The Trap

Coypright 2009 by madengineer3

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America is facing its most dangerous problem since the Revolutionary War. This is not hyperbole. Our way of life, up until the twentieth century, was based upon initiative, hard work, creativity, and individual freedom. (Yes, I know about the gross injustice of slavery. I am leaving that out of the discussion.)

As one who has worked with things scientific over my life I am used to both small and big numbers. The average citizen is not! I want to provide a context that will allow the average citizen to see where we are headed.

One of the current estimates for the entire Earth's gross production for one year is on the order of thirty-eight trillion dollars. That is the value when you add together everything we, Japan, Korea, China, the UK, Russia, etc. produce in one year.

The United States Treasury provides an accurate historical record of our national debt. It took us over two hundred years to reach a debt of approximately ten trillion dollars. That debt represents about two thirds of our entire country's industrial output per year.

There are only two ways to increase the money supply. One is to borrow the money. However, things are financially tight all around the world. The other is to print money that has nothing new behind it. When this is done the value of the dollar decreases. This takes the value people have put aside for retirement, college expenses, medical care, housing, and all other such things; and steals that value. That is what inflation really is. It is the government stealing the value of all money that is saved in terms of dollars. If the wealth is stored as real estate, precious metals, fine art or such, it is not affected by inflation.

Our economy is as bad as it has been since the early nineteen-eighties. We are far below the (over 20% plus) unemployment of the depression. The quickest, cheapest, and most direct way to inject money into the economy is to do what Ronald Reagan did. He lowered the taxes on investment and production. That can be done with one or two simple bills in Congress. It also leaves the banks and means of production in the hands of private entities as opposed to the government.

What will the plans coming out of Washington, DC do to us, at the current rate?

1) Our new Sec. of the Treasury outlined his plans on t.v. recently. As I remember it he is discussing the expenditure of about 2.5 Trillion dollars in his plan.

2) The budget that is being proposed by the executive branch is likely to be about 2.5 trillion dollars. The recent "stimulus" bill will, with interest, be about 1.2 trillion dollars. The health care plan, by the time it is all accounted for, will probably come in at about 2.5 trillion dollars. Last year we bailed out several firms and passed the TARP bill. All together that amounts to about one trillion dollars.

3) In the "stimulus" bill there is a section that institutes a medical oversight board that will determine the cost effectiveness of our medical care. Read, rationing of health care for the elderly, etc.

4) New layers of government management will be created so that the government will tell you what fuel you will use (carbon tax and caps) how your bank works, etc. Read, we will loose even more freedom. Note, the Constitution of the United States enumerates the powers that the federal government has. It was written to restrict those powers. Our federal government is now trying to reinvent itself in the European socialist role.

What is the point of all of this? That total, which will mostly be allocated during this fiscal year is about 8.7 trillion dollars. With the new allocations (which will have to be borrowed or simply printed (stealing retirees savings) our national debt is likely to go to about 18 or 19 trillion dollars. Remember that the total output of goods and services in the united states is about 15 trillion dollars a year. It took us over two hundred years to reach a ten trillion dollar debt. We will owe more money than the entire United States economy generates in one year!

Why is our government doing this? The answer is relatively simple. The liberal sides of the Democratic and Republican parties are actually more accurately called a Socialist party. They are not just simply socialist, they lean in the direction of "national socialism" where private people own the means of production but the government tells them exactly what they must and must not do with their property. It is my opinion that the artificially enlarged panic produced by the constant negative comments made by the president, and his cabinet, are to purposely frighten the public into accepting any solution that promises stability. Our leaders are all too ready to make us into a socialist nation.

There are a couple of interesting parallels to what we face right now.

In the early twentieth century Russia was in the depths of a very bad recession. The Czarist rule had been harsh and brutal. Peace and stability was offered by the Bolshevik revolution. The people bought it and Communism took over Russia.

After World War One, Germany was in extreme financial trouble because of the inequitable treaty of Versailles. They had a depression going on before anyone else did. There was political unrest and eventually street violence. People wanted to find a comfortable way to solve their problems. The result was that the National Socialist party took over control of Germany. You probably know them better as the Nazis.

We are, I believe, at a threshold like Russia and Germany were. God help us if we make their mistake and trade our freedom for socialist bondage.