BERNANKE IS IN PANIC MODE « The Burning Platform

Bruce, you left out this gives the 1% more time to loot and secure their fortresses, replete with provisions and armed security. The police state apparatus will also have more time to prepare buying hardware.

The less fortunate have more time to prepare, as you mentioned, although surviving The Crunch is going to be difficult. The oligarchy is the only winner of QE3.

There are only two end game scenarios for the Fed's QE to infinity, government cuts it's deficits which allows private investment to flourish or everyone either works for the government or is supported by them. Since it isn't structurally possible for the feds to cut spending, then government of, for and by the people will become, the government is the people. Not that it's such a bad idea in theory. The difficulty is in getting anyone to do any work, but I suppose there are those who will work for the sake of it. Don't expect to much in the way of superlative effort, except the C level execs and politics.

As we transition to this state run society, how do we get everyone on the government payroll that is currently doing work in the private sector? According to Wikipedia, http://en.wikipedia.org/wiki/Economy_of_the_United_States#Employment

8% of those employed are in public sector jobs, not counting the percent of employees working for public sector vendors.

Also, from http://en.wikipedia.org/wiki/Government_spending#United_States_of_America

In 2010, public sector spending was 42% of GDP at $6.134 trillion whereas in 2001 it was $2.293 trillion, or slightly less than 20% of the GDP.

So, while we're headed in the right direction as percent of GDP, which will tend toward 100%, but we know the employment numbers haven't improved, but are worse.

As we pursue this policy of government is the people, which we've been hearing from the left for some time, culminating in this year's DNC, we have to wonder, again, how do we improve the employment numbers? It's the same wealth disparity issue as the crony capitalist model. The crony socialist model tends to aggregate wealth at the very top. So, we really can't address employment without addressing wealth disparity, not by creating more of it by destroying the middle class, but by a tax code which only allows a personal deduction and that's it. A wealth tax can also be instated, not to exceed an amount equal to a percentage of a reasonable ROI, so as not to be confiscatory, but neither allow hoarding.

If we can't cut federal spending, then it will consume us. I think that's a given. Whether it destroys us, or not, is another matter. The societal issues can be handled by addressing wealth disparity, which is a must in any event, or we can get out the pitch forks now, and not allow the natural course of events to work in favor of a tyranny.


BERNANKE IS IN PANIC MODE « The Burning Platform