There comes a point where you just want to throw up your hands — or in this case, start drinking heavily.
Last night was one such occasion.
Let’s dispense with the easy part of the proclamations made by the idiot-in-chief first: Gun control.
The entirety of Obama’s polemics in that regard, arguing “these (dead) people deserve a vote“, comes down to the premise that criminals will obey the law. But we know this to be false, which is why we call them criminals.
Specifically, the ugly murder of the young woman in Chicago who performed in DC just a few days before she died, in a city that boasts of some of the strictest gun laws in the nation, makes the point: The gang-banger who shot her didn’t care that it was illegal to possess the gun, and what’s worse is that law-abiding citizens, who do follow the law, were unable to legally possess the only device known to be effective in stopping said gang-bangers — that is, a gun.
The facts on this point are simple: It is disparity of force that allows criminals to get away with most of their crimes, irrespective of whether those criminals are the “small tyrants” such as gang-bangers or the really big ones like Pol Pot and Hitler.
Never forget that Adam Lanza, the accused (and now dead) shooter in Newtown, stole his weapons by murdering their owner. There is no law that would have been effective in stopping him from doing so.
The rest of OuchBama’s speech could be summed up as one line: The cost of everything is going up.
He at the same time cheered some of those things (stocks and houses) while decrying the others or outright lying about them(medical care, cost of living generally, etc.)
Then he advocated for a 25% increase in the cost of labor at the bottom end through a hike in the minimum wage from $7.25 to $9.00.
But why is the cost of living going up? Remember this law?
The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shallmaintain long run growth of the monetary and credit aggregates commensurate with the economy’s long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.
The law says that the Federal Reserve shall make policy such as to produce stable prices.
That is, neither rising or falling.
Yet for 100 years, serially, in virtually each and every case, The Federal Reserve has done no such thing, as demonstrated by its own “inflation” data. 2% “inflation” is not “stable prices”, never mind the historical fact of alleged “inflation” that has averaged closer to 3%.
And that’s assuming you believe the data, in which it is claimed that health insurance, which incidentally the BLS says was up 9.9% over the last 12 months, is only 0.656% of the average family’s expense profile.
1/2 of 1%? Really?
The easiest way to lie about what’s going on in people’s economic lives is to simply bury the assumptions you use in your data so that nobody finds it, and then point to that data and say “look, everything is just fine!” The common word for this islying.
Whether the issue was the minimum wage, the cost of college and the crushing debts being taken on by our young adults as a consequence or health care, Obama’s “answer” was the same — emit more credit into the system in some form or fashion. The problem with that “answer” is that this is exactly how we got into the mess in the first place, while the architects of that mess were standing behind the microphone and seated in The House, furiously pointing in every direction instead of taking responsibility for their own actions and inactions.
There is no “growth” answer to a moribund economy when you have intentionally created false demand by pumping cheap credit. When you build an economy on that which is not real, you cannot make it real by waving your hands.
Rand Paul delivered an interesting response in the Tea Party Express SOTU rebuttal last night, but again the utter refusal to deal with the drivers of the issue were evident. The so-called “Penny Plan” is a high-sounding idea that is at its core a fraud for two reasons — first, because Congress cannot compel a future Congress’ actions and second, because exponential growth mean that linear projections, which the “Penny Plan” is based on, are inherent mathematical frauds.
There is only one way to stop the destruction of our economy: An immediate and permanent cessation of deficit spending. Not 5 years from now, not 10, not 30 or 40 — now.
The driver of our deficit spending is all centered in health care. And it is the monopoly practices in the entire sector, whether it be in drugs, devices or service provision, that is driving that behavior. “Rent seeking” doesn’t work if you can’t enforce your demands as the market undercuts your attempts to extort more than a fair market value for your good or service. But when Juanita the illegal Mexican invader can come into this country 8 months pregnant, barefoot and addicted to drugs, dropping a $2 million NICU bill on the taxpayer, every pig up and down the trough can extort their slop from everyone in the country.
Likewise, when pharmaceutical companies can force Americans to pay for the development of every drug they develop while effectively giving away that R&D to the rest of the world, they effectively extort that money from all of us.
I have spilled much digital ink on the nuances of this problem in addition to dedicating a large part of Leverage to this part of the problem. That’s because if we don’t deal with this problem none of the rest matters; this black hole is literally eating our government and economy alive!
There are only three actions that will stop the spiral:
- An immediate stop to deficit spending.
- A permanent and immediate stop to the monopolist behavior in the health-care system.
- Actual enforcement of The Fed’s “price stability” mandate, with prison terms for non-compliance.
We do those three things, and we do them now, or our nation’s economy and government financing mechanism dies.