The ‘liberal’ agenda — the operating model for the welfare state, spending more money, with more rules, and more elite do-gooders living at public expense — seems to have reached its brick wall.
I continue to be gobsmscked that the whole thing hasn’t collapsed by now. Indeed there seems to be some invisible hand holding everything up, at least for now, until it doesn’t. It’s not Adam Smith. Maybe God. I don’t know, but like the old saw says, something that can’t go on forever will end. Just what it will look like really is anyone’s guess.
In your closing paragraph, "a Ponzi Finance Scheme", sums up everything in todays essay. All of Europe and America (though not as bad yet) is living the same bad dream. Most of the BPR readers likely have assets to cover the rest of theirs lives. Those behind us, sons, daughters, grand children, are going to live through some tough times. God help them all.
You know Bill you could of said the same thing significantly more succinctly by just quoting the late great Margaret Thatcher: "The trouble with socialism is that you eventually run out of other people's money".
With the true economic conservatives driven from the Republican Party, there is no one to oppose the free spending ways of the Socialists on the left, and the King of Debt worshipers on the right. The numbers speak for themselves. Got gold?
You would think that governments whose spending has reached the point at which their national debts can never be paid would have a plan to cancel as much of it as they can as soon as they can; maybe simultaneously. After all, the handwriting is on the wall, as Bill has persuasively explained.
The US is already reducing SNAP benefits and other programs that benefit the needy and are brutally expelling individuals who have no lawful right to remain in the US, including refugees given sanctuary here by earlier Administrations.
But our current Administration, despite some economies to reduce literally the Federal government, continues to spend money it first has to borrow to wage war; to invest in privately owned firms and to concoct a business relationship benefiting a dictator who provides targeting data that kills our citizens and, to date, 82 of our very costly airplanes.
Very likely, it will be a Democratic Administration that will be obliged to take the steps to reduce the handouts, a task for which they are philosophically ill suited to perform. A major mess is a-coming
An interesting perspective. It also raises a classic political economy paradox: redistribution can initially build political support, but over time the costs of sustaining it may generate more opposition than the benefits generate loyalty. The system can eventually become trapped between those unwilling to finance it and those unwilling to give up what they receive. Perhaps the real brick wall is political as much as financial.
I have never asked for free money. I also never taken free money except I suppose Medicare is 'free money.' Though I'm pretty sure I've paid more than taken. It seems it all started with the 'genius,' Keynes, who provided a temporary 'solution' long ago. That 'solution' just allowed society to kick the can where the waitress cold make money if only society would spend. Obviously that concept has finally caught up with society who simply loved the idea of no worries, just spend, even that which one didn't have. Of course academics came up with the defense, Modern Monetary Theory, just another Keynes in my opinion. Hell it took one hell of along time to catch up, especially when debt accumulated to some 300 plus Trillion. Who cares about zeros as they are not comprehensible anyway. Now the game is,... some computer mind is far smarter than the simple human mind. We just need to spend trillions building it, yet still unproven in terms of profit. I read a study today showing that in the short term Musk's accounting makes more than he spends. His investments make sense. But overall we don't have any money! That's OK we used credit last time and it worked and in fact is has worked ever since Keynes suggested the idea to fight WWII. Now everyone 'knows' Artificial Intelligence is smarter than simple human intelligence, through experience with AI. At least it is smarter than any one human can discern, primarily because it is built by thousands of various 'scientists' and in this case there is only one evaluator.
The really really great thing about humans is they can always find an excuse to extend and pretend primarily through ignorance. On the other hand we may have reached trillions but we've already invented Quadrillion, Quintillion and even Sextillion so we have plenty of room for 'improvement.' However there is always a collapse at some point when a surprise exposes a few guys who got caught not adding enough zeros in time to surprise even the most ardent politicians.
I have yet to receive investing information personally, which may be routine. However, I have only once received an email asking me to look for this information on a substack. I was unaware I was supposed to have access to the substack. I was not told. Just today, I was offered a “free offer”, being unsubscribed. For something I am getting nothing, so in the spirit of your posts and view of life, this subscription will not be repeated.
