Wednesday, February 1, 2012

FOR OUR POSTERITY? « The Burning Platform

FOR OUR POSTERITY? « The Burning Platform

The problem with electing RP is he will do what he says he will do, namely cut the federal budget by $1T the first year. Carter was the last President to even attempt to reign in the federal bureaucracy, and we see how well he fared.

The first thing the bureaucracy will do is cause an immediate crash of all things holy and unholy. Remember, they are the largest unionized work force in the world. Drones and non-drones alike will be screaming bloody murder for someone to do something.

The best case for RP to get elected is for the wheels to come off the bus prior to the election, and for somehow public awareness raises to the level that we must cut public spending to pre-WWII levels adjusting for inflation and population and perhaps factor in real, not counterfeit GDP.

Even without bureaucratic sabotage, there will be a severe disruptive effect of cutting that much spending. Most people will not want to endure the remedy, and rather die from the disease of an out of control federal bureaucracy and deficit spending. Public sector spending has effectively crowded out private investment in this country and elsewhere. During a transition phase from all funds being funneled through the bureaucracy, to as little as possible, jobs will be lost, that will need to be made up for by the private sector. The best way to do this is to get rid of the Fed, maybe even a debt jubilee. I don't know what it will take to effect such a sea change.

If RP isn't elected, and an establishment candidate takes control, $2.4T in spending cuts over 10 years will be implemented beginning Jan, 2013. Republicans are already complaining that $700B is too much to cut from defense spending, so we may forego these cuts altogether.

With the CBO report released this week, at least candidates want be able to run around declaring how grand things are, and we're on the right track.

A sea change in an organized manner, is better than a deflationary depression, unless you ask a 1/10th of one percenter, who would rather see Rome burn to the ground than give up one red cent. I don't know if there's a gold standard in Hell, but they don't deserve one if there is.

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