Planting seeds of future social and economic crisis.

CRISIS! PATH TO TOTAL GOVERNMENT CONTROL 

PANDEMIC, SOCIAL UNREST AND ECONOMIC CRISIS

While many view the policies of the current administration as just poor judgement and incompetence that is not the case. It is a well thought out plan to move this country from a country of opportunity and freedom to one of total government control. A country were individuals do not count, it is all about implementing a system that will look more like feudalism than liberty. Worldwide feudalism.

We see the intentional uncontrolled migration across the borders of the world, not just in the USA, but into every major country. It is an intentional creation of a divided populace, the more divided, culturally, religiously and ethnically the more opportunity for government to become bigger and more controlling to deal with the chaos. 

With this huge influx of people we will see the breakdown of the social safety net, the healthcare system and the education system. The remedy will of course be more government control of all aspects of human life.

Add to this the climate debate which will again require more government control, more sacrifice by the common people, but unlikely to affect the elite decision makers.

Now we see the administration and the democrats in general embarking on a spending spree that will very likely end in a economic crisis. The debt, which no one seems to consider anymore, except that we see that interest rates to be now permanently near zero. They will remain at near zero because the government could not service the debt if interest rates were in the historic 5% range. This has been a tax on seniors and savers and a boon to speculative investors. Not the plan that encourages a stable economy. 

By the way, this condition has been in all administrations of late, both democrat and republican. It is unlikely that politicians are in control of the direction of any monetary policy.

The alternative to raising interest rates, which would cause a debt crisis, is inflation. It is likely we will see a permanent uptick in inflation. Historically inflation can only be brought under control by drastic action. That action has been raising interest rates, but it is likely that in this new era it will be the declaration that capitalism is a failure and only a totalitarian socialist government will produce economic stability. Possibly a change in currency with a severe devaluation and other radical solutions.

The New Democrats have embraced the Modern Monetary Theory, which believes that deficits and debt are not relevant nor to be considered. The plan is to control all aspects of the economy by government spending and taxes.

With this theory they can spend on social programs without restraint, debt, deficits and even interest as far as the government is concerned would be eliminated. They also believe that to restrain the economy from overheating, taxes, licenses, fees etc would be raised to restrain inflation and also to target the wealthy to achieve income equality and social justice. They also propose to adopt Asset Taxes, starting with the very wealthy, but as one could imagine it would soon apply to anyone with assets.

This theory is without simple common sense and attempts to defy the laws of simple economics and human nature. Implementing such a policy would destroy the economy in short order. Their policies would force people to shift assets from paper to hard currency and simply shut down much private economic activity.

Of course, that is precisely their goal, no private economy, it would be a 100% Government controlled economy which would lead to an economy like Venezuela or Cuba.

I suspect that these policies will culminate in a worldwide economic crisis unprecedented in history.

originally published: Aug. 13, 2021