economic kiss of death: obama style

8/9/2019 Economic Kiss of Death: Obama Style

1/19

13/05/2010 05:21:00

While it may appear that the Obama Administration has

embarked on a totally different course from other

Administrations, the fact of the matter is that it is simply a

continuation of an agenda that has been operating in this

country, to one degree or another, not only for decades, but formuch, much longer.

The seeds of the destructive nature of this present

government's policies predate the ratification of the Constitution,

but of late those seeds have began to bear fruit, a vile,

degenerative fruit that places the future of this country, its people

and their liberty in the utmost jeopardy. The eventual effects of

this governments policy will be chaotic in nature and affect everyaspect of our lives. As stated, this course is not a new one, but

one that has been gradually implemented, whether

conscientiously intended or not, by a political mindset that

promotes the consolidation of the powers of all government into

the hands of the political class.

The ideology has morphed little since the time of Hamilton,

the central theme is an all-powerful government, whether

Monarchist, Mercantilist, Consolidationist or Socialist in nature.The core of this ideology is that all power rests, not in the people,

but in the government. The methods to achieve such a

consolidation of power have been varied, but primarily rest within

the sphere of monetary economics where a political economy can

be produced and expanded to the point of complete government

control.


2/19

While it is not a recent development, the Obama

Administration has embarked on a very definite path toward

controlling, either directly or indirectly, the means of production

in this country to an extent that has not been seen previously, as

such, the distortions which already exist due to past governmentintervention in the markets will become more exaggerated and

new distortions will be created. As the distortions increase so too

does the chaos and as this happens those within this

government, without a clear explanation of the causes or

solutions to the problems it creates, will simply continue on the

same chaotic path with even more vigor.

Upon this path lay eventual price and wage controls, they

are inevitable. The entire system employed by this government,

fueled through a total fiat currency, is built upon an ideology that

not only ignores the principles of sound monetary economics, but

also must ignore such principles. Of course, one of the major

issues of such policies is that eventually they become not only

cumulative in nature, but also self-perpetuating. The necessity of

further government intervention simply becomes unavoidable. A point is reached where the government has no alternative

but to gear-up its efforts to combat the effects of its own policies,one of the indicators that the government has lost control of the

actual economic when it is forced to actually seize control of

businesses, the means of production within various sectors of the

economy, especially the financial sector. As stated before, this is

not a new path, but one that has gradually been enlarged to the

point where we now find ourselves.


3/19

While there are different definitions of Socialism, the fact is

that the common thread throughout all such definitions is

increasing necessity of government controls and what amounts to

de facto ownership over the means of production and distribution

of goods and services. It is the governments ability to gain andthen exercise control over economic matters that increasingly

cause markets to lack the ability to adequately calculate

economic information in business decisions. This stealth form of

Socialism is insidious for it gives the general appearance that

government planning is necessary to maintain economic market

viability when just the opposite is true.

When government policy encompasses the power to actually

determine the manner in which economic functions are expressed

in the markets then the entire definition of ownership eventually

falls under government control since the government is able to,

through legislative acts and non-legislative statutes, determine

the actual use of property, as well as the disposal of such

property. The economic movement of goods and services are

increasingly swayed by government policy and regulation, as such

there is, in a very real sense, a transfer of ownership from the

private sector to the public sector or government. While itappears that there is private ownership within the economy, in

actuality that ownership is only nominal since it has been

effectively transferred via such legislations and statues.

Essentially, a nationalization of economic functions has gradually

taken place where government controls and mandates supercede

the ability of control over property rights traditionally thought of

as being solely owned through the determination of actual title to

goods and services by individuals or companies.


4/19

Such gradualism toward a Socialistic economy has, of

course, been accomplished under the name of capitalism, the

government allowing for a degree of capitalistic traits to be

maintained to continue the ruse. Essentially, while it appears that

actual private ownership is legally maintained the fact is that dueto the legislative and mandated controls, private ownership is

actually only maintained as long as the legal restraints on that

private property are fulfilled by those who claim such private

ownership. If the legal restraints are violated, which is a rather

simply matter for the government, at any level, then the

government can step-in without any consideration of what should

be protected private property rights.

