The foundation of the Soviet model of trade and investment was centralization under the guise of “universal public ownership”. The entire goal of communism in general was not to give more social and political power to the people, but to extinguish alternative options and focus power into the hands of a select few. The process used to reach this end result can vary, but the goal always remains the same. In most cases, such centralization begins with economic hegemony, and it is in our fiscal structure that we have the means to see the future. Sovietization in our financial life will inevitably lead to sovietization in our political life.
Does the U.S. economy’s path resemble the Soviet template exactly? No. And I’m sure the very suggestion will make the average unaware free market evangelical froth at the mouth. However, as I plan to show, the parallels in our fundamentals are disturbing; the reality is that true free markets in America died a long time ago. Continue reading
America faces a seminal reality: We are broke, and we are getting broker by the day. This is the real “fiscal cliff” the country is about to jump off, not the artificial one consuming Washington. Instead of confronting our looming insolvency, the electorate voted to take the plunge. It ratified Mr. Obama’s drive to erect the equivalent of a Franco-German welfare state. Consider Obamacare, the massive stimulus, failed green-energy boondoggles, record numbers on food stamps, constant extensions of unemployment benefits, public housing subsidies, unprecedented government spending and free contraception.
Voters chose economic security over individual opportunity, handouts instead of self-reliance, statism over capitalism. Rather than rebuking Mr. Obama, they rewarded him. Continue reading
As a small example and although not complete evidence of a ‘depression’, as there are many components and economic indicators, this can even be evidenced at your local supermarket. We’re talking about inflation. Though most would believe inflation means only higher prices and an out-of-control downward spiral of monetary value, it’s not the only indicator. The next time you decide to purchase a can of soup, you might notice the quantity of each can produced went from 15 ounces to 12, for example. That’s not to say you’re being ripped-off by the company selling you the product, but an indicator that they also have to adjust their pricing models in response to their rising production costs due to their suppliers raising costs as well. In summary: You’re paying the same amount for less. The same goes for rice, sugar, ice cream and other various food/beverage products.
According to Al Lewis on The News Hub, we’re actually in a depression right now, but most people don’t see it. One out of seven Americans are on food stamps – if they weren’t getting cards in the mail every month, you’d see them in soup lines.
Video link: Why the U.S. Is in an Invisible Depression (Wall Street Journal)