If We Blow It Up Again It Will Blow Up Again
By: Dr. Robert R. Owens
Back in 2007 when I was speaking of the crash to come I noted that we really didn’t have to worry because our fearless and infallible leaders intuitively know the remedy. When the bubble bursts they will blow up another bubble.
The absolute triumph of Keynesian economics in America and the West has never been more on display than during our rocky journey through the Great Recession. An economic contraction which our leaders say is over and those of us who work and live in flyover country know is still grinding us down to the new normal. TARP was going to save the economy. It didn’t. President Obama’s porkulus stimulus was going to save the economy. It didn’t. QE 1 and QE 2 were going to save the economy. They didn’t.
Then along comes QE 3 with an open ended commitment to pump 85 billion per month into the economy, and presto-changeo alakazam and miraculously the stock market is breaking new highs and the real estate market is beginning to revive. Unemployment keeps inching down and even the Neocons over on Fox are telling us the cratered economy is showing signs of life. It turns out if you magically create trillions of dollars and drop them from helicopters across the country there seems to be more money blowing in the wind. As one very profitable prophet once said, “It doesn’t take a weatherman to know which way the wind blows.”
Hang on to your hats because a booming economy has to become part of the Obama legacy so that the transition to a centrally-controlled economy can ever be hailed as the prescription for success. Just as the booming economy of the 90s is constantly brought up as “The prosperity we experienced during the Clinton years” so to if any politician ever attempts to restore economic freedom, or when there is another crash it can be blamed on too much regulation, a pathological fear of deficits, and return to the old days of greed and avarice.
Those of us old enough to remember the Clinton years should know that it was the peace dividend and the Tech Boom Bubble which fueled the prosperity of the 90s. We should also remember that it was a phony peace dividend since our military was engaged in interventions around the world during Clinton’s depredations in the oval office. We should also remember that the Tech Boom flew through the air with billions in stock values for companies that made no profit and eventually delivered not prosperity but the crash of 2000.
Our Constitution was not written to be not a living document that evolves over time. The words were never meant to take on new meanings with every passing generation. The accumulation of case law and judicial proclamations was not meant to supplant the written political contract that the Sovereign States individually decided to ratify. However, contrary to the oft stated desires of the Founders of our nation and the Framers of the Constitution the United States has evolved into a behemoth bureaucracy. In all bureaucracies instead of the best and the brightest rising to the top those who learn to pull the levers the best end up controlling the machine. Often the official leaders are merely telegenic front men for the powers behind the throne. The grifters who have gained power through elections filled with ineligible voters, outright fraud, gerrymandering, and a two party system where-in Progressives control both parties use the living document ruse to turn the Constitution into a dead letter.
Crony capitalism has replaced free enterprise. Just watch the big gaming table at the New York Stock Exchange. Its volatile swings are dictated not by innovation, profits or production they are instead moved by real or projected government actions. Will the Fed keep creating money out of thin air? Will the EPA impose Cap-N-Trade? Will the imperial presidency use a foreign adventure to grasp more power? The banks act as willing accomplices of the Fed borrowing money at 0% interest and buying Treasuries at 3% helping to maintain the fiction that we aren’t monetizing our debt and printing our way to prosperity. The foreigners who used to crowd the treasury auctions know what is going on. Today the biggest purchasers of American debt are American banks using the Fed’s funny money.
How many times must this Ponzi scheme economy show itself for what it is? How many times must this self-serving Progressive cabal be exposed for the hypocritical central-planning neo-fascists that they are? How many articles like this must be written before enough people wake up and do something? We glory in the American Revolution. It overthrew tyranny and established personal independence, individual freedom, and economic opportunity on a scale that had never before been seen in the world. This is something worth celebrating. However, the counter revolution has been in progress since Hamilton founded the first bank and John Adams threw his opponents in jail. The cost of freedom is eternal vigilance, and today’s generation may be too busy watching the game to notice their country is being transformed into something they won’t recognize by the time they get up for their seventh inning stretch.
Any semblance of a freely functioning economy has vanished since Progressive leaders like FDR, LBJ, and BHO birthed government control and intervention as an 800 pound gorilla on steroids. The mirage of false prosperity is once again raising its crowned head out of the sea of financial calamity it created with the last bubble. A new bubble is forming and happy days will soon be here again with a chicken in every pot and a flat screen in every home. How many of our fellow citizens will be swept up in the coming Obama Boom? How many will be devastated when it all comes crashing down again?
The too-big-to-fail friends of the government will be made whole. The perpetually re-elected and their handlers will have their golden parachute pensions and plush jobs on K-Street and at Fannie, Freddie, and crony filled board rooms across the country. The only ones hurt will be those who do the real work, those who play by the rules. When the new bubble blows up the remedy is ready made: we’ll just blow up another bubble. How could this ever go wrong?
Dr. Owens teaches History, Political Science, and Religion for Southside Virginia Community College. He is the author of the History of the Future @ http://drrobertowens.com © 2011 Robert R. Owens firstname.lastname@example.org Follow Dr. Robert Owens on Facebook or Twitter @ Drrobertowens