It must also be understood that the actual definition of

private property and the rights that protect such property have

gradually been diluted, being now dependent upon the allowances

of government legislation. It is generally accepted by the

population that their property is subject to potential intervention

by the government, whether that intervention is through

restrictive regulation, increasingly heavy taxation, or more

drastically, the potential for forfeiture to some government

agency. No longer is allodial title to private property sacrosanct,but all title to property rests solely at the political and

bureaucratic whims of government. Gradually, what has been a

mixed economic system is being transformed into a completely

Socialistic economic system, though it will never be described as

such.


5/19

Through the last century and a half, this economy has gone

from a free-market to a mixed economy and is now moving

toward a completely quasi-Socialistic economy that is

characterized by government corporatism and economic tyranny.

The consequences of such a transition however, will not be assimple as the political class envision, the resulting chaos

stemming from this transition has the potential of destroying the

political superstructure as it now stands. Under the mixed

economy that began in earnest during the 1930s the system

requires intervention by government; as stated, it eventually

becomes inevitable that more and more intervention is required

to maintain the system.

While under a mixed economy, the means of actual

production and distribution are maintained privately, but are

subject to government control; this continues until the effects of

such intervention creates an increasing need for more

government intervention, so much so that economic distortions

eventually require the government to intervene even more into

economy to the point that it must take drastic measures to

maintain the economy. Such measures always fail to accomplish

the stated purposes, as such more measures are required to keepthe system afloat. As economic chaos increases, the uncertainty

of the public is used to the advantage of the government, making

it politically palatable for the government to propose more

intervention, leading to more chaos requiring more intervention. As this government takes upon itself responsibilities that are

normally associated with the markets, it is the government that

ultimately decides how goods and services are created, used and

disposed. Eventually, of course, such interventions bring aboutsuch distortions in the markets that it becomes impossible for the

government to reverse the effects of such distortions.


6/19

We have already reached the point where the government

must begin to institute certain controls to maintain the system it

has created. Such controls will come in the form of a greater

degree of manipulation of wages and prices until the manner in

which the division of labor is determined in the market iscorrupted and non-functional. The mere act of buying and selling

is no longer governed by the markets alone, but by the legislative

policies of government. As the intervention continues, at some

point the right to bid pricing on a good or service or the right of

ask pricing no longer applies, this happens because of the

controls that the government institutes and must institute to keep

a semblance of functionality within the economy. This however,

only exacerbates the problems associated with continued

economic distortions until shortages begin to appear within the

market.

The Obama Administration has already given plenty of hints

as to what is in store for our country. Recently, Mr. Obama stated

that: Were not, were not trying to push financial reform because

we begrudge success thats fairly earned. I mean, I do think at a

certain point youve made enough money. But, you know, part ofthe American way is, you know, you can just keep on making it if

youre providing a good product or providing good service. We

dont want people to stop, ah, fulfilling the core responsibilities of

the financial system to help grow our economy.

J. Kenneth Galbraith said: "There is a widespread notion that one of the most primitive

of modern ideological choices is whether a government shall beKeynesian or not . . . no present or future administration really

has the non-Keynesian choice."


7/19

As the future will prove, the Administration will engage in a

soft form of wage and price controls, but even in the soft state,

such controls will ultimately be devastating in terms of economic

functions. Such destructive attributes associated with wage and

price controls eliminate the rights of ownership in the privateeconomy. It is a de facto form of Socialism that has all the

characteristics of a Socialistic economy in everything but name,

all which remains of free market capitalism, is an empty shell. Such controls deprive those in business from the use of their

capital freely, the uses ultimately being determined by the

various measures implemented by government. The government

interferes with the natural economic market functions,

interjecting conditions and restrictions on business to the point

that businesses can no longer use their capital in the most

profitable manner possible. The limitations on profit filters

through the economy, diverting resources and redistributing

those resources in ways that cause economic distortions. Now it must be understood that such controls have been in

place for decades, but with the election of Barack Obama, the

goal of transforming the United States into a Socialistic society is

closer than ever. It is clear, not only by the actions and the words

of Obama, that the intentions of the Administration are far fromwhat could remotely be considered Constitutional, or even

American for that matter, but it is also clear that Obama is

following a well-beaten path of Socialistic ideology that has

plagued this country since the period of Lincoln.


