Monster Message, 4.5.2011

Monster Message, 4.5.2011

If by the end of 2010 the federal government continues ad hoc public spending programs to create jobs, the United States will find itself deeper in debt, less able to repay it, and no more competitive on the world stage than before, in fact likely less so. – Eric Janszen

I have finished ‘Aftershock‘ and am now re-reading Eric Janszen’s
The Postcatastrophe Economy: Rebuilding America and Avoiding the Next Bubble.

Although I agree with ‘Aftershock’ authors’ analysis of a multiple bubble economy popping and putting pressure on lateral bubbles causing them to break and drag the economy farther down, I do disagree with their assessment that there will not be violent civil unrest in the streets. Wisconsin is only a prelude to what will happen when the US dollar collapses and ‘Peggy the Moocher’ finally figures out that there isn’t free ride. Please Google ‘Rodney King’ and ‘OJ Simpson Trial’.

On the other hand, Mr. Janszen’s theory of two totally separate economies, the FIRE economy (Finance, Insurance and Real Estate) based on debt and interest, and the real productive economy we live in is much more spot on in it’s analysis. The FIRE economy is collapsing and the productive economy is being sucked dry by the government to prop it up.

A small excerpt protected by the Fair Use clause of the US Code:

The FIRE economy, which was based on financial engineering, capital gains from inflated asset prices, and other nonproductive financial schemes and tended for decades by special interests, grew to great heights and shaded a once vibrant economy below, an economy based on production, savings and investment.

The FIRE economy also depended on a steady stream of cheap credit and oil, for without it credit-financed consumer spending cannot rise; purchasing power would be sapped by household expenditures on heating fuel and gasoline, and by borrowing at high rates of interest. The solution was to inflate the purchasing power of the U.S. dollar, the currency used for oil trade by the United States and its trade partners, depreciating the price of oil in the process, and to tap into our trade partners’ so-called excess savings.

The FIRE economy is an umbrella term that incorporates the whole dysfunction of the American political economy that has resulted in FIRE industries capturing our government. The same dysfunctional system also produced, among others:

  • the military-industrial complex that heavily influences foreign policy;
  • the credit-industrial complex that layers economic rents, such a interest payments and fees, on every economic activity, from education to health care, and punishes savers with taxes and rewards debtors with tax deductions;

Those are just two of a long list of special interests that control our government, and I highly urge my readers to get this book from the library and read it as it gives some valid proposals for getting the productive economy back on it’s feet and the FIRE economy where it belongs; a supporting role instead of sapping every single iota of lifeforce out of this country.

I will be posting a longer article on both of these books and the GOP’s attempt to get people used to the idea of austerity with trillions of dollars of spending cuts in order to keep the US dollar alive and the FIRE economy with it.  Don’t get me wrong, $21 billion, $33 billion, $61 billion AIN’T ENOUGH when a trillion is 1000 billion.  My thinking is going way beyond spending cuts to how we, as a people, disentangle ourselves from the Fed, the government, and the FIRE economy in such a way that does not create paupers of us all.

(H/T MT for the book.)

Paul Ryan understands the financial tsunami that is about to hit us. I’m just not sure his proposal is going to achieve the best results for the time, effort, and money invested.  More on that later also.

Paul Ryan – Years of Empty Promises

Paul Ryan Takes Chris Matthews To The Mat On Deficit Reduction

Paul Ryan Takes Chris Matthews To The Mat On Deficit Reduction

You gotta love it when Saul Alinsky sycophant Chris (the tingle has reached his brain) Matthews tries to verbally spar with Rep. Paul Ryan (R-MI) about tax increases, numbers, math, red ink, black ink, plans, maps, etc.  Chris was so mentally outgunned that I almost felt sorry for him while he was trying his damnedest to make the republicans look bad, twist answers, and blame Bush.

Chris either hasn’t seen this chart or he is lying about everything being Bush’s fault.  Make no mistake, Bush 43 ranks very near the top of my least favorite presidents’ list, but let’s give Obama the credit he is due when it comes to flushing our money down the toilet and selling our descendants into financial slavery.  Let’s also give the Democrats a massive portion of the blame when they took control of the Congress in 2006 and wrote massive spending bills.

