I was working on a project that had me staying at my brother’s place in Canyon Country north of LA back in the mid 90’s. One morning I came out to my truck to get in and head off to a jobsite. Just as I reached the truck it started wobbling. It was an older truck with worn out springs and it looked to me like one of the neighborhood kids was perhaps crouched on the other side of the truck shaking it as a joke. I had seen and talked to a few of the kids around that time of morning as they waited for a school bus so I assumed that was what it was. Before I could say anything the earth under my feet dropped away. Now it felt like it dropped a long way but as I later read it dropped about ½”. It wasn’t a particularly large earthquake, about a 4.6. It caused me to half step, half stumble a step back. Before you assume a drop of ½” is insignificant, particularly you folks on the west coast, you have to understand, where I come from the earth doesn’t move. It doesn’t drop. It stays right where you left it.
Of course I knew about earthquakes. I had read about them, seen them on TV, etc. That’s all great. Until the earth actually moves beneath your feet you can’t really internalize what it means. For those who grew up on the west coast this may seem like a pedestrian discussion because, of course, the earth moves.
When you grow up in a land without earthquakes and then experience one, the world changes forever. The way you see the world changes forever. The change doesn’t have to be a massive come to Jesus moment but you will never see things exactly the same way again.
For me, the earth now moves, sometimes.
It is a paradigm shift.
I have experienced several similar or even slightly larger earthquakes since that time. None stand out in my memory the way that one does.
Some people have the misfortune of having their first earthquake be their last.
Financially, economically, and as a result socially, the world is about to move. The tremblers are already happening. Like I did with the truck, the establishment is poised to blame the “youngsters” for the shaking. The Tea Partiers did it. And they will carry that line of blame for as long as people are willing to believe it.
Never in the history of the world has such an utterly, morally devoid people held such sway over the lives of so many.
The entire world has become a Keynesian debt driven economy.
Banana Republics, Jungle Thugocracies, Socialist Democracies, Communist Plutocracies and worst of all Constitutional Republics have all bought into the Keynesian claptrap notions that it is somehow possible to permanently stimulate prosperity by stealing/borrowing from your children while simultaneously selling the idea that nobody will ever have to pay back the debt.
Knowing those in power buy into this religion should shake the world for you.
Many have begun to feel the trembling and are not yet sure what it means. Some of the “Keynesians” who knew all along they were selling a fraud are now looking for bolt holes. Witness the recent Drudge headline noting congressional net worth is up something like 3000% over the last decade or so. They are stocking up at the expense of the poor slobs who believed them. Don’t kid yourself, this crosses party lines.
Some in congress still don’t get it. Not all of the folks who just voted for the debt ceiling increase did so for purely selfish motives. Instead like crack addicts, or their enablers, they were able to rationalize just one more high. It was easier than having the fight now. As any close relative of a drug addict can tell you, it is a bad decision that is soooo easy to make. It will always be so until it all crashes down. One more hit, one more bottle, one more pipe.
But an earthquake is coming.
For some of those in Washington, and its power circles, this is merely a stalling action. They have stolen considerable fortunes and now they are trying to consolidate their gains while stiff arming the nation.
For others, too new or incompetent to have cemented their fortunes, it is about propping things up long enough to “get theirs.”
There are true believers. For them the shock will be more than they can take. By this I mean no matter how bad, or how obvious the culprits, they will live in a fantasy world where others, like the Tea Partiers, are at fault.
Many will never be able to reconcile themselves with the idea that this is the natural, inevitable, result of a credit driven economy. Nor the fact that a credit driven economy is the natural result of a Central Banking, Federal Reserve, government creating wealth by printing paper, economic model.
Any parent with children knows the stimulating effect sugar can have on kids and they also know the inescapable crash “always” occurs. It doesn’t matter the stimulus, crack, coke, alcohol, meth or Keynesian stimulus, the crash ALWAYS occurs. Nor does it take Keynesian philosophy to produce a Keynesian stimulus, every time the Federal Reserve creates money it has the effect of Keynesian stimulus. It doesn’t matter if the kids get their sugar in ice cream or Kool-Aid the crash still happens.
