Thought Head: Death Spiral

Friday, June 03, 2011

Death Spiral

From a European friend -

If somebody would have said – let’s say in 1897 when Queen Victoria celebrated 60 years on the throne – that UK would be a 2nd rate or even a 3rd rate power in a number of decades and not even capable to challenge the Argentinean fleet he would have been laughed at or declared insane and sent to an asylum – this is food for thought if you take a look at the West today, America was regarded as supreme until only some years ago although its government had been running almost consecutive budget deficits for some 50 years – running constant deficits in itself is a sign of decadence, corruption and declining civic virtues.

America is in – or close to a situation of no return, even if they increase taxes which in itself is harmful in a globalized world they won’t be close to eliminate the deficits or to get it under control, one reason is that the politicians will continue to spend in order to try to win elections, the other reason is that the entitlement system in America is out of control, the combined unfunded liability of Medic care & Social Security is around usd 107 trillion in current value i.e. 7 times the U.S. economy and 10 times the national debt – entitlement programs account for some 60% of government spending and the politicians refer to this spending as non-discretionary spending which in plain English would mean uncontrollable spending which is shielded by laws written by Congress.

In Europe the entitlement situation is the same but the taxes are already in the stratosphere and on top of this the whole continent is in a demographic death-spiral

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Goodbye America
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Present, Past and Future – Changing Values and Consequences. The end of USA as Global Superpower
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Surviving Obama
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USA in Decline
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BUSH HATE
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Bush hatred is openly endorsed as a virtue and enthusiastically proclaimed. Liberals see a monster instead of a political opponent and multilayered issues as evil.
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Goodbye America

The USA will become another Europe but without its class, culture and history.
The USA has lost its way. The new Liberal super-majority in Washington will hasten our decline. The present euphoria of media and electorate for Barack Obama and the Liberal majorities in the House and Senate will soon evaporate as they make the current situation worse.
We have seen the best of Western Democracy - it was built on a system where politicians were educated and recruited from real life experiences in the private sector with the electorate overwhelmingly working in the private sector convinced that everything would improve over time depending on their collective efforts. To-day the only expanding business in the USA and Europe is the public sector plus increasing cohorts of welfare recipients. It is inevitable that the weakest countries in Europe are in dire financial straits and are having to be bailed out by the stronger European Union members. Social strife between countries and within countries will follow. Unionized workers will not want to tighten their belts and strike action with civil unrest will become commonplace. That will drag down the rest of the European countries in the Union. The USA is on a similar disastrous trajectory.
In 1940, the qualities possessed by the British were independence, self-reliance, individual initiative, responsibility, tolerance, voluntary service and respect for custom, tradition and authority, but without reliance on them. To-day Britons are almost the opposite and as a consequence Britain is very different. 40 percent of people in the UK now receive state handouts and the reflex response to any passing inconvenience is to demand the government “do something.”
Under Obama, the USA is on the same disastrous path, even though two-thirds of the electorate opposes what Obama is imposing upon them. Half of those in a bankrupt Britain after World War 2 wanted to go to a welfare state like lambs to the slaughter after escaping the Nazi jackboot. The socialists were elected with almost 50% of the vote to implement a 'cradle to grave' welfare state starting with the British National Health Service. Once in place, Britain has found that this welfare mentality is a crutch which can never be removed.
The USA is on an increasingly self absorbed moral decline. Because it does not have Britain’s history and culture, the longer term prospects of the USA are even more unappealing for those traditional families that have not become dysfunctional through free loading, divorce or alternative life styles. Thinking as an internationalist it is clearly better to spend $5 billion globally to effectively fight malaria which kills 1 million children each year than to spend an additional $1 trillion additional on health care in the USA mainly for the benefit of free loaders who have no intention of helping themselves. World citizenship is a more worthwhile endeavor than the narrow selfish interests of blinkered nationalism under either a Socialist (as in the UK) or Liberal ideology (as in the USA).