Rep. Paul Ryan speaking at the American Enterprise Institute about the American Roadmap (7.21.2010):

Arthur’s book talks about a “new culture war,” initiated by the Progressivist elite, but there’s something in it to be thankful for.  Our current leaders with their ideological agenda have awakened America! They have reminded us of all we have to be grateful for.  We relish the opportunity to take back America’s heritage of freedom!

And here’s my final point: the case for our founding principles and for free market democracy has always been based on a moral proposition—the equal dignity of every person—the capacity to control or guide our own lives and to grow in self-responsibility to our families, our country, and our Maker.  Progressivist plans for a social welfare state are rooted in materialism.  They misunderstand human happiness and suppose it can be purchased with redistributed dollars.  We seek fulfillment in achievement and work… or earned success… our flourishing in self-government under a limited constitution.

Those who wish to replace the principles that made America exceptional have posed their challenge on several fronts at once—economic, social, international, and even philosophical.  All are interconnected, because the moral foundation that supports freedom in one area supports freedom in all.  This is a mighty trial over the very meaning and dignity of the human person.  In the political domain, the issue comes down to this: Is government to be master or servant?

My message is sober but my confidence in America is boundless.  Once Americans understand that this is the great question of the day, they will, as always, take their stand upon the rock of our foundation of freedom.

For the full transcript of this speech, go here.

A Roadmap For America’s Future Version 2.0

The Monster’s Dream Team For 2012

The Monster’s Dream Team For 2012

I just had a conversation with the RedLemur about how I believe that Hillary is going to be mounting another presidential campaign in 2012.  Has it been noticed that she is carefully stepping around the landmines of the ‘freedom flotilla’  issue while trying to look like the neutral party who achieves middle east peace?

Ultimately, the solution to this conflict must be found through an agreement based on a two-state solution negotiated between the parties. This incident underscores the urgency of reaching this goal and we remain committed to working with both sides to move forward these negotiations.

I think the situation from our perspective is very difficult and requires careful, thoughtful responses from all concerned. But we fully support the Security Council’s action last night in issuing a presidential statement and we will work to implement the intention that this presidential statement represents.

The conversation turned toward the possibility that Newt Gingrich might run on the republican side and how the idea of Newt in the White House is almost as scary as Rumsfeld or Cheney being anywhere near the Oval.

Which brings me to the theme of this post; if I had a choice for the republican ticket in 2012, who would it be?

West – Ryan in 2012:

Lt. Col. Allen West

Lt. Col. West telling it like it really is!

Congressman Paul Ryan (R-WI)

Paul Ryan at the Obamacare Summit

Why would we want to recycle the same old war horses that got us into this mess in the first place? Isn’t it time for a breath of fresh air that hasn’t been masquerading as something else for decades?  Isn’t it time for people so far down on the food chain, that the possibility of them not being involved in the corruption is greater?

(H/T TheRightScoop for the West vid.)

Stossel: This Is What Unsustainability Looks Like

Stossel: This Is What Unsustainability Looks Like

Stay with this video because the visuals starting at 4:00 are background information that Americans need to understand the problem.  Also, Stossel interviews Paul Ryan as the ‘Paul Revere’ on the tsunami of debt headed our way.  Wait until you see the interest on the debt that is coming in Part 2.

Part 2:

Part 3, the Entitlement Game and Joel Kotkin, ‘America in 2050’:

Part 4:

Part 5:

Paul Ryan On Obamacare And The Economy

Paul Ryan On Obamacare And The Economy

Titanic Of Debt Clocks.

Rep. Paul Ryan: Obama’s New Budget Will ‘Literally Crash the U.S. Economy’

( – Rep. Paul Ryan (R.-Wis.), the ranking member of the House Budget Committee, told that the new fiscal year 2011 budget proposed by President Barack Obama will “literally crash the U.S. economy” with the additional debt it plans for the federal government.

“They literally crash the U.S. economy, if these kinds of deficits that he’s proposing persist,” Ryan said, referring to the fact that the Congressional Budget Office has reported that the president’s 2011 budget proposal would nearly triple the publicly held portion of the federal debt over the next ten years.

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