The purported reason for creating the Federal Reserve System was to stabilize the economy by providing liquidity in down times. That liquidity IS stimulus. It may have extended good times or eased recessions but has also created deeper troughs and depressions than existed before its creation. No surprise. The crash always comes and the better they get at forestalling the crash the deeper the depression to follow.
Stability is the stated purpose. In actuality, the purpose of the FED is to maintain a constant rate of inflation and to give the government greater control over the economic lives of ordinary citizens. Constant inflation is like a tax on every single dollar held by every person of whatever station, anywhere in the world. It has also caused the dollar to lose 99% of its value in less than 100 years. All of this to stave off the deflationary bogeyman. Deflation IS a bogeymen. Our economy has been no better off post 1913 than it was before 1913.
Giving the government, in the form of the FED, greater control means congressmen get sweetheart loans and mortgages from large member banks. But don’t call them bribes. It also means congress has a ready way to secretly tax the American people by having the FED “stimulate” the economy by purchasing Federal Debt. Congress also gets to see easy money policies used to reward their big corporate donors. Ever notice how you don’t get the 0.25% Federal Funds Rate loans? No those loans go to big banks which in turn dole out ultra-cheap loans to “stable” companies like GM or Chrysler while small businesses are offered “factoring” style loans at junk bond rates. (Yes, I know some favored small businesses get Chris Dodd loans from SBA just like other favored small businesses are awarded special HUBZone contracts for being on the correct side of a street while the guy across the street is SOL.)
Finally, constant inflation means savers are punished. Even if savings accounts paid enough interest to keep up with inflation, savers get to pay income tax on the interest that MIGHT have kept them even. And what does a lack of savings, or worse a steady accumulation of consumer debt, mean? It means at retirement you absolutely, positively WILL BE dependent on government “charity” just to survive. I know it is fashionable to say retirees “paid” in and therefore it is not “charity.” For an average person living 10 years into retirement the amount of benefits collected exceeds anything they paid in. At some point you have to call it charity. What makes it truly terrible is another truth. If they had been allowed to keep their money and save it, and if the Federal Reserve were not dedicated to destroying the value of those savings, the average person would live a better retirement AND have something to leave to their children. Instead they are turned into yet another dependent class and reliable vote for big government. Reduced to begging from the bastards that robbed them.
At no time before 1913 did monetary policy threaten the very existence of the Republic.
It does now.
Keynesian monetary policy, the deliberate creation of a debt driven economy, the constant and determined expansion of the dependent classes for political purposes has reached the point of collapse. We shouldn’t make the mistake of thinking the “dependent” class is merely taking advantage of the system. They truly are dependent. They are NOT capable of taking care of themselves. Whether retirees who have no significant savings or investments and lacking the physical health to continue working, or fourth generation welfare recipients with absolutely no skills to offer society due to an abysmal school system dedicated to enriching text book printers and teachers unions. They are not able to care for themselves.
Some, like the welfare class and most of those on disability would find ways to provide for themselves absent government largesse. Others, some on disability or retirees, will never be able to provide for themselves.
Even the ones who could; won’t.
When the government is telling them YOU are the reason why their checks are being cut, YOU are the reason they can’t keep their free cell phone or free cable TV and it is only YOUR greedy conniving Tea Partying ways that would force them to STARVE. How your “vast” wealth as a small business owner, your success as an investor or inventor or the fruits of your studies and hard work to become a doctor or engineer, really belongs to “the people.”
“Dependence begets subservience and venality, suffocates the germ of virtue, and prepares fit tools for the designs of ambition.” Thomas Jefferson
One hundred plus years of “progressive” growth of government is about to pay off and most of the useful idiots working so hard to bring about the glorious revolution don’t have sense enough to realize the bulls-eye is big enough to cover them as well. All those wealthy congressmen, masters of titanic industries, Hollywood losers and welfare queens will find the tyrant they are creating will consume them as readily as it will consume us.