8/19

The entire impetus from the period of Lincoln to Obama has

been, with little interruption, a path of the consolidation of a

nationalized government with the power to control every aspect

of the lives of individuals. In order to do this it was necessary for

the free-market to be completely destroyed and a system ofcentralized planning be implemented. The first barrier that had to

be removed was sound money, after that it was necessary to

implement a form of economic theory that would not only allow

the government to gain control over the economy, but would

make it necessary for it to gain control through the gradual

destruction of monetary and economic functions that operate

according to free-market principles.

Keynesian economic theory was, without a doubt, one of the

single most important tools in the Marxist agenda for this

country. As Joan Robinson, a Keynesian economist stated: the

differences between Marx and Keynes are only verbal. The

agenda is to control, not necessarily to own all productive and

distribution avenues within this country and to do that it is of

primary importance that the government bring about a certain

degree of disruption in the economy. Such a disruption, whether

intentional or not, would make it necessary for more and moregovernment intervention into economy and social matters. As a former Keynesian Economist, Dr. L.A. Hahn stated: For

it [the Keynesian view] presupposes an economy whose members

do not see through the changes brought about by monetary or

fiscal manipulation or as some might say, the swindle. Above all,

it presupposes that people are blinded by the idea that the value

of money is stable by the "money illusion."


9/19

It is indeed an illusion, there is nothing real about the

Keynesian economic foundation upon which this economy now

rests, nor is there any reality within the fiat monetary system

that keeps the government expanding. The key to ability of this

government to expand its power, abusing the delegated andenumerated powers along the way, is the fiat monetary system

employed by government to bypass all Constitutional limitations.

As the government continues to expand its influence over

the lives of the individual, as it seeks to redistribute the wealth of

the people into what it considers a more equitable distribution, it

produces, in reality, a stratified society where the ruling classes

are never included in the egalitarian plan. A government

aristocracy develops that sets itself above its own mandates for

Socialistic equalities; those that are privileged exclude their own

participation in meeting the required mandates of government

legislation.


10/19

Unfortunately, for the government, central planning can take

unexpected paths; usually it forms chaotic paths due to the

effects of intervention in the market. While it most certainly

appears that there are those within this government to have full

faith in the ability of government to actually control economicmechanics, the reality is that it is simply impossible. All efforts in

that direction only increase the distortion already created by

previous government intervention and interference into the

market. Those within government, the politicians and bureaucrats

will always seek to expand production within the economy

however; the massive inefficiencies brought about by the

governments own intervention in the markets inhibits such

production. The incentives of production are destroyed, not only

are the incentives to produce destroyed, but the incentive to act

productively is destroyed by the unending cycle of government

intervention necessary to keep the system hobbling. The really

amazing fact is that even in the face of such overwhelming

evidence of the failure of Socialistic economic policies, most

politicians who adhere to such ideology are completely unwilling

or unable to abandon the ideology.

As with all Socialistic or quasi-Socialistic political economicsystems, the resources and funds required to maintain such a

system become enormous, even crippling to the markets. Instead

of providing economic stability, the results are chaotic disruptions

as the government intervention apparatus continues to intervene

to correct the problems resulting from the previous manipulations

by the government in the economic processes. It is a cycle of

destruction, feeding upon itself as the government continues to

gain more and more control over economic matters. Eventually,the entire system becomes unmanageable and the controls

unenforceable. Under such system there can never be any real

planning, such planning must eventually reach the stage of

reactionary responses to the consequences of the governments

own policies and legislative mandates. Real control becomes

illusionary.


11/19

As the government assumes more and more responsibility

for the economic well being of the citizens, the less well being

there is to go around. Everyday life becomes almost unbearable

as people attempt to skirt the system that has entrapped them.Resentment and open hostility will manifest, causing the

government, in the interest of its own survival, to brutalize the

people. Individual freedoms are sacrificed for The State

Collective, propaganda is geared toward any hint of discontent

and those who intend to rule do so with the cruelest intent. As failures mount, the government is quick to place blame,

that is, to place blame on anyone and everyone other than itself

and its policies. The government must turn to external threats in

hopes to rally the people behind it and no longer depends on

reality of potential threats, when it is enough to fabricate those

events to garner support. Of course, corruption is always present,

but now and then it becomes necessary to expose internal

corruption to maintain a degree of legitimacy in the eyes of the

people.

