Bush's Political Contortion and the Suicide Squeeze to come
Some commentary on the political contortion witnessed in Bush's speech last Thursday night. My rantings follow...
From Max Sawicky at MaxSpeak:The Era of Limited Government is Over
"However messy the use of money becomes in the hands of the Bushists, I maintain that this is a watershed moment for the limited-government movement. What we have in this Administration is an unwholesome mixture -- the term toxic soup comes to mind -- of Christian fundy prejudice (towards non-Christians, science, and the Enlightenment), Wilsonian jingoism, and blind anti-tax sentiment. Big, stupid government is all over your bedroom and your public schools, driving your kids further into debt, rattling an insubstantial sabre at a legion of emboldened international miscreants. These people will be the death of us all."
And Kash at Angry Bear: Redefining Conservative
"it is very striking to me that Bush is no longer simply increasing government spending because it is the path of least resistance (which is what the Bush spending increases of the past 4 years might have been); rather, Bush is now explicitly and publicly agreeing with one of the central presumptions of liberals and progressives, and publicly rejecting the central tenet of traditional Republicans, by saying that he believes that the government is not the problem, but rather is the solution. Barry Goldwater and Ronald Reagan must be turning over in their graves."
If you think Bush and the Republicans have spent alot of money to date on the Iraq war and otherwise, think again. Bush's recent political contortion in not without foundation or rationale.
The government is now the main source of jobs creation in this country, not the private sector and it is their mandate to spend, spend, spend.
The IRAQI war is our Arab war, much like the bloated debt ridden UK fighting the Turks in Arabia during WWI to keep its vested and future interests in their oil fields alive. Albeit, today we have no T.E. Lawrence of Arabia.
The US was the up and coming creditor power with cheap labor, thats when MADE IN THE USA was plastered on everything. Today we are in the position of the UK, while China is the new kid on the block, fortunately for US, the dynamics of the game have changed drastically.
You can credit the Fed and government with spending the money they don't have whilst refinancing past debt and borrowing new debt at a currently ridiculously low interest rate from willing umbilically attached foreigners who have a vested symbiotic interest in their future and ours.
This Machiavellian plan is fostered with transparency through manipulation of employment, CPI (inflation) and real GDP numbers and this "global forex arbitrage" will probably be Greenspans ultimate legacy.
With rising rates targeting the housing asset bubble, the employment transition for millions from what will be a shrinking housing, mortgage and financial sector (40% of GDP growth over the last four years) needs to be orderly.
The Federal government will be spending huge amounts of money (that they do not have) on the Katrina New Orleans FEMA bailout, PBGC pension plan bailout, IRAQI war and a myriad of programs to stem the tide on our shrinking jobs base.
The current accounts or trade deficit, will balance itself over time, as global economies slow, tens of millions of Chinese and other foreign workers will be transitioned to other sectors and internal projects as well by their governments.
These employment sector transitions are already planned for and well underway. This is one of the reasons the Chinese have widened their band on the dollar and are hoarding cash reserves.
They know whats coming, because they are reading from the same script as the rest of the players. Oil, gold, diamonds, precious metals, bonds, stocks, all assets will be deflated in sector rotation and only cash will be the true king.
For US, the $15 Trillion question is, how do we manage the budget deficit and national debt? The "suicide squeeze" thats how.
Europeans have been used to lower wages, 50% taxation off the top, (you never see it) and paying $2 more per gallon at the pump for years. Their governments throw them one bone, socialized medicine, and eventually thats the bone we will get too.
Lower wages, higher energy costs and alot more taxation in the form of property, sales, consumption, income and sin taxes are all on the way. The price we must pay the piper to dance is a drastically lowered standard of living in the next 5 to 10 years.
This is the "suicide squeeze" that the US public are going to get whether they like it or know it or not, and thats how the deficits will be managed. By 2015 you will look back and say, "Wow, I remember the GOOD OLD DAYS, the roaring 90's back at the turn of the Millenium, when we were partying like it was 1999"...