Even among conservatives there is a lack of understanding and a faith in the “inherent goodness” of government that prevents their recognition that all of the Federal bureaucracies, the judicial systems, the safety net and yes, the Federal Reserve, either enable or directly advance the destruction of liberty and virtually guarantee tyranny will have its day in America.
“A long habit of not thinking a thing wrong gives it a superficial appearance of being right.” Thomas Paine
Thomas Paine knew government was evil.
“Government, even in its best state, is but a necessary evil; in its worst state, an intolerable one.” Thomas Paine
George Washington knew government was a terrible master.
“Government is not reason; it is not eloquent; it is force. Like fire, it is a dangerous servant and a fearful master.” George Washington
James Madison knew tyranny advances by slithering and creeping and subterfuge.
“I believe there are more instances of the abridgement of freedom of the people by gradual and silent encroachments by those in power than by violent and sudden usurpations.” James Madison
“If Tyranny and Oppression come to this land, it will be in the guise of fighting a foreign enemy.” James Madison
Patrick Henry knew that secret councils, back room deals and concealed transactions meant the death of liberty.
“The liberties of a people never were, nor ever will be, secure, when the transactions of their rulers may be concealed from them.” Patrick Henry
Thomas Jefferson knew government could not be trusted and therefore must be restrained.
"It is jealousy and not confidence which prescribes limited constitutions, to bind down those whom we are obliged to trust with power. Our Constitution has accordingly fixed the limits to which, and no further, our confidence may go... In questions of power, then, let no more be heard of confidence in man, but bind him down from mischief by the chains of the Constitution." Thomas Jefferson
And in all that John Adams knew government could only be restrained by a moral people.
"Our Constitution was made only for a moral and religious people. It is wholly inadequate to the government of any other." John Adams
Government is a sneaky, self-absorbed, evil, terrible master. Donning misleading raiment and perfumes and façades, empowering surrogates to avoid blame and paper tigers to justify outrageous actions, all to disguise its true intentions; unlimited power.
No government in history has ever voluntarily reserved its actions to those essential acts for which they are created. Ours is no exception and therefore it must be restrained. It will not be restrained by immoral men unable to restrain themselves. Knowing this, our government has embarked on a campaign to confuse and destroy the moral fiber of the nation.
Tyrants cannot rest easy in a nation filled with virtuous men. They must destroy the virtue or the man.
An earthquake is coming. It is not the kind of earthquake the unprepared or uninitiated will weather intact.
We are about to be tried by the fire. Politically, there is only one rock we can cling to that will not move. If you waste your efforts clinging to your favorite alphabet soup agency, government program or extra-constitutional government creation you will not weather this storm and you may take the rest of us down with you. Stick to a strict interpretation of the US Constitution. Don’t allow progressive innovations to taint your understanding and cloud your judgment. From the beginning these innovations have existed. From 1913 on, there has been no other kind.
This cannot be truer than in the realm of public education which will always be used to propagandize our children. Every dictator in recent history has understood the importance of state control of education. We should understand the critical importance of this issue as well.
"He who knows nothing is closer to the truth than he whose mind is filled with falsehoods and errors." Thomas Jefferson
For conservatives I say this, the earth DOES move. The paradigm is about to change.
Update: The DrudgeReport.com headline “REPORT: Congressional members net worth up 3,669%..” I referred to can be found here. The underlying article indicates that was one particular Democrat not an average. The average for the Democrats was only 800% in five years. Practically honest aren't they?
The Republican numbers are better at 200% in 5 years. This still means their net worth tripled in five years. It's good to be the king.
I had not read the article so I referred only to the headline in my piece.
- A hopefully helpful 'stimulus' analogy. (redstate.com)
- End Game (lewrockwell.com)
- Keynesian Economics: Economics Of Big Government Take Over! (politicalvelcraft.org)
- RIP: Neo-Keynesianism, 2007-2011. (redstate.com)
- Boost Economic Growth by Slashing the Size of Government (sago.com)