As the Socialistic economic and social system crumbles

under its own weight, the government must resort to overt forceto maintain its control over the people; there is no other

alternative but state-terror as a sanctioned method of

maintaining its power. The Obama Administration has set its course, a course that

is resulting in one of the most massive periods of deficit spending

in the history of our country; the only real method for financing

that spending is a policy of inflation since there is no possible way

for this government to tax its way to solvency. Using thegovernments favorite instrument, fiat currency, it has been able

to spend with wild abandon without the worry of massive taxation

at this point to keep the system working. Factually, there is

absolutely nothing this government can do, or will do, to get itself

and this country out of this situation it now faces.


12/19

The actions of this government have been, and are,

distorting, actually destroying the uniform rate of profit that the

markets normally establishes and governs. As such, this

distortion can be seen in the manner in which businesses make

business decisions and even how they account for profit. Theentire system of fiat currency and the economy on which that

system must be based creates some of the most destructive

economic factors that eventually cannot be hidden in the real

world. The rate of influx within the withdrawal and injection of

capital is contorted through the inflationary depreciation of the

fiat monetary regime. As such, the actual profit and therefore,

capital available to business and even individuals is a faade and

cannot provide an accurate portrayal of economic reality. This

distortion can easily be seen by comparing profits without the

effects of inflation with the effects of inflation on the rate of

profit. Eventually, this begins to corrode the basis of production,

even the motives behind production. Indeed, since the rate of

profit becomes distorted, over time, the measure of total

production also is distorted, as well as the ability of business to

correctly anticipate actual consumer demand.


13/19

It should be evident that along with the distortions created

by the monetary system and the manipulation of that system,

there has, by necessity, been a drastic increase in what can only

be considered an almost completely subsidized economy,

generated by the power of government to redistribute wealthfrom what remains of the productive sector of the economy to the

non-productive sector, as well as those businesses which are

politically connected. Subsidies are nothing more than a form of

price control, along with such price controls; wages are equally

manipulated through various means, from taxation to fiat

inflationary depreciation. Under such a system, there can never

be real expectations of stable future pricing or wages sufficient to

keep pace with unstable fiat pricing. Since the economy adjusts

itself to the quantity of money available, the fiat monetary

system, being manipulated by external forces, i.e. the

government, the adjustments themselves are a product of

quantity distortions in the supply of fiat money.

A problem arises when this distortion affects the value

judgments of businesses and individual consumers, which, in

turn, affects the demand within the economy, usually causing a

misallocation of resources and labor. There is a very good reasonwhy a fiat economy must depend upon a great deal of fiat credit

creation, the system by itself, cannot maintain economic progress

over a long period of time and will falter without such fiat credit

creation. Such a condition, of course, creates a number of

dangers, the least of which is the level of accumulated debt that

must be held to maintain the fiat economic system.


14/19

Additionally, since the normal and healthy forces within a

free-market economy are manipulated, and thus distorted, by

government intervention, the actual supply of resources are

diverted to elements within the economy which, may or may not

be the most important employment of those resources as theywould be under a free market economy. Government regulation

tends to create these diversions of resources, rerouting resources

to less efficient production that would be normal under a free

market. Normally, in a free market, the market will naturally form

a variable range where supply and demand expand and contract

naturally, the same cannot be said of the governments

manipulated economy. A free market will determine all prices by

costs of production; this is done with respect to the individuals

economic value judgments as a balance is achieved in the market

based on the various forces at play within the economy. In the

Socialistic economy, eventually no such value judgments are

possible, supply and demand become skewed according to

government policies affecting those forces.

What was once only a transitional form of Socialism has now

been implemented forcefully by the Obama Administration. This

form of Socialism cannot be considered traditional Socialism, butis a conglomeration of Socialistic principles mixed, by necessity,

with free-market principles, but the transition to a total Socialistic

system is much closer under the Obama Administration than at

any other time in our history. The problem that the Obama

Administration seems to be completely oblivious of is the fact that

under such a system there can be no real economic progress, the

economy falls into deeper levels of disarray, requiring more and

more government intervention just to create a degree of balancewithin the economy.


