So where are we, politically speaking?
Well, I'll tell you where we aren't.
- Hope for Change has fizzled, despite the new leaders promises, intent and attempts.
- We haven't ended any wars.
- We haven't fixed our economic crunch.
Oh blah blah blah. Its easy to complain about the obvious. I'd like to point out something nobody else seems to have noticed.
Summary: Our market's tendency to go bounce and self correct with a horrible crash is a normal part of growing our free enterprise. Please stop trying to fix it.
I've been more interested in the US free market since I became aware of politics and the political / marketing machines of rich men and the companies they run. Because of this I've begun to pay attention to how the machinery of our economy functions.
I've made a striking realization. Everything that has happened in the past, good, bad or indifferent is all part of the process of learning how to operate a healthy economy.
That's right folks, the great depression, the wars, the booms and busts are all about us learning how to use money and power in healthy ways. While its true that very few are actually learning, its apparent to me that many have and many more will learn from these mistakes.
On a slight tangent, its apparent from world politics that socialism applied to government doesn't actually work and like any other high idealized system, corruption overtakes the ideal and eventually the power centralizes in a single or few figures who become elite dictators that abuse power to their own and their friend's benefits. Even the US has been subject to that of late. Even though we claim freedom and fairness, the fact is, with bipartisan politics, we are all subject to the whims of a few rich and powerful individuals. It just takes them more work to manipulate us and generally requires some sort of leverage. In the case of GW, it was fear of "terrorists," which translates to fear of death by mad bomber.
China isn't socialistic, they are ruled by a powerful elite and are thus a dictatorship. Even the US, even though it has hundreds who fight over control is still controlled by an elite few, its just a lot more rulers than most places in the world. Don't talk to me about elections: many are monkeyed with and even if they aren't, have you seen how much it costs to win an election these days? If elections were truly free of bipartisan politics, everyone got equal TV, radio and Internet time and there was a runoff structure between all candidates things might be more fair. But as it is: if you aren't Elephant or Donkey, you don't stand much of a chance running for office.
Back to the subject at hand. One thing that has historically been mostly free, was our capital market. There were rules and guidelines in place to prevent the government from owning businesses, from interfering in free trade (at least within the borders), and to prevent unfair business practices. In the past, when things went awry, the government would generally let the markets correct themselves. Making a whole lot of people poor was often a very good way to teach them how to handle their power and money more wisely. Throwing them in jail when they scam people was just a way to show others how to be more healthy. The government protected individuals from losing all their money, but never covered the financial game players who made huge mistakes.
But these days, we have no patience. We want to solve perceived problems right away, to avert "catastrophe," to control the markets so everyone can be "safe." By definition, that is not a free market.
The great depression was brutal for many United Statians (as opposed to Americans which is too broad a term in my opinion). It took a long time to come out of it and it taught a huge number of people about the unhealthy "boom" mentality. Many people realized then, that running an economy on too much debt produces furious market activity but also creates artificial highs which eventually have to tumble down.
Its been eighty some years since then and we've had on the order of six recessions (don't quote me, I'm guessing) since then and many still haven't learned that lesson. Perhaps its just that each successive generation has to learn it all over again. Honestly, I don't know, I only know that this recession is the first time the government has stepped in and socialized economic losses for corporations.
Seriously though: how can people learn to be more frugal, rely more on cash than credit and be more careful with their money if you don't let them fail? Its like teaching a child to ride a bike with training wheels and letting him ride it that way until he's twenty-two and then putting him on a unicycle on a tight-wire over snake canyon. Its instant death.
What do you suppose is going to happen with this bailout?
I've projected forward and I see some things that are likely.
The government is going to move much deeper into debt. Printing money will cause inflation and prices will go up. Many people and corporations bailed out by the government will continue to make mistakes because they will fail to learn the lessons that failure would have taught and will end up needing more and more money to stay afloat. At some point the government will have to say "no," and they will fail, the way they should have originally.
The government may decide to take over some of the companies that owe the taxpayers lots of money. Government owned corporations is another way to move away from freedom and is a slippery slope with a very questionable valley.
Its funny, you know. Little Honey has come in from the rain drenched to the skin. This is a first for Little Honey, she is very good at dodging rain drops. I'm sitting here writing about the smelly government and its smelly activities (which in all honesty are attempting to avert disaster, but are destined to fail) and this wet cat is smelling up the room while she desperately tries to lick herself dry. The symbolism doesn't fail me, it never does.
The US economy is like a wet cat. The question is: are we going to learn our lesson and come in where its warm and dry, and allow ourselves to feel the freezing cold, or are we going to sit out in the rain attempting to lick ourselves dry while the rain pours down? Things cannot stay the same: we have proven that the market was not stable the way it was. Yet everything we are doing seems to attempt to do just that: keep the status quo.
After the tumultuous Twenty Oughts, the world governments are going to be laden with so much debt that things may all balance out with respect to inflation. But I think eventually these governments are going to have to default on the loans because eventually they won't be able to make the payments anymore. I bet the rich legislate themselves out of the default government's defaults and the poor and middle class end up losing their money.
There is a way out of this mess, but it requires a great leap of faith from the United Statian people. It requires them to let go of their desire to protect people from themselves and stop fearing death. That's quite a leap, but perhaps after all this B.S. goes down, people will be ready to face the truth and begin to accept the negative feedback they need to become more healthy and more efficient.
I pray for that.
Causes Brian McKee Supports
I support the cause of peace via peaceful means.