neo-neocon » Blog Archive » Just when you think it can’t get any worse…

But I wouldn’t call it by that word exactly. What the Left has done is indistinguishable from shooting fish in a barrel.

With the US Dollar as International Money/ the reserve currency it is critical that we run perpetual current account deficits.

Should America start, for any reason, to run a surplus then the remainder of the planet would be driven into a dire cash thirst.

That dynamic, BTW, is what set off the American Revolution. At the end of the Seven Years/ French & Indian War the British Crown owed fantastic sums. (war bonds, aka ‘gilts’) Using mercantilist logic and a virtually closed trading bloc London ramped up taxes — to pay down the gilts. Since these import taxes and excise taxes were re-injected back into the English economy by way of cashed out gilts — it was all good.

However, PM Pitt decided that the American colonies — particularly the northern ones — needed to participate in the tax pain — which they were avoiding by trading directly with Holland. (The long time British ally was virtually duty free.) This led to the Stamp Tax, etc. Such colonial taxes LEFT THE AMERICAS as hard money… to pay down gilts held in England. Consequently, all of the colonies went into a profound cash thirst. This dire situation is almost never brought up in high school histories — nor in college texts, either.

The current account deficit is not the issue. It’s the insanely imbalanced Federal budget.

Barry has, de facto, increased taxes — in peacetime — by a record amount — whether you figure it in % or $.

He has, and is, using this flush fund to fund his cronies, voting blocs, et. al. while cutting the Democrat party off at the (funding) knees. The fools are not yet comprehending his deeper game.

Corporate America is leveraging up — to establish short positions against the dollar.

Hot Chinese money is now entering the Los Angeles real estate market in volume. This is but an echo of the Japanese move twenty-five years ago. Like the Japanese, the Chinese are paying all cash — dumping their dollars to get something real.

This is exactly what happened to Weimar Germany. The overseas currency came back in a swoosh to buy up every quality asset in sight.

We are right on track… and the domestic public STILL doesn’t see it.

Who is ‘they’?

The US ‘war’ started a long time ago. Perhaps the ‘warriors’ knew their Gramsci and Sun Tsu, capped by Alinsky. I conclude the war is lost, has been lost. They won without stacking bodies. We incrementally surrendered, and are done.

I remember 20 yrs ago my stepfather fussing about the US current account deficit, how this could not go on. I had no answer; I was then part of the problem. I now feel shame and guilt, but it is too too late. We pissed America away in our ignorance and our passivity.

Thanks for the recommendation.

The connection with the Zimmerman case is that if/when the economy implodes and collapses, the resilience of cut-off (formerly middle class) micro-communities will be paramount. The government seems intent, however, on gutting that resilience.

But, those ARE the very jobs that will be lost when Barry can’t cover them with tax collections.

When Weimar Germany had to retrench it was the (previously) protected segments that were cut-off — overnight.

The national accounts were blowing up BECAUSE the central government was trying to protect various (economically parasitic) blocs.

In 1923 the largest bloc was the railroad system. Modern voters can’t wrap their heads around just how HUGE the railroad industry was only a century ago.

It did more than haul freight. It was a monster pension machine, too. (all countries, BTW)

Hence, it was a third rail of German politics. Once Britain and France took over the accounts, massive lay-offs cut the head count 60%.

At the same time, government payrolls were clipped — brutally. The ex-employees didn’t get much more than a handshake. (BTW, many of the affected employees already had side jobs — kind of like todays firemen scheduling contracting jobs on the side.)

It will come as a shocker to many college graduates: their intended careers in government will evaporate. This is already underway with lawyers.

0bamacare math makes it too expensive to hire NAMs. It even makes it too expensive to hire most of the population.

In Europe and Japan, with similar health care schemes, most college graduates have to wait through their twenties to even get a full-time — health care providing — job.

It would also HAVE to be a job close to the old homestead, too. There is, essentially, no labor mobility in Europe. If you can’t find employment in your old hometown — you’re completely out of luck. You’d have to emigrate to America to find employment.

“Zimmerman pulled me back in”.

Comment by Michael Corleone