15/19

While the former Soviet Union suffered a rather rapid decay

due to various factors, the least of which were an unsustainable

Socialistic economic system, the United States will suffer form a

slightly different type of economic and social decay. Obamas Kiss

of Death will include a combination of factors that were notprevalent in the former Soviet Union, but there will be

comparisons to be sure. The fact that the United States has been

so dependent upon an open fiat monetary system, fractional

reserve banking system and fiat credit creation that there will be

a much more intense form of decay, causing an intense collapse

on many fronts, including societal.

There will be a convergence of events taking place through

the fiat economies around the world, the events of the United

States will prove to be a fatal blow, not only domestically, but on

the foreign economic fronts. As the economic situation grows

worse, so too will the attempts of the government to maintain

control and power. These attempts will naturally include tactics

that will not be mistaken as anything but tyrannical, despotic and

cruel. The government will take upon itself life and death

decisions that will impact every aspect of the lives of the People

of this country. As an high rate of fiat inflation turns extreme, more extreme

price controls will ensue, making matters worse, leading to

massive shortages and setting off a cycle of uncontrollable events

that will seem, in many respects, contradictory in traditional

economic terms since there is no real historical comparison

available. A hyper-inflationary depression will produce events that

mimic both deflation and inflation, but are not, in the strictest

sense either. The displacement of employees will be massive aslayoffs increase at an alarming rate. Many of the most respected

companies will be wiped away with a rapidity that will literally be

shocking and economically earth shaking.


16/19

Property rights will be the first to suffer then will come the

abolishment of all individual rights. There will be a rapid rise in

black market activities and the government will seek to impose

draconian measures to prevent such activities, without much

effect. The forcible expropriation of the means of all production,the implementation of heavy-handed controls of both prices and

wages will inevitably create even more chaos. We will see

starvation on an ever-increasing scale, along with acts of

desperation by the public as mass confusion and distrust spread.

Widespread violence will bring about even more acts of abuse and

even atrocities which will be viewed as necessary and perhaps

even proper [by the political elite] given the increasingly

uncontrollable situation.

The Panic of 2008, which is the preview of events to come,

will appear to be good times as the economic system deteriorates

in the most surprising ways imaginable. Economic and therefore,

social dislocation will be nightmarish in the extreme, social unrest

will gravitate toward complete chaos and all faith in government

will be erased.

The real danger, particularly for this government, is thesocial unrest that will result from such distortions. There will

either be a complete breakdown of the economic functions in this

country or there will be a continuation of a gradual disintegration,

which will allow the government to implement a complete

Socialistic economy, thus a society, without the need for forceful

restraint. In other words, if there is a very gradual decline in the

economy well-being of this country then the people will be much

more receptive of such government controls and intervention. Ifhowever, there is a rapid disintegration, which at this point can

be expected, then the likelihood of a drastic backlash against

government intervention is possible. The traditional views upon

which this country was founded have a chance of resurfacing

during such a period of disintegration.


17/19

That being said, there is still hope and it is not the kind of

hope promoted and promised by this illegitimate Administration.

It is a hope of Restoration, a hope that the People of this country

have reached the point where they are no longer asleep and have

started to question the actions and motives of their government.Perhaps the greatest force to confront this heavily centralized

government is the 10th Amendment Movement and the

empowerment of the Several States to interpose themselves,

effectively nullifying federal government actions and laws in favor

for a much more Constitutional stance. The concerted efforts of a

growing number of States, with a growing awareness and support

of the Citizens of those States, will be persuasive, as the

movement grows, so to will be the pressure on the federal

government to reconsider its stances and actions.

A plea to the common sense of the American People, or at least that,

which remains, will go far in crippling the goals of this Administration.

There will come a time, and we have almost reached that point, when the

American People will finally have had enough of the folly instituted by this

government. We are fortunate in that the People of this country are not

accustom to nor inclined to trust nearly as much as other countries where

the tradition of being subjected to a paternal government was generallyaccepted as normal. There are rumblings in the land, and many of those

rumblings are coming from the some of the more surprising places and

people.


18/19

13/05/2010 05:21:00


19/19

13/05/2010 05:21:00

economic kiss of death: obama style

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