We now witnessed 40 years of the Great Society, so an audit would not be unreasonable. The "unconditional" War On Poverty has turned into one of the greatest frauds of all time. Poverty has not been eradicated, but billions of dollars have been funneled into the friends and families of the bureaucrats. Food stamps are the unofficial currency of Puerto Rico, and WIC stores are now springing up everywhere in the US. Fannie Mae, Ginnie Mae, and the FHA are a total disaster. The Federal Reserve is totally committed to pumping up the equity markets to avoid the possibility of a bailout of the pension system. Alan Greenspan recently testified that he has real problems with the liabilities of the GSE's.Government Sponsored Enterprises include Fannie Mae, Ginnie Mae, Sallie Mae, etc. The government has implemented the Full Employment Act, and has turned the US into a service worker paradise. The premise that the government can create jobs is true. The problem is that the government cannot create productive jobs. What would Congress and it's entourage of lobbyists know about productive work? We no longer produce goods. It is an economic fact that the production of goods creates wealth through operating leverage. Service industries are inherently inflationary, because there is an equal amount of labor required for every incremental unit of service provided. There are no wealthy service economies. The big problem is tax revenue. How can low paying service jobs generate the taxes required to pay for all the social services they use? We witness the absurd spectacle of service workers receiving social services from government workers who are paid three to five times more than the services workers are paid! Will somebody please explain this logically? Government workers produce nothing except more government workers! We are trapped in a circle with no exit.
The Social Security pyramid scheme has hit the wall. The pyramid is disappearing. There will soon be more people collecting benefits than there are people working. The Social Security Fund never existed. The trust fund fiction was created by FDR to defeat the program's critics. The one variable that might give the system more time, is the fact that you have no legal right to Social Security. Keynesian economics, and socialist central planning, have trapped the Western economies into a slow death. The true US government debt has been estimated to be 82 trillion dollars. Should this socialist delusion continue, we will have to start computing the National Debt in googols. Googols represent very large numbers. Naturally, the government will announce the conversion to googols as a major cost saving measure. All those very big numbers will be reduced to a few googols. The government will save on forms, and computer data storage space. Once the politicians find out that less trees are being cut down as a result of the conversion to googols, the new numbers base will be heralded as a brilliant environmental decision. We are talking about Nobel prizes, and KBE's from the Queen of England! This could warrant the establishment of a new government agency! The government will claim that the new agency will actually be free because it will be funded with the savings from the conversion to googols. It may run a little over budget, but no plan is perfect. Of course, how would one know if they were over budget using googols?
The obvious question is where do we go from here? Dick Stoken, a veteran commodity trader and a very astute observer of the markets and the economy, made an interesting argument in his first book, Cycles (1978). Stoken said that all modern societies have washed away their debts with inflation (debasement of the currency). This would seem like the obvious move for the socialist governments at this time. As Shakespeare said, "Ay, there's the rub". We have to deal with the probability that the past will extrapolate in a linear way into the future. We may be confronted with a discontinous event, which defines a major change in trend. We are witnessing the largest inter generational wealth transfer scheme in history. We are trying to shift our financial obligations onto the next group of workers. Do we really believe that these new workers are this stupid? Why should they be impoverished by paying their elder's bills?The most bizarre part is the fact that the most of elders will dead when these younger workers get the bill for this lunacy! Will they support a government that has enslaved them financially? Would you? Should you wish to revert to legalisms about their duties, The Declaration of Independence will help you to understand their inalienable rights.
When will Atlas Shrug? Atlas has not only shrugged, he has sold his real estate at the top, and is now ensconced in Thailand, China, India, the Baltic States, and anywhere else that has economic freedom. Corporations are fleeing the US as if there were vampires here. Corporations are aware of the differences in the value systems of different countries, and are acting rationally by leaving the US for environments that are more" producer friendly". We should remember that the American value system was once very producer friendly. Calvin Coolidge was the President from 1923 till 1929. Coolidge said, "After all, the chief business of the American people is business". There is a very serious disease in the US. It is highly contagious, usually fatal, and requires extreme measures to stop its spread. It is the ultimate biological weapon. It slowly destroys entire societies. All of the nation's creative energies are utilized in working the system, whether it be for handicapped privileges, or for increases in the particular entitlement they are currently receiving. Slowly, the economy has changed from production to parasitism. Collectivism makes Ebola look like a Christmas present.
Free Markets For Free Men!
Author Wayne N. Krautkramer is a former Fortune 100 financial manager with 30 years experience in commodities and stocks.
The Social Security pyramid scheme has hit the wall. The pyramid is disappearing. There will soon be more people collecting benefits than there are people working. The Social Security Fund never existed. The trust fund fiction was created by FDR to defeat the program's critics. The one variable that might give the system more time, is the fact that you have no legal right to Social Security. Keynesian economics, and socialist central planning, have trapped the Western economies into a slow death. The true US government debt has been estimated to be 82 trillion dollars. Should this socialist delusion continue, we will have to start computing the National Debt in googols. Googols represent very large numbers. Naturally, the government will announce the conversion to googols as a major cost saving measure. All those very big numbers will be reduced to a few googols. The government will save on forms, and computer data storage space. Once the politicians find out that less trees are being cut down as a result of the conversion to googols, the new numbers base will be heralded as a brilliant environmental decision. We are talking about Nobel prizes, and KBE's from the Queen of England! This could warrant the establishment of a new government agency! The government will claim that the new agency will actually be free because it will be funded with the savings from the conversion to googols. It may run a little over budget, but no plan is perfect. Of course, how would one know if they were over budget using googols?
The obvious question is where do we go from here? Dick Stoken, a veteran commodity trader and a very astute observer of the markets and the economy, made an interesting argument in his first book, Cycles (1978). Stoken said that all modern societies have washed away their debts with inflation (debasement of the currency). This would seem like the obvious move for the socialist governments at this time. As Shakespeare said, "Ay, there's the rub". We have to deal with the probability that the past will extrapolate in a linear way into the future. We may be confronted with a discontinous event, which defines a major change in trend. We are witnessing the largest inter generational wealth transfer scheme in history. We are trying to shift our financial obligations onto the next group of workers. Do we really believe that these new workers are this stupid? Why should they be impoverished by paying their elder's bills?The most bizarre part is the fact that the most of elders will dead when these younger workers get the bill for this lunacy! Will they support a government that has enslaved them financially? Would you? Should you wish to revert to legalisms about their duties, The Declaration of Independence will help you to understand their inalienable rights.
When will Atlas Shrug? Atlas has not only shrugged, he has sold his real estate at the top, and is now ensconced in Thailand, China, India, the Baltic States, and anywhere else that has economic freedom. Corporations are fleeing the US as if there were vampires here. Corporations are aware of the differences in the value systems of different countries, and are acting rationally by leaving the US for environments that are more" producer friendly". We should remember that the American value system was once very producer friendly. Calvin Coolidge was the President from 1923 till 1929. Coolidge said, "After all, the chief business of the American people is business". There is a very serious disease in the US. It is highly contagious, usually fatal, and requires extreme measures to stop its spread. It is the ultimate biological weapon. It slowly destroys entire societies. All of the nation's creative energies are utilized in working the system, whether it be for handicapped privileges, or for increases in the particular entitlement they are currently receiving. Slowly, the economy has changed from production to parasitism. Collectivism makes Ebola look like a Christmas present.
Free Markets For Free Men!
Author Wayne N. Krautkramer is a former Fortune 100 financial manager with 30 years experience in commodities and stocks.
