By Larry Leonard
It’s all a matter of numbers. That is, under perfect conditions, there is a maximum number of pennies you can suck out of the Paris branch of the Left Bank.
I don’t know how many of these socialist blows our old girl has left in her. That is both a turn of phrase and an actual real comment. Over my lifetime, as if it were my fault, the liberal slugs and their flocks of financial suckups have devoured to this point about one-half of America. Half of our adults are forced to send money to the government, and half of our adults for doing nothing receive part of that pool of money.
Survival at Sea
The best metaphor for that item is an oceanic surface craft and a torpedo. Harmless misses can be nervously ridiculed. Lucky impacts by duds can cause the scuttles to run brown with excrement. One big contact with detonation will either blow the rudder or the props off — or create a hole that will send the ship to the bottom.
In this latter case, the amount of time it takes for top of the mast to sink out of sight is a formula thing. Very specific numbers are involved. Basically it is a number in hours that is determined by dividing the output of the bilge pumps into the input capacity of the hole in the hull.
Luck is involved here. One ship may be hauling lead pigots. It will go down like a rock. Another ship may by completely packed from the keel to the gunwales with styrofoam, and wouldn’t go down if God stepped on it. What is national economic styrofoam? The gold reserves in Fort Knox. When is that floatation gone? Even if you can see it sitting there, it is gone when the amount of dollars the nation has borrowed exceeds by one dollar the value of what you’re looking at in the vault.
When that happens, the interest you have to pay to borrow money rises. Printing money on U.S. Treasury presses is identical to borrowing money from anybody, anywhere, as far as the economy is concerned. Internal bonds, external bonds or just the prices of things, it’s the same. The cost of stuff or money goes up. It takes more dollars to buy more dollars, and/or it takes more dollars to buy the same amount of stuff. (Stuff could be physical stuff or services. It may cost you more for the rug, or more to hire somebody to vacuum the same rug.)
What matters in life?
You may say, Leonard can only think about money. There are more important things in life. That is true until the price of a potato (with or without an “e”) rises to where it takes a wheelbarrow to carry enough dollars to the market to buy one. At that point, in Germany after WWI, the resulting misery opened the political door for Adolf Hitler to become a dictator in that nation. The most efficient fuel for generating hunger is the inflation of prices. With hunger you get a dissolution of social structure.
You can manufacture chaos. All you need to do that is (1) bad monetary and tax policy, or (2) a lot of people who either think the world owes them a living or simply prefer doing nothing for a living.
People ask me when the car will go off the cliff. I tell them that the American national economy is, up to a point, like a willow that bends with the storm, and stands up when the winds have departed. But after that point, it is like an oak, and the tree trunk will snap, and die.
Effect and Cause
Of late, I’ve been thinking about researching the Great Depression with these things in mind. I wonder if it began, just like our current Great Recession, with Liberals taking over Congress during a hot economy (the Roaring Twenties) and by way of government expansion and horrible economic policy in the name of doing good, gutting Good Times and turning them into decades of misery. (Choking the goose that was laying golden eggs.)
These things happen for reasons. I have this strong hunch that a little research would find a long-hidden Dodd-Frank infection in there that explained the legendary financial Crash of October 1929. (Actually a series of crashes.) [Editor's note: the Federal Reserve Act of 1915 was that infection]
While community (small town America) business remained a disaster through the many terms of FDR, and even the big urban centers had bread lines, the price of a share of of General Electric came back 100% by October of 1930. I put that in a piece I titled: At Last: How FDR Did it…
The Left would say, “Well, that’s the greedy rich for you.” But G.E. didn’t print money. Where did they get it? One thought I had was that they got it the same place as this time: by way of crony capitalism — which is exactly what happened in Germany. Bailouts. Ford didn’t take the bailouts like the other car companies did. And, then, there have been all those “green” energy capital infusions by Obama.
It is so odd to see socialists in bed with gigantic capital sources like big banks. It runs completely counter to the socialist fairy tale.
I could codify my specific and overall points here by saying the road to hell is paved with good intentions. (Liberal do-gooders) But, that’s not accurate. I think it’s more like: To win a war and steal a nation, you need soldiers. To a socialist, these days, America is a fine place to build a voluntary army.
Obama’s infrastructure “investments” are creating a road to Hell.