Bailouts, and the Worldwide Collapse of Nanny State Socialism.

Connie Hair at Human Events has written an eye-opening article about the US taxpayer's partial bailout of Greece AND the European Union via the International Monetary Fund. The Obama Administration is desperately trying to keep the Euro-socialist economies from failing, while at the same time avoiding the only lesson that's worth learning here:

Socialism doesn't work! As Margaret Thatcher said, "sooner or later you run out of other people's money."

Socialism violates the most basic principles of the property rights which underlie our freedoms. Whether it's the national socialist/fascist model, international socialist/communist model, or the Euro-socialist nanny state model with it's runaway public sector unionism, the result is always the same: Socialism fails every time it's tried. It collapses of it's own immorality because the state functions as a klepocratic, redistributionist cancer--afflicting the ambitious and hard-working with crippling taxes in order to buy the votes of the rest.

There are three legitimate balance sheets left in the world:
--The German household which is backing German government and EU deficit spending,
--The Chinese household which is in the midst of a GIGANTIC housing bubble,
--And the American household, already overburdened with mortgage and credit debt.

They're backing all of the irresponsible borrowing and spending of their respective governments. In other words, the emperor has no clothes! We are in the midst of the largest confidence scheme in the history of the world. Washington DC is printing money and monetizing debt as never before and the money backing it (the American household) JUST ISN'T THERE! Check out national debt/citizen, personal debt/citizen and then unfunded liability per citizen. All together its $447K per citizen. Subtract $234K assets per citizen and you get $213K total liability per citizen (a hell of a lot higher per taxpayer!). Of course this does not include the billions in IMF pledges we just made to the EU. The same holds true for the EU and to a lesser extent China and Japan.

The majority of the population capable of basic comprehension understands that we are creating unsustainable debt, and that there will be hell to pay as the result. Most people also understand that getting OUT of personal debt is the best strategy for surviving the coming crash. And it's not a question of IF that crash will happen, it's only a matter of WHEN it happens.

What works for individual households also holds true for nations. Debt creation and deficit spending must be reduced.

In her article Connie Hair quotes Mike Pence (R-IN) as saying, “America is not looking to the European Union to bail out New Jersey or California,” he said. “The European Union should not be looking to the taxpayers of the United States of America to provide the loan guarantees to bail out Greece or Portugal or Spain or any other country.”

Amen brother Mike! Our own socialists have given us enough debt to deal with here at home. Flushing $54 billion dollars more into the Euro-toilet is adding insult to the injury already suffered by the American taxpayer. Our only chance for surviving the coming crash is to reduce government spending dramatically across the board, and grow our economy by cutting taxes. The FairTax seems to be the best system of federal taxation to save our economy.

The Republicans are currently working on legislation to block the planned European bailouts. It's a good start!