From Max Sawicky at MaxSpeak:The Era of Limited Government is Over
"However messy the use of money becomes in the hands of the Bushists, I maintain that this is a watershed moment for the limited-government movement. What we have in this Administration is an unwholesome mixture -- the term toxic soup comes to mind -- of Christian fundy prejudice (towards non-Christians, science, and the Enlightenment), Wilsonian jingoism, and blind anti-tax sentiment. Big, stupid government is all over your bedroom and your public schools, driving your kids further into debt, rattling an insubstantial sabre at a legion of emboldened international miscreants. These people will be the death of us all."
And Kash at Angry Bear: Redefining Conservative
"it is very striking to me that Bush is no longer simply increasing government spending because it is the path of least resistance (which is what the Bush spending increases of the past 4 years might have been); rather, Bush is now explicitly and publicly agreeing with one of the central presumptions of liberals and progressives, and publicly rejecting the central tenet of traditional Republicans, by saying that he believes that the government is not the problem, but rather is the solution. Barry Goldwater and Ronald Reagan must be turning over in their graves."
If you think Bush and the Republicans have spent alot of money to date on the Iraq war and otherwise, think again. Bush's recent political contortion in not without foundation or rationale.
The government is now the main source of jobs creation in this country, not the private sector and it is their mandate to spend, spend, spend.
The IRAQI war is our Arab war, much like the bloated debt ridden UK fighting the Turks in Arabia during WWI to keep its vested and future interests in their oil fields alive. Albeit, today we have no T.E. Lawrence of Arabia.
The US was the up and coming creditor power with cheap labor, thats when MADE IN THE USA was plastered on everything. Today we are in the position of the UK, while China is the new kid on the block, fortunately for US, the dynamics of the game have changed drastically.
You can credit the Fed and government with spending the money they don't have whilst refinancing past debt and borrowing new debt at a currently ridiculously low interest rate from willing umbilically attached foreigners who have a vested symbiotic interest in their future and ours.
This Machiavellian plan is fostered with transparency through manipulation of employment, CPI (inflation) and real GDP numbers and this "global forex arbitrage" will probably be Greenspans ultimate legacy.
With rising rates targeting the housing asset bubble, the employment transition for millions from what will be a shrinking housing, mortgage and financial sector (40% of GDP growth over the last four years) needs to be orderly.
The Federal government will be spending huge amounts of money (that they do not have) on the Katrina New Orleans FEMA bailout, PBGC pension plan bailout, IRAQI war and a myriad of programs to stem the tide on our shrinking jobs base.
The current accounts or trade deficit, will balance itself over time, as global economies slow, tens of millions of Chinese and other foreign workers will be transitioned to other sectors and internal projects as well by their governments.
These employment sector transitions are already planned for and well underway. This is one of the reasons the Chinese have widened their band on the dollar and are hoarding cash reserves.
They know whats coming, because they are reading from the same script as the rest of the players. Oil, gold, diamonds, precious metals, bonds, stocks, all assets will be deflated in sector rotation and only cash will be the true king.
For US, the $15 Trillion question is, how do we manage the budget deficit and national debt? The "suicide squeeze" thats how.
Europeans have been used to lower wages, 50% taxation off the top, (you never see it) and paying $2 more per gallon at the pump for years. Their governments throw them one bone, socialized medicine, and eventually thats the bone we will get too.
Lower wages, higher energy costs and alot more taxation in the form of property, sales, consumption, income and sin taxes are all on the way. The price we must pay the piper to dance is a drastically lowered standard of living in the next 5 to 10 years.
This is the "suicide squeeze" that the US public are going to get whether they like it or know it or not, and thats how the deficits will be managed. By 2015 you will look back and say, "Wow, I remember the GOOD OLD DAYS, the roaring 90's back at the turn of the Millenium, when we were partying like it was 1999"...
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