Happy May Day weekend everyone! Just a salutation to get you used to the observance of a communist based holiday in light of the fact that the process to turn the U.S. into a totalitarian state is accelerating under our new comrade Obama. With the military becoming more engaged in our domestic lives (natural disaster supervision), CEOs being fired directly by the president, government arranged bankruptcies, whole companies nationalized under the guise of economic stability, gun confiscation on the horizon, and trillions of non-existent dollars stolen by Washington to bailout the economic dregs of our society, I would say the Obama Administration is setting up a situation where Americans will be so poor and indefensible that our only recourse will be to turn to Comrade Barack for sustenance. And I haven’t even included the administration’s planned socialized medicine scheme.
Of course, the mainstream media has gone gaga over Obama’s first 100 days. It is no surprise since our media elites are employed by the same corporatists who stand to benefit the most from our neo-fascist economic arrangement. Yes, I said neo-fascist and I meant it. You see a major component of fascism as exemplified in Mussolini’s Italy and Hitler’s Germany is a concept called state capitalism. Companies are still privately owned but they work very closely with the central government to ensure the economic, social, and military goals of the country are met. For example, a lot of folks became very wealthy producing armaments for the above mentioned dictators during World War II. Did they have a choice to manufacture anything less violent? The answer is no because the state demanded it, but they were allowed to share in the benefits of their toil. Similarly, Washington has made a plethora of decisions – what kinds of cars Chrysler will make, how much money banks will have available to lend, who will be forced to purchase Merrill Lynch, and who heads General Motors? – all in the name of what is good for our economy (state). And of course, private shareholders will still share in any profits made. However, given the business acumen of governments in general and ours in particular there probably won’t be many profits to be had.
Beyond forming close ties with business, another technique of totalitarian regimes is doublethink. Well defined in George Orwell’s famous novel, Nineteen Eighty-Four, doublethink is the act of simultaneously accepting as correct two mutually exclusive beliefs. This week the president practiced doublethink. He claims his administration is going to cut taxes, lower health care costs, stabilize Social Security, and cut the deficit in half while at the same time cheering Congress’s approval of his $3.4 trillion budget.
First of all, yes, the president’s budget does cut some taxes. However, the treasury will have to borrow more to finance the cuts. This further expansion of the money supply will inflate prices negating any benefits a taxpayer may realize from a tax cut. So Mr. Obama are you really lowering the tax burden on working Americans?
Then there is Obama’s health care proposal. He claims it will lower costs in that area. But, even the best estimates of the president’s proposal put new costs between $600 billion and $1 trillion over ten years. That means we are looking to spend an additional approximately $80 billion per year over and above the $2.5 trillion we already spend annually. How can the president say he is going to lower health care costs when his plan will actually increase them?
For Obama to claim his plan will lower health care costs is humorous, but when he talks about stabilizing Social Security he is downright hysterical. How is he going to stabilize a system that has at least $50 trillion in unfunded obligations? Does the government have the money for adequately funding the retirement of baby boomers in another fund somewhere? Can Washington tax the workforce to raise the money? Demographically is the ratio between the numbers of workers to retirees going to change for the better? Is there a lottery large enough for Uncle Sam to win to fund the program? The answer to all four questions is no, no, no, and no! The Social Security administration makes Bernie Madoff’s Ponzi scheme look like small potatoes in comparison. Social Security is dead and for Obama to claim he will stabilize the system is doublethink.
Lastly, the president has stated many times that he is going to cut the deficit in half by the end of his first term. There are going to be several factors in his way of accomplishing this. For one thing, as unemployment continues to spike tax revenues will drop thereby increasing the deficit. Then there are the costs associated with Obama’s plan to “fix” health care and Social Security. As we all know governments are notoriously famous for cost overruns, so we should assume that even the most liberal cost estimates of these plans are understated. Lastly, given our politicians propensity for spending, we can reasonably assume that spending will naturally rise over time. Additionally, who knows what natural disaster or new war will confront us and require future spending?
The president is saying one thing, but he is an intelligent man so must be thinking another. How can he believe he has the ability to fix these problems given the treasury is broke, we are in depression, and Washington is filled with big spenders and grandstanders? Perhaps he is delusional and it is manifesting itself in bouts of doublethink? After all that is a characteristic of totalitarian leaders.