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“Doesn’t make much sense to me to spray everything with chemicals when you’re trying to clean.”
James Dye

Commentary & Analysis
“… an artificial hierarchical oligopoly …”

I read an article this morning suggesting the entitlement generation is ruining American culture.

No arguments here. Join the club.

And then I received an email warning me about the 2-year incarceration of a border patrol agent who had lifted a drug-smuggler off the ground by the handcuffs. He was penalized for unnecessary roughness, I guess. You can read about it here if you feel like you need to get angry about something.

This comes after I heard clips last night of President Barack Obama’s speech in Kansas earlier in the week. With an ugly, opaque record on which to run for a second term, Mr. Obama is already turning to class warfare. He recognizes the overwhelming dependence (intentional or unintentional) of American citizens (specifically the lower and middle classes) on the government; he must scare us into thinking any alternative candidate would snatch our lifeblood away from us.

I read a blog this morning that basically explains why followers of Ayn Rand are a disgrace to the conservative mind-set of the Republican Party. (I guess this particular blogger still thinks the Republican Party is the party of God and ethics. Newsflash: just because real conservatives choose not to vote Democrat does not mean the establishment Republican Party is necessarily a moral beacon.) Among many other things, this blogger is obviously unaware that Ayn Rand’s philosophy centered on a universal moral code; granted it is not one based upon the existence of God, but it is a universal moral code that runs parallel to the very same morality one can draw from the Bible. This blogger accused Libertarian-minded individuals who praise the work of Ayn Rand of not possessing a moral code worthy of the Republican Party.

Now, where do I start?

Republicans – so-called “conservatives” – need to wake up. I think it is safe to say the Republican Party has been on the downswing for at least 20 years. The Tea Party tried to shake it out of its establishment trance, but as I watch the GOP primary campaign I fear the Party is being sucked back in.

We have a voter base that drools over talking points and shuns anything of principle and reason. I am no Glen Beck fanatic, but there is a reason he co-opted the title of Thomas Paine’s great work – Common Sense – for use on his own book. We need some common sense to reject the entitlement mentality, shake loose of the elitist vice grip, and overturn the big government agenda that are bent on undermining the culture of America (knowingly and unknowingly, intentionally and unintentionally.)

We have a self-proclaimed morally conservative blogger criticizing a defender of individual liberties in favor of a highly-connected “Republican” who talks a good game but whose ethics are suspect as best. This blogger may be morally conservative, but he is intellectually challenged.

We have a President who incites fear and uncertainty in the populous so that a person of character, morals and principles will not be elected to the White House and promote individual liberties, free markets and, God forbid, personal responsibility. Our President fears the dastardly “every man for himself” environment probably because his own moral compass can’t find north.

We have government agencies that are willing to sacrifice a border patrol agent who is doing his job, and then grant immunity and a visa to a criminal because said criminal didn’t like the fact that he was arrested for smuggling marijuana into the US. Our government continues to set a precedent of rewarding the rule-breakers and rule-makers at the expense of the rule-enforcers and rule-followers.

The entitlement mentality has created a system that can be easily manipulated for the benefit of society’s leeches and at the detriment of society’s producers.

This country needs to wake up.

If you’re wondering why this rant has made it into Currency Currents, keep reading …

Our failure to elect principled government officials has lead to a monetary and fiscal mess. Policymakers are not held to strict standards but instead facilitate a transfer of economic influence from the private sector to the public sector (or to the highly-connected corporations; same difference.)

This creates a stealth dependence on government and, even worse, a stranglehold on the American citizens. What choice do Americans have if the Federal Reserve continues to prop up a culture dependent on debt and inflation? What choice do we have if the government refuses to rein in out-of-control spending on so many massive AND unnecessary programs?

Americans do have a vote. But they’ve notoriously squandered it, likely because they are subconsciously scared by any politician with an actual backbone. Sadly, it is the spineless do-gooder politicians that we need to fear.

When is that going to start happening?

I’m not holding my breath.

In the meantime, we can only expect economic booms of shorter duration and economic busts of greater frequency. Maybe, just maybe, eventually, people might become so sick of volatile economic cycles that they sober up to reality and force a change.

To summarize this reality, here is another piece I came across this morning:

… this macro crisis appeared on the horizon long ago, easily calculated by any actuary armed with the knowledge that governments were not investing tax streams, but stealing them for current consumption.

Our monetary policies do not defend inflation; they fund deficit spending and protect banking institutions. That is their empirical purpose, and that is what technocrats are now struggling to accomplish in the EU. Further, the monetary system as constructed is not modeled after complexity; it is an artificial hierarchical oligopoly with all the single process failure points that entails, pasted on top of complex economies and kept alive by increasing leverage and bailed out by equally non-robust, frail self-serving governments without the will or common sense to reform. We are not watching complexity at work; we are watching unsustainable bureaucracies self-destruct while they force complex economies to foot the bill.

That about covers it.

Happy Thursday!