Friday, May 14, 2010

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!


  1. "sooner or later you run out of other people's money." that line my friend..never heard tha tone!!:)
    Have a beautiful weekend!!:)

  2. Maggie Thatcher is one of a kind! Thanks Angel.

  3. Detroit-one of the very first -socialist/welfare - entitlement 'experiments' here in the :

    sad-a once beautiful city...

  4. Great article! I linked to it @ my site!

  5. Fair tax, baby, all the way. Repeal the 16th amendment first a huge priority! Here's an interesting article on the history of the 16th amendment far better than the wikipedia source. Keep up the great work, RI!

  6. Christian soldier I've never been to Detroit, but I've heard that it's gone dramatically downhill.

    Right Ideas thanks for stopping by, I'm glad you liked my rant!

    nacilbupera I've been a FairTax proponent from the start. Our family has gone to numerous rallies, written letters, and I've called radio talk shows trying to get the word out. The FairTax is the single best idea for jump starting the American economy.

  7. I wish the Duck would comment on this one. I am utterly amazed at how nations with negligible defense spending managed to get into financial ruin.

    The truth is more simple. Most of us favor LIMITED social safety nets. Government workers and the Unions are huge constituencies. In order to get elected one side litteraly bribes its way in with promises of expanding transfer payments.

    Unions should stick to work place issues. It is amazing how I have become termed a hard core Union activist over my assistance and support for our Unions efforts to get rid of a completely arbitrary tool to rate employees.

  8. Beaker, nothing about this financial ruin that we're witnessing in the socialist economies should surprise you. Public sector unionism is at the CORE of the problem too. Their demands are seemingly ALWAYS met, and they're driving cities and nations into bankruptcy.

    It doesn't matter whether we're referring to the teacher's unions or the firefighters or the police unions, they're breaking the bank. Here in J-ville they've told the Mayor and city council to take a flying leap! The city's in HUGE financial trouble and they're (the unions) not going to budge.

    When this happens at a business, no biggie. The business folds and both parties are screwed. When it happens with public sector unions, ALL of the taxpayers suffer.

  9. I wish I knew you were in Jacksonville when I was sent to FLETC in Brunwick GA for a spell.

    The far left likes to scream about defense spending. Yet the EU counties managed to get into a mess without any large expenditures there.

    As far as government workers are concerned it is not easy at the Federal level. The problem is that despite what people think cronyism is even worse in government than in the private sector.

    The model of cheap health benefits and luxurious retirement benefits are outmoded in an era where we live much longer.

  10. "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."
    And then Obama signs that bill today which doesn't apply to Freddie Mac or Fannie Mae......
    does he think we're THAT STUPID? they created the PROBLEM, FELLA! Might want to clean THAT HOUSE, huh? UGH.
    But, then again, he picked idiots who clap for a foreign president who disses us in our own congressional halls.....
    I hope you find time to respond to my Friday post, I'd like to hear what you have to say :-)

  11. Good points Z, as usual. About taking our country back..I sent you a fantastic e-mail this morning. Make SURE you vote on it!

  12. Hope u had a sweet weekend my friend!!:-)

  13. Socialism and Keynesian economics are the bloodletting of the 21st century. Stupid ideas that have repeatedly done more harm than good. But the more they fail, the harder we try them again.

  14. Thanks Angel!

    RK isn't that odd? The more socialism fails, the more they try it. It only makes sense when you understand that hard core leftists hold to their beliefs with a religious fervor. Conservatives like us are conservative because it's been proven to WORK again and again!

    Leftists are members of a nasty little cult that fails over and over and over...

  15. Blessed Memorial day to ya my fellow soldier in the fight~!..:)