around 2018. The negative gap will then widen rapidly with each successive year… The $55 trillion question is: How will the government raise the cash once the surpluses come to an end?

There are two ways in which this can be done: by raising taxes or by borrowing. Neither seems like a good option under the circumstances. Taxes are already perceived to be high; bringing them much higher would be politically unpopular if not impossible. Furthermore, raising taxes would hamper growth, which would in turn decrease the tax base and thus defeat the purpose of the increase in the first place. As far as borrowing is concerned, it is almost certain that investors would refuse to finance additional debt given their concerns about its present levels. With no place to go, it is likely the federal government will do what governments usually do when caught in this situation: it will “meet” its obligations by printing money.

This, of course, is an easy way out, but it debases the currency and produces inflation. And since America’s huge debt load is far beyond the government’s ability to pay off with honest money, the level of inflation is likely going to be very high. It would actually appear that the government has already embarked on this path. There are even those who fear that the United States may eventually experience hyperinflation… The soaring inflation that will follow will have a devastating effect on the already fragile financial system and will inevitably lead to economic breakdown. This will in turn set off centrifugal forces in a troubled and divided society.

America’s impending travails are thus ultimately tied to fiscal mismanagement, particularly in the area of entitlements. It is as ironic as it is instructive that entitlements seek to confer the kinds of benefits the Founding Fathers thought the federal government should have no business of pursing. It was with this in mind that they drafted a constitution that sought to prevent the federal government from getting involved in those areas. They made it very clear that federal functions were to be few and  limited, confined primarily to protecting the life, liberty and property of Americans.

Ensuring people’s well-being through the provision of retirement income, healthcare and other such goods was not to be the government’s job.

It is to our detriment that we have betrayed both our founding principles and the Constitution. We have done this because we have fallen for that greatest of lies, which is that government is capable of providing for citizens’ material and social needs

Brainwashed by years of public education, many believe that ensuring the population’s material welfare is precisely what good government is all about. But no government has ever been able to pull this off

Those naive enough to rely on the government’s “guarantee” of a “dignified” retirement are bound to be bitterly disappointed… But if the only thing the government did was to fail to deliver on its promises, the situation would not be so dire. Unfortunately, it also did something else in the process – it has bankrupted this nation by saddling it with debts and obligations we cannot fulfill. This outcome is unsurprising. The old maxim is as valid now as it has always been. Government does not solve problems; it only makes them worse. Given the ambitious scope of entitlements, it was only to be expected that federal involvement would eventually create difficulties on an insurmountable scale…

Posted under Commentary, Economics, government, Health, Socialism, United States by Jillian Becker on Monday, August 24, 2009

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