I continue to be gobsmscked that the whole thing hasn’t collapsed by now. Indeed there seems to be some invisible hand holding everything up, at least for now, until it doesn’t. It’s not Adam Smith. Maybe God. I don’t know, but like the old saw says, something that can’t go on forever will end. Just what it will look like really is anyone’s guess.
Only God can answer that question. His sense of humor with the human race will come to an end someday. Bad news for the human race.
Jim
In your closing paragraph, "a Ponzi Finance Scheme", sums up everything in todays essay. All of Europe and America (though not as bad yet) is living the same bad dream. Most of the BPR readers likely have assets to cover the rest of theirs lives. Those behind us, sons, daughters, grand children, are going to live through some tough times. God help them all.
Jim Marshall
You know Bill you could of said the same thing significantly more succinctly by just quoting the late great Margaret Thatcher: "The trouble with socialism is that you eventually run out of other people's money".
Once Western Europe's native sons have nothing left to lose well, you haven't seen nothin' yet.
With the true economic conservatives driven from the Republican Party, there is no one to oppose the free spending ways of the Socialists on the left, and the King of Debt worshipers on the right. The numbers speak for themselves. Got gold?
100% correct.
Jim
You would think that governments whose spending has reached the point at which their national debts can never be paid would have a plan to cancel as much of it as they can as soon as they can; maybe simultaneously. After all, the handwriting is on the wall, as Bill has persuasively explained.
The US is already reducing SNAP benefits and other programs that benefit the needy and are brutally expelling individuals who have no lawful right to remain in the US, including refugees given sanctuary here by earlier Administrations.
But our current Administration, despite some economies to reduce literally the Federal government, continues to spend money it first has to borrow to wage war; to invest in privately owned firms and to concoct a business relationship benefiting a dictator who provides targeting data that kills our citizens and, to date, 82 of our very costly airplanes.
Very likely, it will be a Democratic Administration that will be obliged to take the steps to reduce the handouts, a task for which they are philosophically ill suited to perform. A major mess is a-coming
Until Politicians no longer get rewarded for spending money to bribe the people nothing will change.
When the Politicians change their clothes, watch out, the end will be around the corner
An interesting perspective. It also raises a classic political economy paradox: redistribution can initially build political support, but over time the costs of sustaining it may generate more opposition than the benefits generate loyalty. The system can eventually become trapped between those unwilling to finance it and those unwilling to give up what they receive. Perhaps the real brick wall is political as much as financial.
I think this is the most insightful post today.
I have never asked for free money. I also never taken free money except I suppose Medicare is 'free money.' Though I'm pretty sure I've paid more than taken. It seems it all started with the 'genius,' Keynes, who provided a temporary 'solution' long ago. That 'solution' just allowed society to kick the can where the waitress cold make money if only society would spend. Obviously that concept has finally caught up with society who simply loved the idea of no worries, just spend, even that which one didn't have. Of course academics came up with the defense, Modern Monetary Theory, just another Keynes in my opinion. Hell it took one hell of along time to catch up, especially when debt accumulated to some 300 plus Trillion. Who cares about zeros as they are not comprehensible anyway. Now the game is,... some computer mind is far smarter than the simple human mind. We just need to spend trillions building it, yet still unproven in terms of profit. I read a study today showing that in the short term Musk's accounting makes more than he spends. His investments make sense. But overall we don't have any money! That's OK we used credit last time and it worked and in fact is has worked ever since Keynes suggested the idea to fight WWII. Now everyone 'knows' Artificial Intelligence is smarter than simple human intelligence, through experience with AI. At least it is smarter than any one human can discern, primarily because it is built by thousands of various 'scientists' and in this case there is only one evaluator.
The really really great thing about humans is they can always find an excuse to extend and pretend primarily through ignorance. On the other hand we may have reached trillions but we've already invented Quadrillion, Quintillion and even Sextillion so we have plenty of room for 'improvement.' However there is always a collapse at some point when a surprise exposes a few guys who got caught not adding enough zeros in time to surprise even the most ardent politicians.
Rosemary Talab
just now
I have yet to receive investing information personally, which may be routine. However, I have only once received an email asking me to look for this information on a substack. I was unaware I was supposed to have access to the substack. I was not told. Just today, I was offered a “free offer”, being unsubscribed. For something I am getting nothing, so in the spirit of your posts and view of life, this subscription will not be repeated.