Thursday, April 15, 2010

The government bubble

How is it that those from the Austrian school of thought have been able to accurately predict all of the major economic crises over the past 20 or so years and they are still given little creed in the media or the government. Nixon was right, we are all Keynsians now but we don't have to be. Peter Schiff, Gerald Celente, Lew Rockwell, Ron Paul and several others have been able to accurately predict what has happened to us over the past 10 years and have made some dire predictions if we continue on our current course and presently they are spot on.

Based upon that line of thinking - does anyone really believe that what the government has done or is doing to fix our problems is working? Obviously there are some but because his omniscience Pharaoh Obamses I still resides at 1600 Pennsylvania Ave. But, there are many of us who are still waiting for the other shoe to drop. There are two things that I am waiting to happen:

The first - the government will continue to grow, continue to stink at everything they do (I need to come up with a term that means essentially the opposite of the Midas touch...suggestions?) and the productive side of the economy will continue to shrink. We will continue to spend, borrow, inflate and not tax enough (I say not tax enough not because I favor that course of action - what I mean is we can never tax enough to pay for all the entitlements, programs, bureaucracies, wars, etc) and the government "bubble" will finally pop.

That brings us to the second. There are a few people who are fighting mad, but for the most part this "revolution" has been a peaceful one albeit a losing one so far. When the government stops cutting welfare checks, or they cut a welfare check for $1000 and that only buys you a loaf of bread instead of a months living, then its going to get ugly. As Gerald Celente "when people lose everything, and they have nothing left to lose, they lose it." That is when you are going to want to get out of metro areas and have your gun and ammo stashes ready. When all those that are on the dole are essentially cut off I believe that is when things are going to get incredibly violent.

The people that are protesting and writing their senators and donating to the campaigns of new political candidates still have a lot to lose. They are trying to stop the hemorrhaging. The irony is that those who are begging for more government and supporting the growth of government are going to be the ones taking to the streets in violence, not the blessed tea partiers.