Surviving Obama - How to Navigate the Obama Wreckage

Under Obama, the national debt has increased to $12 trillion and will be $21 trillion by 2019. Even still Liberal Washington with Obama at the helm is now debating whether to create more social programs they can't afford.
The dollar's decline indicates that the United States is no longer the dominant force in the global economy. China is the largest creditor to a heavily indebted U.S. government. World living standards will grow faster than ours, as will global wealth. Capital will move abroad, leaving U.S. unemployment at high levels. That is the cost of Liberal ideology.
By 2030, China will surpass the U.S. in the size of its economy. Global power follows economic strength. Even still, Obama is willfully accelerating the decline of the USA as the global power. China thrives because it is hungry, dynamic, unwilling to accept failure and convinced that it should be a leading force in the world. That is why America thrived a century ago. Today, such hunger and dynamism are less evident in American life and are being replaced by a welfare mentality as Obama seeks personal popularity and ego satisfaction by being an apologist for what he perceives as US shortcomings and by ceding authority to the United Nations.
The next crisis has already started. The vast printing of money has begun to depress the value of the dollar. The economy will appear to recover from the subprime crisis and recession by mid to late 2009. It will though be the calm before the real storm as a consequence of Obama's wild spending. In the early part of the next decade, America will enter a depression, with stocks reaching new lows. Housing prices will not recover and housing will remain a poor investment. A global bull market will not return until the end of the next decade and by then everything will be worth much less in dollar terms because of its declining value.
Obama was elected to be President of the USA. What he has done is totally polarize the country - worse than any President in 40 years. The people who feel disenfranchised most are those who drive the capitalist engine which has made the USA the most successful country in the world. That is a disastrous dynamic.
Obama was elected as a do-gooder: audacity of hope, diplomacy, disarmament, income redistribution, climate change and international-back-pedaling. We will now reap the consequences. Obama is lost in knowing how to handle conflict throughout the world. Afghanistan will become Obama’s Vietnam. Obama has no answer to the Taliban or al-Qaeda. Do-gooders believe that everyone has good intentions. Such was Chamberlain’s belief when he negotiated “peace in our time” with Hitler in 1937.

President Obama

The swooning frenzy over Barack Obama as President of the United States is an artificially created absurd wave of self-deception. His cult following is bereft of reason and devoid of facts. He is a celebrity in the mold of an intelligent, articulate Paris Hilton. In no way does he resemble a statesman.
Each day in the age of Obama takes us further into lawlessness, situational constitutionalism and institutional derangement. We are turning into a banana republic where the "rule of law" is replaced by "the tyranny of the majority". The political machination of Liberals, in the name of an economic recession that they are manipulating is undermining our founding principles.
President Obama is accumulating massive power in Washington justified by the need to save the nation with a whirlwind of activity. He is recklessly over compensating, throwing trillions of dollars around for a quick fix which will be a millstone around the necks of future generations. He then dishonestly claims that the USA will arise stronger than before.
When traveling abroad, President Obama has an arrogant humility. He portrays a proud but flawed United States, using a refrain of past mistakes of his predecessor to generate personal popularity. He talks about the nation's darker periods of slavery and repression and its past sanction of torture that he has ended.
Chicago Politics have come to the White House. No president in the past 40 years has done more to polarize America so much, so quickly.
Afghanistan is sliding back to its pre-9/11 days that allowed the country to become a safe haven for al-Qaeda leaders plotting terrorist attacks. Obama’s soft shoe confusion will also be a disaster in neighboring Pakistan where nuclear bomb technology is available.

USA in Decline

The US and its citizens are addicted to debt much as a drug addict is hooked on heroin. Unless the US achieves rehabilitation, this failing alone will ensure that the USA will continue to decline relative to many other countries. Liberals are now firmly in control in the USA. In this political climate, there is no indication that our debt will not continue to increase dramatically. The modus operandi is to give a short term fix to all problems by dramatically increasing debt. The present financial crisis, itself caused by excessive debt is being fixed by even more debt. The burden for the few who pay taxes will become increasingly onerous and increasingly unacceptable for future generations. The best and the brightest will turn away from the USA, increasing the US relative rate of decline. Much that has been achieved in the USA since the end of the Second World War has been achieved by people not born in the USA. In future, the USA increasingly will not be the destination of choice for people with the most to offer. Instead it is the destination for illegal immigrants at the other end of the social scale.
The USA is considered ugly by the rest of the world because it makes no effort to control its gluttony. In the USA, 25% of the world’s energy is consumed by 5% of the world population. The USA also leads the world in obesity and in debt. The USA does not pay for its insatiable consumption. Despite its great opportunities, the USA has a high percentage of free loaders who pay little or no income taxes. They have become home owners through debt that they have not worked and saved to afford, through policies of US Liberal government. The ensuing tsunami is now engulfing the less fortunate people throughout the world, who are genuinely poor and are now having to suffer the consequences of our worthless paper debt instruments, while the USA takes on huge new debt to continue to feed its addiction instead of facing up to the reality of living within its means.

Bush Hate

The overriding question we face as a nation is what will we do when we no longer have Bush to kick around? We have little time left to address this question and to find a solution.

Hating the president is almost as old as the republic itself. Bush hatred, however, is openly endorsed as a virtue and enthusiastically proclaimed not only as a rational response to the President and his administration but also as a mark of morality.

Bush hatred is not a rational response to actual Bush perfidy. Rather, Bush hatred compels Liberals to reduce complicated events and multilayered issues to simple matters of good and evil. Bush hatred blinds Liberals to the other sides of the argument, and constrains the hater to see a monster instead of a political opponent.

Why do Liberals embrace all foreign oppressive governments as long as these oppose the West? One reason is that the death of communism has brought a dark liberation to Liberals in that they now feel free to champion any totalitarian group that is anti-western and anti-American. This mindset is particularly prevalent amongst self-styled intellectuals and the mass media.

Liberals now expect liberation from Barack Obama. He is on a pedestal and can do no wrong. As he assumes power, that too will change and the awful reality will set in.

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